Yes, the owner's title premium is a VA allowable fee.
Here is the list of VA non-allowables.
The following list provides examples of items that cannot be charged to the
veteran as â€œitemized fees and charges.â€ Instead, the lender must cover any
cost of these items out of its flat fee:
â€¢ lenderâ€™s appraisals
â€¢ lenderâ€™s inspections, except in construction loan cases
â€¢ loan closing or settlement fees
â€¢ document preparation fees
â€¢ preparing loan papers or conveyancing fees
â€¢ attorneyâ€™s services other than for title work
â€¢ interest rate lock-in fees
â€¢ postage and other mailing charges, stationery, telephone calls, and other
â€¢ amortization schedules, pass books, and membership or entrance fees
â€¢ escrow fees or charges
â€¢ notary fees
â€¢ commitment fees or marketing fees of any secondary purchaser of the
mortgage and preparation and recording of assignment of mortgage to such
â€¢ trusteeâ€™s fees or charges
â€¢ loan application or processing fees
â€¢ fees for preparation of truth-in-lending disclosure statement
â€¢ fees charged by loan brokers, finders or other third parties whether affiliated
with the lender or not, and
â€¢ tax service fees.
You can find more information here:
Please feel free to contact me for more information or help. You can also find info on my VA Mortgage website by clicking the link below.
Take a look at my recommendations here on Trulia from some of past VA clients.
Senior Mortgage Banker
Peoples Bank & Trust
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 â€œitemized fees and charges.â€ 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...
Sheryl Arndt, Real Estate Broker â€“ Sr. Loan Officer CA only
REO & Short Sale Specialist
20+ Years Experience
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.