There is a way to have minimal VA closing costs if you are a qualified military member who is taking out a VA loan to purchase a home. You will have to build the closing costs into the purchase price of your home and then have the seller pay the costs out of the loan proceeds. The appraisal of your home must also be high enough to cover the increased purchase price.
Increasing the Purchase Price
VA requirements state that you can pay a lender only up to one percent to originate your loan. You can also pay loan discount points that are deemed to be reasonable by the VA. Once your lender gives you a Good Faith Estimate listing the amount of closing costs and prepaid expenses, you add the total amount of these charges to the price you agreed to pay the seller to buy the home.
For example, if your purchase price on the home was $100,000 and the closing costs and prepaid expenses were $3,000, you adjust the purchase price to $103,000 and have the seller pay the lender $3,000 to cover the costs and prepaids once you close on your loan.