source:
  type: guide
  id: va-m26-7-ch08-t07
  authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 8, Topic 7 — Fees and
    Charges That Can Be Included in the Loan
  description: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 8, Topic 7 — Fees and
    Charges That Can Be Included in the Loan.
  coverage_tier: operative
obligations:
- id: va-m26-7-ch08-t07-full
  canonical_id: va-m26-7-ch08-t07-full
  section: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 8, Topic 7 — Fees and Charges
    That Can Be Included in the Loan
  type: do
  tags:
  - regulator-direct
  - va
  - va-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 8, Topic 7 — Fees and
      Charges That Can Be Included in the Loan
    source_class: va-handbook
    source_url: https://www.benefits.va.gov/warms/pam26_7.asp
    snapshot_id: 8f28fe2bcf1f2e28
    fetched_at: '2026-05-23T01:53:53Z'
    content_hash: sha256:44aecfeb4beae872a5dbb59f87b324e1fc8730143eaf4185b6cb0d71698e60f3
    paragraph_quote: '7. Fees and Charges That Can Be Included in the Loan Amount
      Change Date November 8, 2012, Change 21 • This section has been updated to make
      minor grammatical edits. a. All VA Loans For all types of VA loans, the loan
      amount may include the VA funding fee. No other fees and charges or discount
      points may be included in the loan amount for regular purchase or construction
      loans. Only refinancing loans may include other allowable fees and charges and
      discount points in the loan amount. Note: Maximum loan amounts are discussed
      in section 3 of chapter 3. b. “Cash-out” Refinancing Loans For “cash-out” refinancing
      loans, allowable fees and charges and discount points (as discussed in section
      2 of this chapter) may be paid from cash proceeds of the loan. Only the VA funding
      fee (and the cost of any energy efficiency improvements) can be added to increase
      the loan amount. c. IRRRLs The following fees and charges may be included in
      an IRRRL: • Any allowable fees and charges discussed in section 2 of this chapter.
      This includes closing costs from the “Itemized Fees and Charges” list, the funding
      fee, and the lender’s flat charge. • However, there is one limitation unique
      to IRRRLs: While the borrower may pay any reasonable amount of discount points
      in cash, no more than two discount points can be included in the loan amount.
      Continued on next page VA Pamphlet 26-7, Revised Chapter 8: Borrower Fees and
      Charges and the VA Funding Fee 8-16 7. Fees and Charges That Can Be Included
      in the Loan Amount, Continued d. Other Refinancing Loans The following information
      applies to any loan to refinance: • a construction loan, • an installment land
      sales contract, or • a loan assumed by the veteran at an interest rate higher
      than that for the proposed refinancing loan. The loan amount may include: •
      any allowable fees and charges discussed in section 2 of this chapter, and •
      reasonable discount points. Note: Maximum loan limits may not allow inclusion
      of the full amount of these items. The maximum loan amount will be the lesser
      of the • sum of the outstanding balance of the loan being refinanced plus allowable
      fees and charges (other than the funding fee) plus discount points, or • VA
      reasonable value of the property, plus • VA funding fee, plus • cost of any
      energy efficiency improvements. VA Pamphlet 26-7, Revised Chapter 8: Borrower
      Fees and Charges and the VA Funding Fee 8-17'
  judgment: false
