Closing costs associated with a VA home loan offer flexibility in terms of negotiation and payment responsibilities. Buyers, sellers, or both parties can bear these costs, providing room for financial arrangements that suit the specific transaction. Notably, the VA funding fee, appraisal costs, and prepaid taxes and insurance are components of closing costs.

Buyers can negotiate with sellers to cover various fees, such as the VA funding fee, loan origination fee, loan discount points, credit balances or judgments, VA appraisal fees, state and local taxes, title insurance, and recording fees. This flexibility allows for a tailored agreement that aligns with the preferences and financial capabilities of both parties involved.

It’s important to note that while sellers can contribute to closing costs, the VA imposes a limit on the extent of seller concessions. Sellers cannot pay more than 4% of the total home loan amount in concessions. This limitation ensures a balance in the financial responsibilities between the buyer and seller, preventing excessive concessions that could potentially impact the overall integrity of the loan transaction.

If you are currently in a transaction with a mortgage company, give us a call and let us beat your current scenario! With our access to over 170 wholesale lenders nationwide, we can find a lender that fits your exact needs.