What is the maximum VA loan origination fee?

What is the maximum VA loan origination fee?

• A. 1%
• B. 2%
• C. 0%
• D. 0.5%

Answer: (A)

A key idea here is that the lender’s fee to origin the loan for a VA loan is limited. The VA sets a cap on the origination charge at 1% of the loan amount, so the maximum origination fee a lender may charge is 1%. This helps keep upfront costs predictable for veterans. It’s important to distinguish this from the VA funding fee, which is a separate charge set by the VA and varies based on use, down payment, and other factors. While other closing costs can apply and some may be negotiable, the specific origination fee itself cannot exceed 1%.

A key idea here is that the lender’s fee to origin the loan for a VA loan is limited. The VA sets a cap on the origination charge at 1% of the loan amount, so the maximum origination fee a lender may charge is 1%. This helps keep upfront costs predictable for veterans. It’s important to distinguish this from the VA funding fee, which is a separate charge set by the VA and varies based on use, down payment, and other factors. While other closing costs can apply and some may be negotiable, the specific origination fee itself cannot exceed 1%.