Financing in Roseville>Question Details

khunter, Real Estate Pro in Roseville, CA

Is the owner's title policy an allowable VA fee?

Asked by khunter, Roseville, CA Tue Nov 20, 2012

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Yes, the buyer/veteran is allowed to pay the owner's title policy.

With today's ultra low rates, one way we are helping VA buyers get their offer accepted in this day of low inventory and sellers wanting to see offers of cash or Conventional financing with large down payments is to offer the buyer a slightly higher interest rate, say 0.125% or 0.25%, and give them the credit towards closing costs (non-allowables and possibly more than just those). For as long as I can remember it has been customary in our market for the seller to pay the VA non-allowables on VA offers but in today's ultra-competitive market that makes it very difficult to get a VA offer accepted. This way the offer is stronger from the seller's perspective and it doesn't cost the buyer much on their monthly payment at all.

Just a little correction to John Burke's statement: "The following list provides examples of items that cannot be charged to the veteran as “itemized fees and charges.” Instead, the lender must cover any cost of these items out of its flat fee:"

This is not entirely accurate. It is true that the veteran cannot pay these fees but it is not a requirement that the lender pays it. Another party, such as the seller, agents, lender, etc, can pay the VA non-allowable fees. It is not a requirement that the lender pays them...

Sincerely,
Greg
0 votes Thank Flag Link Wed Nov 21, 2012
Teri is correct about the cost breakout.
Va, and Cal-vet have a cheat sheet which your lender could make available to you or your agent. When in the process of negotiations you need to know all of the items that fall into the non allowable category.
0 votes Thank Flag Link Tue Nov 20, 2012
My understanding is yes a VA buyer can pay the owners title policy costs.

The escrow fee needs to be paid by seller.

Check with your lender to be certain.
0 votes Thank Flag Link Tue Nov 20, 2012
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