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Question for those who recently closed on a VA Loan: Out of Pocket Fees?

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Question for those who recently closed on a VA Loan: Out of Pocket Fees?

I've hit the 6 month out mark from when I'll start my mortgage process and I'm hoping some members who've recently closed on VA loan purchases can help me out. We're going for 0% down and I'm VA rated 10%+ so we'll avoid the VA funding fee. 

 

What did your out of pocket fees look like? 

 

My last mortgage was FHA well over a decade ago in a buyers market and the sellers made a lot of concessions. Not much out of pocket on our end from what I recall. Only thing I remember is the home inspection. 

 

 

 

    

Message 1 of 4
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Established Contributor

Re: Question for those who recently closed on a VA Loan: Out of Pocket Fees?

Hello my fellow Vet,

 

The VA is the best loan in the world. In your case with your service connected disability rating, even better! No VA Funding Fee. Man! I don't have a disability rating, my VAFF was over near $8K when I bought. Think about that savings over the life of the loan you'll have.

 

Getting back to your question, depending on where you live, that will determine how aggressive you can get with the seller paying your closing costs and any concessions. Remember, the VA loan is the only loan where the seller can actually payoff debt for the Vet, the VA allows seller concessions up to 4%. And that's on top of your closing costs!

 

Closing costs to include your Prepaids and Reserves (setting up your impound or escrow account are generally 3% of the sales price. The VA loan is the costly buyer a seller to sell to. The VA requires a Clear Termite Report, where FHA and Conventional loan don't. In some cases this could cost the seller a lot of dough. Also, a Vet can't pay a Escrow Fee, etc. 

 

But if you look online, you will find price reductions across the nation. I mean it's summer time and usually the prices are generally going up. That's not necessary the case right now. Yes there are pockets in the nation where inventory is low and demand is high. But generally speaking, I am seeking sellers more willing to pay closing costs. My best guess is,  7 out 10 of my borrowers getting their closing costs paid. At least for now.

 

Best wishes to you!

Mortgage Banker - Since 1988 offering FHA, VA, USDA, Conventional, Jumbo and Portfolio Loan Products. Licensed in AL, AZ, CA, FL, GA, IL, IA, IN, KY, LA, MI, MO, NC, NE, NV, NJ, OH, OK, OR, PA, SC, TN, TX, VA and WI.
Message 2 of 4

Re: Question for those who recently closed on a VA Loan: Out of Pocket Fees?

Thanks for the great info! 

 


@homeloanexpert wrote:

Hello my fellow Vet,

 

The VA is the best loan in the world. In your case with your service connected disability rating, even better! No VA Funding Fee. Man! I don't have a disability rating, my VAFF was over near $8K when I bought. Think about that savings over the life of the loan you'll have.

 

Getting back to your question, depending on where you live, that will determine how aggressive you can get with the seller paying your closing costs and any concessions. Remember, the VA loan is the only loan where the seller can actually payoff debt for the Vet, the VA allows seller concessions up to 4%. And that's on top of your closing costs!

 

Wow! I was under the impression 4% was specifically for the closing costs. 

 

Closing costs to include your Prepaids and Reserves (setting up your impound or escrow account are generally 3% of the sales price. The VA loan is the costly buyer a seller to sell to. The VA requires a Clear Termite Report, where FHA and Conventional loan don't. In some cases this could cost the seller a lot of dough. Also, a Vet can't pay a Escrow Fee, etc. 

 

But if you look online, you will find price reductions across the nation. I mean it's summer time and usually the prices are generally going up.

 

We'll be ready to start the process in December since we can end our lease or change it to month-by-month in Feburary. I've heard those months are a good time to be on the buyers side of the mortgage process.  

 

That's not necessary the case right now. Yes there are pockets in the nation where inventory is low and demand is high. But generally speaking, I am seeking sellers more willing to pay closing costs. My best guess is,  7 out 10 of my borrowers getting their closing costs paid. At least for now.

 

In a situation where the funding fee is waived, no down payment, and the seller pays the closing costs, what would that (potentially) leave the Vet responsible for? 

 

Best wishes to you!


 

Message 3 of 4
Established Contributor

Re: Question for those who recently closed on a VA Loan: Out of Pocket Fees?

On my closed VA loans in this month, the borrower's only out of pocket cost was the Home Inspection. All other fees were paid by the seller to include the VA Appraisal.

Mortgage Banker - Since 1988 offering FHA, VA, USDA, Conventional, Jumbo and Portfolio Loan Products. Licensed in AL, AZ, CA, FL, GA, IL, IA, IN, KY, LA, MI, MO, NC, NE, NV, NJ, OH, OK, OR, PA, SC, TN, TX, VA and WI.
Message 4 of 4