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What The Seller Can Pay

Can the seller pay closing costs on a VA loan?

Yes. The Department of Veterans Affairs (VA) lets a seller or builder pay some or all of your closing costs. VA limits other help from the seller, called seller concessions, to 4% of the home's reasonable value.Seller-paid closing costs have no VA limit. Seller concessions stop at 4%.

This page shows what counts toward the 4%, what does not, which fees VA lets you pay, and what to ask before you sign.

VA and federal law sourcedChecked October 2026

Start Here

Two kinds of help from the seller

VA sorts what a seller pays for you into two groups. Your closing costs are one. Seller concessions are the other, and only they count toward the 4% limit.

"We don't limit credits for a loan's closing costs, but we do limit seller's concessions to no more than 4% of your home's reasonable value." VA, VA funding fee and loan closing costs.

  • What a seller concession is. VA's lender handbook calls it anything of value the seller or builder adds that you pay nothing extra for, and that a seller is not normally expected or required to pay. A gift, like a TV or a microwave, is one of VA's examples.
  • What the 4% is measured against. The home's reasonable value. VA says you can find it on the VA Notice of Value your lender gives you.
  • Any mix counts. VA's lender handbook says any concession, or any mix of them, worth more than 4% of the reasonable value is too much for a VA loan.
  • Why VA has a limit. VA's lender handbook warns that, in extreme cases, concessions can draw a buyer into a loan they cannot afford, or hide that they do not qualify.

New to the Notice of Value? Our VA appraisal guide explains it.

Sources: VA funding fee and loan closing costs. VA Lenders Handbook, Chapter 8 (Topic 5, a to d). Retrieved 30 October 2026.

Find What The Seller Is Paying

What counts toward the 4%

Find each thing the seller offers to pay. VA counts some of them toward the 4% and not others.

01

Your closing costs

These include the VA appraisal, the credit report, title insurance, recording fees and your lender's fee. VA sets no limit on how much of them a seller pays, and they do not count toward the 4%.

No VA limit
02

Discount points

Points are fees you pay your lender for a lower interest rate. If the seller pays the points that fit the market, VA does not count them. Extra points beyond that do count.

VA's example: if the market rate comes with two points and the seller pays five, three of them count toward the 4%.

Market points not counted
03

Your buyer's agent

If the seller pays your agent, VA does not count it as a seller concession. VA encourages you to negotiate your agent's pay, whoever pays it.

Not counted
04

Your VA funding fee

A seller can offer to pay it. VA counts it toward the 4%.

Counts
05

Your taxes and insurance, paid ahead

If the seller pays your property taxes or home insurance ahead of time, VA counts it.

Counts
06

Paying off your debts

If the seller pays off balances you owe on credit, or a judgment against you, VA counts it.

Counts
07

A temporary rate buydown

A temporary buydown is money set aside to lower your payment for the first one to three years. If the seller or builder pays for it, VA counts it toward the 4%.

VA says lenders generally qualify you on the full payment you will owe after the buydown ends.

Counts

Not sure you pay the funding fee at all? Our funding fee guide shows who does not.

Sources: VA Lenders Handbook, Chapter 8 (Topic 5, b and d). VA funding fee and loan closing costs. VA Circular 26-24-14, sections 4 and 6. VA, Temporary buydowns. Retrieved 30 October 2026.

Your Side Of The Bill

The fees VA lets you pay

VA also limits what you, the buyer, can be charged. VA says the seller, the lender or someone else may pay fees for you, within VA's limit on seller concessions.

  • Fees on VA's list. You may pay reasonable and customary amounts for the items VA lists, like the VA appraisal, the credit report, title work and title insurance, recording fees, and your share of taxes and insurance.
  • One lender fee. On a purchase loan, your lender can charge you one flat fee of up to 1% of the loan amount. The lender's other costs, like processing, document preparation, closing or settlement fees, notary fees and escrow fees, have to fit inside that 1%, unless someone other than you pays them.
  • Discount points. You may pay reasonable discount points.
  • Your own lawyer. Your lender cannot charge you for a lawyer, other than for title work. You can hire your own lawyer and pay them yourself.
  • Your buyer's agent, in some places. Under a temporary VA rule, you may pay your agent a reasonable and customary amount where the seller's agent cannot set your agent's pay in the home listing service, or where your agent's pay cannot be set by or paid through the seller's agent. You cannot add it to your loan, and your lender counts it in the cash you need to close.
  • A termite inspection, where VA requires one. You may pay for the inspection and the repairs VA requires. VA encourages you to negotiate the cost with the seller.
  • Some local fees. VA allows some extra fees based on where the home is. Ask your lender which apply to yours.

On a purchase loan, you cannot add your closing costs to the loan. VA says the VA funding fee is the only one you can add. You pay the rest when the loan closes, so plan for the cash or the seller's help.

Not sure if your home needs a termite inspection? Our VA appraisal guide shows when VA requires one.

Sources: 38 CFR 36.4313 (a) and (d). 38 U.S.C. 3703(c)(4)(B). VA Lenders Handbook, Chapter 8 (Topic 2, b to d; Topic 3, b; Topic 4; Topic 7, a). VA funding fee and loan closing costs. VA Circular 26-24-14, section 3, and Change 1. VA Circular 26-22-11. VA Circular 26-24-19, section 3 b. Retrieved 30 October 2026.

What To Ask

Questions for your lender

VA sets the limits. Your lender works out the numbers on your loan. Your Loan Estimate shows what your closing costs are likely to be. Ask your lender:

  1. When the VA Notice of Value comes back, what is 4% of the home's reasonable value?
  2. Which of the seller's credits in my offer count toward VA's 4% limit?
  3. How many discount points fit the market for my loan right now?
  4. Which costs on my Loan Estimate fall inside your 1% fee?
  5. Are there extra fees VA allows where this home is?

This page is not legal or financial advice. VA sets the rules, and your lender decides on your loan.

A page can explain what VA lets a seller pay.An agent who knows how military benefits work can help you plan a purchase around VA's limits.

Mission Ready Operators know how military life, rank and benefits work, and how orders and moving dates work. Questions about your loan belong with your lender.

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Last reviewed October 2026 · Maintained by My Military HQ

Common Questions

Questions people ask about seller help on a VA loan

Can the seller pay closing costs on a VA loan?

Yes. VA lets a seller or builder pay some or all of your closing costs, and VA sets no limit on those. VA limits seller concessions, like paying your VA funding fee or paying off your debts, to 4% of the home's reasonable value.

What is the maximum seller concession on a VA loan?

VA's limit is 4% of the home's reasonable value, the value on the VA Notice of Value. VA's lender handbook says not to count the buyer's closing costs or normal discount points toward it. Ask your lender how it counts each credit in your offer.

Can the seller pay the VA funding fee?

Yes. VA allows a seller to pay your VA funding fee. VA counts it as a seller concession, so it goes toward the 4% limit.

What fees can a veteran not pay on a VA loan?

VA's rules let you pay only the fees VA lists, one lender fee of up to 1% of the loan amount on a purchase loan, and reasonable discount points. The lender's other costs, like processing and document fees, have to fit inside its 1% fee, unless someone else pays them. VA says the seller, the lender or someone else may pay fees for you, within VA's limit on seller concessions.

Can you roll closing costs into a VA loan?

Not on a purchase loan. VA says the VA funding fee is the only cost you can add to a purchase loan. You pay the other fees and charges when the loan closes. VA's rules are different for a refinance, so ask your lender.

Who pays the buyer's agent on a VA loan?

VA says you and the seller can negotiate it. If the seller pays your agent, VA does not count it as a seller concession. A temporary VA rule from 2024 also lets you pay your agent in some places, but not by adding it to your loan.

Sources

Where every fact came from

Every rule on this page comes from VA or federal law. Where they do not say something, we left it out.

What we left out on purpose. We give no dollar amounts for closing costs: VA says they depend on the loan, the place, the lender and more, and your Loan Estimate shows yours. Two older VA lines are out of date, so this page follows the newer rules. VA's lender handbook still says a veteran may never pay a buyer's agent; VA changed that in 2024 with a temporary rule. VA's regulation still lists only some loans where a veteran may pay discount points; a 1992 law lets a veteran pay reasonable points. VA's closing costs page agrees with both newer rules. We do not cover refinance loans in detail. This page covers VA home loans only.

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