What are the Closing Costs for a VA Loan?

Closing costs are the costs and fees associated with acquiring and finalizing a home purchase or refinance. Unfortunately, most of them must be paid before you get the keys to your new home. The VA mortgage program however, does an exceptional job of limiting what veterans can pay in closing costs. This benefit helps veterans make homeownership a possibility.

Who actually pays your closing costs often depends on what you’re able to negotiate with the person selling you the home. The VA has no cap on how much a home seller can contribute toward a buyer’s loan-related closing costs, but most lenders limit that amount to 4% of the selling price.  That being said, it is possible to ask the homeowner to cover ALL closing costs.  The lender can also contribute toward closing costs, but this most often coincides with an increase in the interest rate for the borrower.  Your lender can give you a cost benefit analysis in this case.

In the end, it’s really about what you and your Realtor can negotiate. You should also talk to your loan specialist for any suggestions or help when the time comes to negotiate an offer.  This is why it is VERY important to work with a realtor and lender you trust.

For more information regarding VA Loan, please see our BLOG links below.

Other VA Loan Questions:

 

The Chapman Lending Team at HomeBridge Financial is honored to help many veterans utilize their VA home loan benefit each and every year.  We ARE NOT a call center.  Our goal is to provide the best customer service in the industry along with the most competitive rates and fees.

Semper Fi, Dan Chapman CAPT, USMC (vet)

ChapmanTeam@HomeBridge.com          Call (760) 456-7139

Get a Free Rate Quote  –  Start an Online Application

 

Related Articles

One of the best parts of homeownership? You are in the driver’s seat when it comes to choosing home financing options. When it’s time to fund a renovation, you can pick from a variety of different home loans to help serve your needs, wants and goals. As the top-rated renovation…
Read More of the post What Renovation Loan Options Are Available to Me?

If you’ve served in the United States armed forces for a specific length of time or are the surviving spouse of a deceased service member, there are many benefits available to you as a homebuyer. One of these benefits is the VA Renovation Loan. It’s a great program created to…
Read More of the post The VA Renovation Loan – A Thank You to Our Nation’s Veterans

Who Qualifies for a VA Loan? In a sentence, VA loans are specialty mortgages offered exclusively to military service members and their families, and partially backed by the Department of Veterans Affairs. The details of who qualifies for a VA Loan, however, require a slightly longer explanation. If you plan…
Read More of the post About VA Loan Qualifications

Do I Qualify for a VA Loan? VA loans are specialty mortgages offered to military service members and their families and are partially backed by the Department of Veterans Affairs. To learn more details on who qualifies for a VA loan, keep reading. The VA Loan was created to ensure…
Read More of the post Who Qualifies for a VA Loan?