Monday, February 19, 2018

5 Things You Didn't Know a VA Loan Could Do for You (4 of 5)

4. Limited closing costs

Legally, veterans are allowed to pay for certain closing costs, which include the following:
  • Appraisal
  • Credit report
  • Origination fee
  • Recording fee
  • Survey
  • Title insurance
But there are some fees that veterans are not allowed to pay. And the VA allows lenders to charge no more than 1% to cover the costs of originating and underwriting the loan.
So for example, if the purchase price is $280,000, the veteran might offer $300,000 and ask for 3% back to cover the closing costs.
“In this way the veteran is essentially financing their closing costs into the loan, meaning less out of pocket at the start,” Dinsmore explains.

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