Question: What Does The Seller Have To Pay On A VA Loan?

Who pays for termite treatment on a VA loan?

While the VA doesn’t specify who is responsible for paying for treatment of termite damage, some states and lenders require the seller to pay for repairs up to a certain dollar amount.

The pest inspection is the only one the VA sometimes requires that the seller pay for..

Can I get my VA funding fee refunded?

You may be eligible for a refund of the VA funding fee if you’re later awarded VA compensation for a service-connected disability. … If you think you’re eligible for a refund, please call your VA regional loan center at 877-827-3702. We’re here Monday through Friday, 8:00 a.m. to 6:00 p.m. ET.

What is the maximum seller concession for a VA loan?

4%Seller concessions are when a VA home buyer asks the home seller to pay costs associated with the VA Loan on the home buyer’s behalf. The VA permits seller concessions, but requires that seller concessions do not exceed 4% of the loan amount.

Why are VA loans bad for sellers?

VA loans come with red tape, appraisal delays and fees borne by sellers instead of buyers — all reasons offers are being rejected, agents say. In addition, real estate agents and veterans say, some sellers reject offers because of misconceptions about the VA program.

How long does it take to close on a house with a VA loan?

40 to 50 daysMost VA loans close in 40 to 50 days, which is standard for the mortgage industry regardless of the type of financing. In fact, dig into the numbers a bit and you don’t find much difference between VA and conventional loans. Let’s review five key factors that could affect the timeline of a VA loan purchase.

What closing costs are not allowed on a VA loan?

The VA limits seller-paid costs to 4% of the loan amount, and those covered costs can’t include lender fees. Instead, the seller may pay the VA funding fee, prepaid property taxes and insurance, discount points and any judgments or credit balances that may prevent you from qualifying for your loan.

Can a seller refuse to accept a VA loan?

“The issue of some sellers not accepting offers with VA or FHA financing is primarily about competition,” said Brian Koss, executive vice president of the Mortgage Network in Danvers. “If sellers have enough other offers, they’ll push aside FHA and VA offers in favor of one with a bigger down payment. ”

Do you have to pay closing costs on a VA loan?

Like every mortgage, the VA loan comes with closing costs and related expenses. VA loan closing costs can average anywhere from 3 to 5 percent of the loan amount, but costs can vary significantly depending on where you’re buying, the lender you’re working with and more.

How can I avoid closing costs with a VA loan?

Another way to reduce or eliminate VA loan closing costs is having the lender provide a lender credit….Active Duty.Reservist – Active.Individual Ready Reserve.Veteran.Retired Military.Spouse is Active Duty.Spouse is Reserve/Guard.Spouse is a Veteran.More items…

What are the non allowable fees on a VA loan?

Attorney fees charged by the lender. … Real estate broker or agent commissions or fees. Fees for appraisals requested by the lender or seller for a Reconsideration of Value.

Does the seller have to pay for a termite inspection on a VA loan?

Basically, on a purchase, someone besides the Veteran must pay for the VA termite inspection. Typically, the seller pays the cost, but it may also be the listing agent, buyer’s agent, or even the lender (as long as the Veteran does not pay it.) Most termite inspection invoices range from $50 – $100.

What seller concessions are allowed for a VA loan?

What is the maximum Seller’s Concession allowed with a VA mortgage? The maximum seller’s concession amount allowed on an FHA loan or on a V.A. loan is up to 6% of the total purchase price of the home. In many cases the 6% allowed amount is greater then the total of the closing costs.

How does a VA loan affect the seller?

Those costs must be paid by someone and often the buyer asks you, the seller to pay for them. VA loans do allow for sellers to pay up to 4.00 percent of the sales price of the home toward buyer’s closing costs. … Other than closing costs, VA loans are like any other mortgage program.

Do VA appraisers lowball?

Sometimes the VA appraisal is lower than the asking price, and sometimes it is higher. … When the appraisal is lower than the asking price, it essentially means that the lender does not place a value on the home as high as the seller.

Do VA appraisals usually come in low?

VA appraisals are much like regular appraisals — an appraiser will come out to the house you’re looking to buy and establish its value. … If a VA appraisal comes in low, problems can occur. For example, a home on the market for $275,000 can get a VA offer with all $275,000 financed.