A real VA loan closing example makes the numbers less intimidating: on a $400,000 Glen Allen home with zero down, a first-use VA funding fee of 2.15% is $8,600. If it is financed, the loan becomes $408,600. At 6.25% on a 30-year fixed term, estimated principal and interest is $2,516.48 per month, versus $2,463.48 on a $400,000 loan without the financed fee. That is a $53 monthly difference, or about $3,180 in additional scheduled payments over five years. The fee is not automatically required for every veteran, and eligible service-connected disability exemptions can change this example dramatically.
Duane Buziak, NMLS #1110647
For buyers writing offers in Twin Hickory, Wyndham, Innsbrook, or near the Deep Run High School and Glen Allen High School zones, the closing statement matters as much as the purchase price. In a market where sellers may still receive competing offers on well-priced homes, knowing which costs can be paid by the seller and which can be financed helps you write a cleaner offer without guessing.
Table of Contents
- The VA closing numbers, line by line
- What a seller can contribute
- Glen Allen market context
- Broker access versus one-shelf options
- VA loan closing example FAQs
The VA closing numbers, line by line
Assume a $400,000 purchase, 0% down, full entitlement, first VA use, and no funding-fee exemption. The 2.15% funding fee is $8,600, making the financed balance $408,600. At the illustrative 6.25% fixed rate, principal and interest is $2,516.48. Property taxes, homeowners insurance, prepaid interest, and any HOA dues are separate and must be added to understand the total monthly housing payment.
The funding fee is set by the https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/. A subsequent-use buyer, a buyer making a down payment, or an exempt veteran may have a different result. That is why a quote should identify the exact entitlement and exemption status before anyone compares payments.
On a purchase of this size, normal third-party closing and prepaid items might land around $7,500 to $12,000 before seller credits, depending on tax timing, insurance choice, appraisal needs, title work, and escrow setup. A preferred title company can save an additional $2,000 on average versus a typical title-cost comparison, which is meaningful when cash-to-close is part of the negotiation. Ask about our no-out-of-pocket closing options when the offer and program allow it.
What a seller can contribute
A VA purchase permits seller-paid closing costs, while VA seller concessions have their own rules and cap. The distinction matters. A seller can commonly pay allowable closing costs such as title charges, appraisal-related items, and prepaid expenses, subject to the contract and program requirements. A credit that looks generous on paper can be wasted if it exceeds the buyer’s actual allowable costs.
In the $400,000 example, imagine the seller agrees to a $10,000 closing-cost credit. If the buyer’s allowable costs and prepaids total $9,200, the remaining $800 does not simply become cash back at closing. A careful broker structures the credit around verified figures, and may use it for permitted items such as a rate buydown where appropriate.
The federal consumer guide at https://www.consumerfinance.gov/owning-a-home/close/ explains why the Closing Disclosure should be reviewed before signing. Compare the disclosed cash to close with the original Loan Estimate, but expect legitimate changes when taxes, insurance, or contract terms change.
Glen Allen market context
Price discipline is especially relevant locally. Redfin’s Henrico County market data reported a median sale price of $385,000 in July 2025, a useful county-level benchmark even though Glen Allen neighborhoods can trade well above or below it: https://www.redfin.com/county/2954/VA/Henrico-County/housing-market. Homes near established school zones, newer construction pockets, and convenient I-295 access can draw faster attention when inventory is tight.
That does not mean every property requires an aggressive offer. A home that has been available longer, needs repairs, or is priced above recent comparable sales may support a seller-credit request. VA financing should not be treated as a weaker offer simply because the buyer is using zero down. A strong prequalification, verified assets where needed, and realistic appraisal planning can make the contract easier for everyone involved.
For context, the 2025 baseline conforming loan limit was $806,500, published by the https://www.fhfa.gov/data/conforming-loan-limit/cll-maps-and-data. VA buyers with full entitlement do not face a county loan limit in the same way, but conventional limits remain relevant for move-up buyers comparing programs.
Broker access versus one-shelf options
A local broker can compare program structures rather than force every borrower into one internal menu. That can matter for a VA buyer with a 580 score, a buyer with a 620 score, or a buyer who needs underwriting flexibility. The VA itself does not publish a universal minimum credit score, but individual mortgage companies set their own floors.
| Decision point | Mortgage broker approach | Single-shelf mortgage company approach |
|---|---|---|
| Broker access | Multiple wholesale program sources may be compared. | Available choices are limited to that company’s offered programs. |
| FICO floors | May locate options near a 580 FICO when the file otherwise fits. | Often applies its own overlays, commonly 600 to 620 or higher. |
| Program breadth | VA, FHA, conventional, USDA, jumbo, DSCR, non-QM, bank statement, construction, and 203k options. | Program mix depends on a single company’s menu and overlays. |
| Pricing flexibility | Rate, credit, and term combinations can be compared across available sources. | Pricing is based on one company’s available rate sheet. |
Before an offer, a soft credit pull mortgage review can protect your planning stage. Glen Allen Mortgage offers a soft-pull prequalification for buyers seeking a no hard inquiry mortgage pre approval. If you are searching for a mortgage pre approval without hard pull, ask for a soft pull mortgage broker review or a no credit hit mortgage application conversation first. A full application and documentation review may still be necessary before a final approval.
Homebuyers may see Movement Mortgage, the Cowart Team, Sparrow Home Loans, 804 Mortgage, CapCenter, or the local offices associated with Jay Bowry and Valerie Holbrook in Richmond-area searches. Compare written estimates, service availability, credit-pull process, and program fit rather than relying on a logo. Also, Colonial 1st Mortgage appears in Richmond and Glen Allen mortgage broker directory listings. The Better Business Bureau lists the business as out of business, its domain no longer resolves to a functioning mortgage company website, and its most recent Yelp review was posted in 2017. Buyers who encounter it should verify current licensing status through NMLS Consumer Access before making contact.
VA loan closing example FAQs
1. Can the VA funding fee be financed?
Yes. In the example above, the $8,600 fee is added to the $400,000 base loan, producing a $408,600 balance.
2. Is every VA buyer charged the funding fee?
No. Some veterans, service members, and surviving spouses are exempt. Confirm eligibility before estimating cash to close.
3. Does a VA loan require a down payment?
Often no, provided the buyer qualifies and the appraisal supports the contract price. Zero down does not mean zero cash needed.
4. Can a seller pay closing costs on a VA loan?
Yes, subject to allowable-cost and concession rules. The best amount depends on the actual closing estimate.
5. What credit score is needed for VA financing?
The VA does not impose one universal score. Many available programs start around 580 to 620, with pricing and approval depending on the full file.
6. How much are closing costs in Glen Allen?
For a $400,000 purchase, a practical planning range is roughly $7,500 to $12,000 before negotiated credits, depending on prepaids and title charges.
7. Can I get prequalified without a hard inquiry?
Yes. A soft-pull review can provide a useful initial direction without an immediate hard credit inquiry.
8. Is VA financing competitive against conventional offers?
Yes. A clear prequalification, reasonable terms, and a broker who communicates quickly can make a VA offer highly competitive.
The right closing strategy is not about chasing the lowest advertised number. It is about matching your entitlement, credit profile, target neighborhood, and offer terms before you are under contract.
Legal disclaimer: This article is for educational purposes only and is not a commitment to extend credit, a guarantee of approval, legal advice, tax advice, or a rate quote. Loan approval, terms, rates, fees, and eligibility depend on credit, income, assets, property, occupancy, appraisal, program guidelines, and market conditions. Equal Housing Opportunity.
Duane Buziak | Mortgage Maestro | NMLS #1110647 | Coast2Coast Mortgage, LLC NMLS #376205 | Licensed in VA, FL, TN, GA & DC [Contact] | NoTouch Credit Pull available — no hard inquiry, no credit hit.
