VA construction loan closing cost estimator
First: a complete hypothetical worksheet on a $500,000 build ($100K land + $400K construction), organized like your Loan Estimate — every fee deliberately over-estimated. Then enter your own project cost, pick your funding-fee scenario, and watch the same math scale. This is an educational estimate for a VA one-time-close construction loan — clearly not a quote or a Loan Estimate. The good news for those who served: with full entitlement the VA sets no maximum on your loan, so your build is sized by qualification, not a cap.
Jim Blackburn · NMLS #1072866 · 7× Scotsman Guide Top Producer · $500M+ closed · (954) 993-1625
The funding fee — and why many pay $0
Reviewed by Jim Blackburn, NMLS #1072866.
VA funding fee — a one-time charge
The VA funding fee is a one-time charge that helps keep the program running. It can be FINANCED into the loan rather than paid in cash at closing, so it need not be money out of pocket. The percentage depends on your benefit use and any down payment — the estimator below shows the figure for the scenario you pick.
Many Veterans are EXEMPT — $0
This matters: Veterans receiving (or entitled to receive) VA disability compensation, Purple Heart recipients on active duty, and certain surviving spouses are generally exempt from the funding fee entirely — $0. Your exemption status appears on your COE. Choose "EXEMPT" in the estimator to see it drop to zero.
No monthly mortgage insurance
Unlike FHA and most conventional low-down-payment loans, a VA loan carries no monthly mortgage insurance at all. There is no recurring MI line in your payment — a structural feature of the VA benefit, framed here generally and not a rate or payment quote.
A complete hypothetical example — $500,000 build
$100,000 land + $400,000 construction in Florida — a genuinely nice home. Below is what a closing-cost worksheet can look like, organized the way your Loan Estimate organizes it, with the funding fee shown at the first-use, $0-down default of 2.15%. Every figure is hypothetical and deliberately on the generous side — your real numbers come on your real Loan Estimate.
| Section A — Origination & Lender Charges | Hypothetical |
|---|---|
| Underwriting fee | $1,495 |
| Processing fee | $995 |
| Document preparation | $495 |
| Section B — Services You Cannot Shop For | Hypothetical |
|---|---|
| Construction appraisal (as-completed value) | $1,200 |
| Final completion inspection | $350 |
| Draw inspections (5 × $150) | $750 |
| Credit report | $120 |
| Flood certification | $25 |
| Tax service fee | $85 |
| VA funding fee (first use, $0 down — 2.15% default, typically FINANCED into the loan, not cash; $0 if exempt) | $10,750 |
| Section C — Services You Can Shop For | Hypothetical |
|---|---|
| Title insurance (owner's + lender's) | $3,000 |
| Settlement / closing fee | $795 |
| Survey | $650 |
| Pest inspection | $150 |
| Section E — Florida Taxes & Government Fees | Hypothetical |
|---|---|
| Documentary stamps on the note (0.35%) | $1,750 |
| Intangible tax (0.20%) | $1,000 |
| Recording fees | $350 |
| Section F — Prepaids & Escrows | Hypothetical |
|---|---|
| First year homeowner's insurance | $2,400 |
| Property tax escrow deposit | $1,200 |
| Builder's risk coverage (construction period) | $1,800 |
| Total hypothetical closing costs + prepaids (first-use funding fee) | $29,360 |
| Less: VA funding fee typically financed into the loan | − $10,750 |
| Cash-relevant total | $18,610 |
| If EXEMPT: funding fee is $0 — Total drops to $18,610, all of it cash-relevant | ✓ No fee |
Fully hypothetical illustration on a fictional property — deliberately over-estimated, not a quote, not an offer, and excluding financing costs that vary by scenario. The funding-fee percentages are current defaults set by the VA and subject to change; exemptions apply. Your actual figures appear on your Loan Estimate.
Enter any total project cost — see the hypothetical math
Land plus construction, any number you're imagining, and pick the funding-fee scenario that fits you. This scales the same over-estimated hypothetical worksheet to your figure. Estimates only — never a quote. For your real figures, review your Loan Estimate with our team; reviewed by Jim Blackburn, NMLS #1072866.
The VA funding fee and its exemptions are set by the U.S. Department of Veterans Affairs and are subject to change; the percentages on this page are current defaults, not guaranteed figures — confirm your exact fee, or your exemption, with the VA. With full entitlement the VA sets no maximum on the loan amount; any county-based figure applies only to reduced or partial entitlement. Every figure on this page is a hypothetical, deliberately over-estimated illustration — not a quote, not a Loan Estimate, and not an offer. Your actual costs appear on your official Loan Estimate. Jim Blackburn, NMLS #1072866. This page is educational and is not a commitment to lend or a guarantee of approval.