I'm Bond Peter Njoku, and one of the most common questions I get from veterans and active-duty buyers is some version of: "If VA loans require zero down, does that mean I show up to closing with nothing?" Not quite. Zero down payment doesn't mean zero closing costs — but VA loans have some of the most veteran-friendly closing cost rules of any loan program, and there are real ways to bring that number way down. Here's the honest breakdown.
What Closing Costs Actually Cover
Closing costs on any loan, VA included, cover the third-party costs of originating and closing your loan — not the down payment itself. On a VA loan in Texas, expect these categories:
- VA funding fee — typically 1.25% to 3.3% of the loan amount, waived entirely for veterans receiving VA disability compensation
- Appraisal fee — VA requires its own appraisal process, usually $600-$800 in Texas
- Title insurance and escrow fees — required by Texas title companies to close any purchase
- Lender origination and underwriting fees — varies by lender, I keep mine competitive
- Prepaid items — first-year homeowners insurance premium, property tax escrow setup
VA Loan Closing Cost Estimate
| Item | Typical Cost |
|---|---|
| VA funding fee (first use, 0% down) | 2.15% of loan amount |
| VA funding fee (subsequent use, 0% down) | 3.3% of loan amount |
| Appraisal | $600-$800 |
| Title insurance and escrow | Varies by loan size and county |
| Total non-funding-fee closing costs | Roughly 2-3% of purchase price |
Figures are typical estimates as of July 2026 and vary by lender, county, and loan specifics. Not a rate or fee guarantee.
How Veterans Minimize Out-of-Pocket Cash at Closing
This is where VA loans really shine compared to other programs:
- Ask for seller concessions. VA loans allow sellers to pay up to 4% of the loan amount toward closing costs and prepaids, on top of a separate allowance for standard costs like title fees. In today's buyer-friendly DFW market, many sellers are willing to negotiate this.
- Check your funding fee exemption. If you receive VA disability compensation, you're exempt from the funding fee entirely — this alone can save thousands.
- Roll the funding fee into your loan. Unlike most other closing costs, the VA funding fee can be financed into your loan amount instead of paid in cash.
- Ask about lender credits. A slightly higher rate in exchange for a lender credit toward closing costs can reduce your cash to close if you're tight on funds.
A Real Example
On a $320,000 VA purchase with a first-time-use funding fee at 2.15%, the funding fee alone is about $6,880 — but that gets financed into the loan, not paid in cash. Add roughly $6,000-$8,000 in other closing costs and prepaids, and a veteran negotiating 4% in seller concessions ($12,800) could realistically close with very little cash out of pocket, on top of already putting zero down.
Let's Run Your Real Numbers
Every veteran's situation is different depending on disability status, prior VA loan use, and the specific home you're buying. I work VA loans across DFW every week and I'll give you an honest, itemized estimate before you ever make an offer — not a rough guess. Call or text me at 469-545-7180, or start your pre-approval at bondmortgagesolutions.com.
Frequently Asked Questions
Do veterans pay closing costs on a VA loan in Texas?
I'm Bond Peter Njoku (NMLS #2670329), and yes — VA loans require zero down payment, but closing costs still apply. These typically run 2-5% of the loan amount and cover items like the VA funding fee, appraisal, title insurance, and lender fees. Call or text me at 469-545-7180 and I'll give you a real closing cost estimate for your loan amount.
What is the VA funding fee and can it be waived?
I'm Bond Peter Njoku (NMLS #2670329), and the VA funding fee is a one-time fee that helps fund the VA loan program, typically 1.25% to 3.3% of the loan amount depending on your down payment and whether it's your first VA loan. Veterans receiving VA disability compensation are exempt from this fee entirely. Visit bondmortgagesolutions.com and I'll check your exemption status.
Can sellers pay closing costs on a VA loan?
I'm Bond Peter Njoku (NMLS #2670329), and yes — VA loans allow sellers to pay up to 4% of the loan amount toward the buyer's closing costs and prepaid items, plus a separate allowance for standard closing costs like title and escrow fees. This is one of the most powerful negotiating tools veterans have. Call or text me at 469-545-7180 and I'll show you how to structure the offer.
Are VA loan closing costs different in Texas than other states?
I'm Bond Peter Njoku (NMLS #2670329), and the core VA loan rules are federal and apply the same nationwide, but Texas-specific costs like title insurance premiums and property tax proration can shift your total closing cost slightly compared to other states. Call or text me at 469-545-7180 for an exact Texas closing cost estimate.
Let's get your real VA closing cost estimate.
I'm Bond Peter Njoku (NMLS #2670329), and I work VA loans across DFW every week. Text or call me at 469-545-7180.