Discount Points and Loan Origination Fee

The costs associated with obtaining a VA loan are regulated to protect the veteran. Lenders may charge a loan origination fee, but it is generally capped at 1% of the loan amount. Regarding discount points (fees paid to lower the interest rate), the VA allows these to be paid by the veteran, the seller, or other parties. Negotiation is key here; often, veterans will ask sellers to pay these points and other closing costs to minimize the cash needed to close the deal.