VA Loan Closing Costs Explained: What San Antonio Buyers Actually Pay in 2026

by Christopher Beal

LAST UPDATED: OCTOBER 20, 2026 | By Christopher Beal, U.S. Army Veteran & Realtor

Short answer: A VA loan in San Antonio still has closing costs, but VA limits what you can be charged and lets the seller pay most of them. With full entitlement you need no down payment, and the only cost you can roll into a VA purchase loan is the VA funding fee: 2.15% of the loan on first use with less than 5% down, 3.3% on later use, and $0 if you receive VA disability compensation or fall in another exempt group. Your lender's own charges are limited to the itemized fees VA allows, or a flat charge of no more than 1% of the loan in place of its other origination costs. Everything else (appraisal, title, recording, insurance, tax escrow, prepaid interest) is paid at closing, by you or by the seller. The seller can pay all of your normal closing costs with no VA cap, plus concessions such as your funding fee of up to 4% of the home's reasonable value. The exact dollar amounts depend on your lender, the home and your closing date, and they appear on your Loan Estimate.

I am Christopher Beal, a U.S. Army veteran and REALTOR (TREC #723559), Owner of Veteran Real Estate San Antonio, brokered by eXp Realty. More about how I work.

Updated October 20, 2026: corrected the funding fee exemptions and the 4% concession basis to match VA.gov (page updated October 5, 2026), corrected the Texas lender's title policy cost (a $100 promulgated premium when issued with the owner's policy), corrected the outdated rule on buyer-paid agent fees, replaced unsourced cost ranges and market figures with sourced rules and a labeled worked example, and removed a closing-cost program reference.

Christopher Beal pointing to a line-item closing cost worksheet at a San Antonio title company table — AI-generated illustration of Christopher Beal reviewing a closing cost worksheet. Not a photo of an actual closing.

What Do VA Buyers Actually Pay at Closing in San Antonio?

Think of a VA closing in three groups. Only the first can be financed, and only the second is capped by VA rules. The third is the same set of costs any buyer pays, and the seller can cover it.

Group	What it includes	Who sets the amount	Can it be financed?
VA funding fee	One-time fee paid to VA	VA, by use and down payment; $0 if exempt	Yes, the only purchase cost that can be
Lender charges	Origination, processing, underwriting and similar lender costs; discount points if you choose to buy the rate down	Your lender, within VA rules: itemized allowable fees, or a flat charge of up to 1% of the loan in place of other origination costs	No
Third-party costs and prepaids	VA appraisal, credit report, title examination and title insurance, recording fees, survey if required, hazard insurance, tax and insurance escrow deposit, prepaid interest	The provider, the state (Texas title premiums are promulgated) or the county and your insurer	No

Sources: VA.gov funding fee and closing costs (updated October 5, 2026) and 38 CFR 36.4313 (charges and fees a veteran may pay). Checked October 20, 2026.

Your lender must give you a Loan Estimate within three business days of your application, and a Closing Disclosure at least three business days before closing. Those two documents carry your real numbers, line by line. The CFPB's Closing Disclosure explainer shows how to compare them. If you have not started the loan yet, begin with my guide to VA loan pre-approval requirements in San Antonio.

How Much Is the VA Funding Fee in 2026, and Who Pays $0?

The funding fee is usually the largest single cost on a VA purchase. It depends on whether you have used the benefit before and how much you put down.

Down payment	First use	After first use
Less than 5% (including $0 down)	2.15%	3.3%
5% or more	1.5%	1.5%
10% or more	1.25%	1.25%

Source: VA.gov, purchase and construction loans for veterans, active-duty service members and National Guard and Reserve members, rates effective April 7, 2023; page updated October 5, 2026.

You do not pay the funding fee if any of these apply (per VA.gov):

You receive VA compensation for a service-connected disability.
You are eligible for that compensation but receive retirement or active-duty pay instead.
You are a surviving spouse receiving Dependency and Indemnity Compensation (DIC).
You are a service member with a proposed or memorandum rating, issued before closing, showing you are eligible for compensation based on a pre-discharge claim.
You are on active duty and provide evidence of a Purple Heart on or before closing.

Your Certificate of Eligibility shows your funding fee status. If you have a claim pending, tell your lender early: the exemption has to be documented before closing.

For the full rules, including refinance rates, see my VA funding fee explainer.

Worked Example: A $282,500 VA Purchase in Bexar County

Illustrative only. The price is the Bexar County median closing price for July 21 to October 18, 2026: $282,500, from a complete SABOR MLS pull through LERA (residential sales, closed status, 5,387 sales, pulled October 19, 2026). Assume $0 down, first use, no exemption, and a home that appraises at the price. Only the items VA sets or caps are shown as dollars; everything else comes from your lender's Loan Estimate.

Item	Amount in this example	How it is set
Down payment	$0	Full entitlement; lender approval and appraisal still apply
VA funding fee (2.15%)	$6,073.75, usually financed; $0 if exempt	$282,500 x 2.15%
Lender flat charge, if the lender uses one	No more than $2,825	1% of the $282,500 loan, in place of other origination costs
Lender's title policy	$100 premium, plus any required endorsements	Texas rate rule R-5, when issued with the owner's policy
Appraisal, credit report, recording, survey	See your Loan Estimate	Providers and county; the VA appraisal fee follows VA's fee schedule
Insurance, tax escrow, prepaid interest	See your Loan Estimate	Your insurer, your property's taxing units, your rate and closing date
Most the seller can add in concessions	$11,300	4% of a $282,500 reasonable value, on top of normal closing costs

Arithmetic: 282,500 x 0.0215 = 6,073.75; 282,500 x 0.01 = 2,825; 282,500 x 0.04 = 11,300. Rules: VA.gov (October 5, 2026), 38 CFR 36.4313, TDI Basic Manual rate rule R-5 (effective November 1, 2024). Market figure: SABOR MLS via LERA, Bexar County, residential, closed July 21 to October 18, 2026, N=5,387, complete pull.

If the seller agrees to pay your normal closing costs and some prepaids, the cash you bring can come down to your earnest money (which is credited back to you at closing) and any option fee. How far it comes down depends on the offer, the market for that house and your lender's figures.

Which Fees Can a VA Buyer Not Be Charged?

VA regulations list the charges a veteran may pay: the VA appraisal and compliance inspections, recording fees and taxes, the credit report, current taxes and assessments with the initial escrow deposit, hazard insurance, a survey when required, title examination and title insurance, flood zone determination, and other items VA authorizes in advance. Beyond that list, a lender may charge a flat fee of up to 1% of the loan, and that flat charge is in place of all its other origination costs. In practice that means:

No stacking of lender fees. If the lender charges the 1% flat fee, it cannot also bill you separately for processing, underwriting, document preparation or similar origination costs.
No charge for obtaining the VA guaranty. The regulation bars charging the veteran for getting the guaranty itself.
No prepayment penalty. You can pay a VA loan off early without a penalty.

Buyer's agent fees changed in 2024. Older guides say a VA buyer can never pay a real estate commission. That is no longer accurate: VA.gov now lists the real estate professional's commission and fees among the items the buyer and seller can negotiate. If you agree to pay part of your agent's fee, it cannot be added to your loan (only the funding fee can be financed on a purchase), so plan for it as cash or ask the seller to cover it.

Sources: 38 CFR 36.4313; VA.gov (updated October 5, 2026). Checked October 20, 2026.

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How Can You Reduce Your Cash to Close on a VA Loan?

1. Ask the seller to pay your closing costs. VA does not limit how much of your normal closing costs a seller or builder can pay. Separately, concessions (anything of value added at no cost to you, such as paying your funding fee, paying off a debt or prepaying hazard insurance) are capped at 4% of the home's reasonable value from the VA Notice of Value. I write the request into the offer from the start, and when several buyers want the same house I may structure it differently, since a credit you cannot win does not help you.

2. Finance the funding fee. Rolling it into the loan removes it from your cash to close. You pay interest on it, so the trade-off is less cash now for a slightly higher payment.

3. Compare lender credits against the rate. Some lenders offer a credit toward closing costs in exchange for a higher interest rate. Ask each lender for the same loan with and without a credit and compare the Loan Estimates side by side.

4. Pick the closing date with prepaid interest in mind. Interest is prepaid from the closing date to the end of that month. A rough daily figure is the loan amount times the rate, divided by 365: on $282,500 at 6.5%, that is about $50 a day. Closing near the end of the month means fewer prepaid days, although your first payment comes sooner.

5. Use builder incentives on new construction. Builders sometimes pay closing costs or buy down the rate. Those credits still count against the VA concession rules where they apply. See my guide to builder rate buydowns and closing-cost credits.

Two Texas items arrive before closing: earnest money and the option fee. Both are negotiated in the contract, and earnest money is credited toward your costs at the table. My earnest money and option period guide explains how they work, and the San Antonio closing costs overview walks through cash to close for every loan type.

How Do VA Closing Rules Compare to FHA and Conventional?

Rule	VA	FHA	Conventional
Minimum down payment	$0 with full entitlement	3.5% (credit score 580 or higher)	As low as 3% on some programs
Upfront fee	Funding fee, or $0 if exempt; can be financed	1.75% upfront mortgage insurance; can be financed	None
Monthly mortgage insurance	None	Annual premium; with less than 10% down it lasts for the life of the loan	PMI with less than 20% down, removable later
Seller help	Normal closing costs with no VA cap, plus concessions up to 4% of reasonable value	Up to 6% of the sales price	3% to 9%, depending on down payment and occupancy
Lender origination limit	Allowable itemized fees, or a 1% flat charge in place of other origination costs	No equivalent VA-style list	No equivalent VA-style list

Sources: VA.gov and 38 CFR 36.4313 for VA; HUD FHA Single Family Housing Policy Handbook 4000.1 for FHA; Fannie Mae Selling Guide for conventional. Program rules as of October 2026; lenders can add their own requirements.

For a full side-by-side, read my VA loan vs FHA loan comparison for San Antonio.

What Texas and Bexar County Items Should VA Buyers Expect?

Title insurance. Texas title premiums are set by the Texas Department of Insurance, so every title company charges the same promulgated premium for the same coverage. When the owner's policy and the lender's policy are issued together, the lender's policy premium is $100 (rate rule R-5), plus any endorsements your lender requires. The standard Texas resale contract lets the parties choose whether the seller or the buyer pays for the owner's policy, so it is a negotiating point, not a fixed buyer cost. Source: TDI Basic Manual, rate rules.

Property taxes and escrow. Your tax bill depends on the taxing units for that address (county, city, school district and any special districts), so two homes at the same price can carry very different escrow deposits. Look up the address with the Bexar Appraisal District before you write an offer. Disabled veterans may qualify for a Texas property tax exemption, and a 100% disabled veteran (or one rated as individually unemployable) can qualify for a full exemption on the homestead; see my Texas veteran property tax exemption guide for the effective-date details.

Closing itself happens at a title company in Texas. My guide to how the San Antonio closing process works covers the steps from contract to funding.

Watch: What a VA Loan Home Really Costs in San Antonio (2026)

In this video I walk through the full cost of buying a San Antonio home with a VA loan: zero down with full entitlement, the funding fee, Bexar County closing costs and what the seller can legally pay. Where the video and this article differ, the article reflects the rules as checked on October 20, 2026. In particular, the funding fee exemption applies to anyone receiving VA disability compensation (or in another exempt group listed above), and the 4% concession cap is measured against the home's reasonable value.

What this video covers

Zero down. With full entitlement there is no VA loan limit and no down payment requirement; that has been the rule since January 1, 2020, when the Blue Water Navy Vietnam Veterans Act of 2019 took effect. You can finance the full price as long as the lender approves your income and credit and the home appraises. Zero down is not zero cash: closing costs, prepaids and the funding fee still exist, but the seller can pay many of them and the funding fee can be financed.

Seller-paid costs. The seller can pay all of your normal closing costs with no VA cap, plus concessions such as prepaid taxes and insurance or your funding fee, up to 4% of the home's reasonable value. Whether a seller agrees depends on that house and how the offer is written; in a multiple-offer situation the help may need to be structured differently.

Texas items. Earnest money and the option fee are negotiated in the contract. Earnest money is a deposit held by the title company and is credited toward your costs at closing.

60-Second Answer: Can the Seller Pay Your VA Closing Costs?

The short version: a seller can cover a large share of your VA closing costs. Concessions are capped at 4% of the home's reasonable value, but the standard closing costs a seller agrees to pay do not count toward that 4% cap.

Watch: Do You Pay PMI on a VA Loan? (San Antonio 2026)

I explain why VA loans never require private mortgage insurance, how that compares to conventional financing, and what it means for a San Antonio buyer's monthly payment.

Watch: The VA Closing Costs You Cannot Be Charged

If your lender uses the VA flat charge, it is capped at 1% of the loan amount (about $2,825 on a $282,500 loan), and that charge replaces the lender's other origination costs. This short video covers which fees that rules out. The sale-price figure used in the video may differ from the July to October 2026 median used in this article.

About the Author: Christopher Beal

Christopher Beal is a U.S. Army veteran and the Owner of Veteran Real Estate San Antonio, a Beal Group practice brokered by eXp Realty (TREC License #723559). A Military Relocation Professional (MRP) and VAREP member, he is a 7-time eXp Realty ICON agent, winner of Best Real Estate Agency in the 2026 Best of San Antonio Readers' Choice (San Antonio Current, 100,000+ voters), and a 3x San Antonio Business Journal Top 25 Individual Agent (#13 in 2024, #14 in 2025, #20 in 2026). His recognition also includes 3x Platinum Top 50, 2x RateMyAgent Agent of the Year, 2x Real Producers Top 100, Five Star Professional (2026), and a RealTrends 2026 ranking. He has helped 325+ families, closed more than $125M in career volume, and holds 5.0 stars across 370+ verified reviews, working almost exclusively with military and veteran buyers and sellers across Bexar, Comal, Kendall, Medina, and Bandera counties, with a focus on VA loans, PCS moves, and homebuying near JBSA-Lackland, JBSA-Randolph, and Fort Sam Houston. This guide reflects VA's published closing cost rules as checked on October 20, 2026. He can be reached at (210) 882-8583.

Frequently Asked Questions About VA Loan Closing Costs

Do VA loans have closing costs in San Antonio?

Yes. A VA loan removes the down payment for buyers with full entitlement, but you still have closing costs: the VA funding fee (unless you are exempt), lender charges within VA limits, and third-party costs such as the appraisal, title, recording, insurance, tax escrow and prepaid interest. Only the funding fee can be financed on a purchase. The seller can pay your normal closing costs with no VA cap.

Can the VA funding fee be financed into the loan?

Yes. On a VA purchase loan the funding fee is the only cost that can be added to the loan amount. On a $282,500 purchase with $0 down and first use, the 2.15% fee is $6,073.75. Financing it means less cash at closing and a slightly higher monthly payment.

Who is exempt from the VA funding fee?

Per VA.gov: veterans receiving VA compensation for a service-connected disability; veterans eligible for that compensation who receive retirement or active-duty pay instead; surviving spouses receiving DIC; service members with a proposed or memorandum rating before closing based on a pre-discharge claim; and active-duty members who show evidence of a Purple Heart on or before closing.

What fees can a lender not charge a VA buyer?

VA regulations list the charges a veteran may pay. A lender may add a flat charge of up to 1% of the loan, but that flat charge replaces its other origination costs, so it cannot also bill separate processing or underwriting fees. A veteran also cannot be charged for obtaining the VA guaranty, and VA loans carry no prepayment penalty.

Can the seller pay my VA loan closing costs?

Yes. VA does not limit how much of your normal closing costs a seller or builder can pay. Concessions, such as paying your funding fee or prepaying insurance, are capped separately at 4% of the home's reasonable value from the VA Notice of Value. On a home that appraises at $282,500, that cap is $11,300.

Can a VA buyer pay their own agent's commission?

Yes, if you agree to. VA.gov lists the real estate professional's commission and fees among the costs the buyer and seller can negotiate. It cannot be financed into a VA purchase loan, so it is paid in cash at closing or covered by the seller.

How much is the lender's title policy in Texas?

When it is issued together with the owner's policy, the lender's policy premium is $100 under Texas Department of Insurance rate rule R-5, plus any endorsements your lender requires. The owner's policy is priced at the state's basic rate, and the contract sets whether the seller or the buyer pays for it.

How does the closing date affect my cash to close?

Interest is prepaid from your closing date to the end of that month. A rough daily figure is the loan amount times the rate divided by 365; on $282,500 at 6.5% that is about $50 a day. Closing later in the month means fewer prepaid days.

Do Bexar County property taxes affect my closing costs?

Yes. Your lender collects an initial tax and insurance escrow deposit at closing, and the tax portion depends on the taxing units for that address. Check the address with the Bexar Appraisal District. A 100% disabled veteran, or one rated individually unemployable, may qualify for a full homestead exemption.

Explore More VA Loan and San Antonio Resources

Call or text Christopher Beal: (210) 882-8583

Watch: How Much Cash to Close on a House in San Antonio?

Zero down on a VA loan is not the same as zero cash at closing. In this short video I walk through what makes up your cash to close and what can bring it down.