Most loan programs let the lender set its own fees. VA does not. Its regulation starts from the opposite rule: no charge may be made against a Veteran except those it expressly allows, and the lender must certify it has not charged anything more.
38 CFR 36.4313 lets the Veteran pay reasonable and customary amounts for:
Fees of the VA appraiser and VA-designated compliance inspectors.
Title examination and title insurance, recording fees and recording taxes, and a survey if required.
The credit report, and the actual charge for a third-party flood zone determination.
The current year's share of taxes and assessments, the initial escrow deposit, and required hazard insurance.
On top of those items, a lender may charge a flat charge of no more than 1 percent of the loan amount, and that charge is in place of every other origination cost not specifically allowed. Processing, underwriting and document fees come out of that 1 percent. They cannot be added to it.
The regulation treats these as maximums. A lender may itemize differently, as long as the total does not exceed what the schedule allows.
Two extras apply only to construction and repair: up to 2 percent for supervising construction advances when most of the loan is paid out during construction, and in some alteration and repair loans an additional flat charge of up to 1 percent.
On a loan to buy or build a home, the costs of closing and prepaid items may not be included in the loan. They are paid in cash or by someone else, such as the seller.
No brokerage or service charge may be charged against the Veteran or the loan proceeds except as the regulation allows, and no charge may be made for obtaining the VA guaranty itself.
Discount points to buy down the rate are a separate subject, covered on VA discount points. Taking over a seller's loan instead is on VA loan assumption.
The law: 38 CFR 36.4313(a)-(d), Charges and fees. Not legal advice; VA decides eligibility. Not a commitment to lend.
A short call checks your eligibility, what your service qualifies you for, and what the law lets a lender charge you, before you commit to anything.