The maximum late charge on FHA loans is 4% of the overdue amount for loans assigned a case number on or after March 14, 2016. This late charge applies starting 15 days after the due date, and lenders can begin charging it on the 17th day of the month of the late payment. For VA loans, there is no specific maximum late charge percentage stated in general VA guidelines, but late fees must comply with state usury laws. One source mentions a lender's maximum allowable flat late charge of 1% of the loan amount, which includes the VA funding fee. Late fees cannot be charged after 30 days of non-payment if the borrower has not made a payment. Thus:
- FHA loans: Up to 4% of overdue principal and interest (P&I) after 15 days late (for loans after March 14, 2016).
- VA loans: Late charges are allowed but typically limited by state usury laws, with some lenders charging up to 1% of the loan amount as a flat fee.
This provides the maximum late charge limits for FHA and VA loans as per 2025 rules and regulations.