Veteran's Administration non allowable fees include those for termite or pest inspection, mortgage broker fees, Realtor commission and prepayment penalties, among others. VA non allowable fees are costs that the Veteran's Administration does not allow veterans to pay when purchasing a home with a VA loan, according to The House Team.
The Veteran's Administration uses two different methods to calculate non allowable fees. The method used depends on if the mortgage lender charges the veteran a 1 percent origination fee. The Veteran's Administration believes that the origination fee's intention is to cover home buying costs such as notary fees, additional lender-required appraisals, interest rate lock-in fees, escrow fees and loan application fees, describes The House Team.