Here are some highlights about the Va guaranteed loan and purchaseshould you choose to :
accept a VA contract.
Veterans' closing costs are limited by VA
The contract must also allow the veteran to "escape" from the contract without penalty if he/she is unable to obtain a VA loan.
The seller can pay for closing costs. There is a requirement that seller concessions do not exceed 4%, but only certain items are considered as part of the concession; i.e., payment of pre-paids, VA funding fee, payoff of credit balances or judgments on behalf of the veteran, funds for temporary buydowns (not discount points).
The veteran is not allowed to pay for the wood destroying insect (termite) report; it is generally paid by the seller.
An appraisal is required to help ensure that any property which will become the security for a VA-guaranteed loan
â€¢ has a value of at least as much as the loan amount, and
â€¢ is in a condition acceptable to VA.
Property in a badly deteriorated condition is not eligible for appraisal unless VA agrees there is a reasonable likelihood that it can be repaired to meet VA Minimum Property Requirements (MPRs) prior to loan closing.
The veteran can pay a maximum of:
â€¢ reasonable and customary amounts for any or all of the â€œItemized Fees and Chargesâ€ designated by VA, plus
â€¢ a 1 percent flat charge by the lender, plus
â€¢ reasonable discount points.
â€¢ The veteran can pay the fee of a VA appraiser and VA compliance inspectors.
â€¢ The veteran can also pay for a second appraisal if he or she is requesting reconsideration of value.
â€¢ The veteran cannot pay for an appraisal requested by the lender or seller for reconsideration of value.
â€¢ The veteran cannot pay for appraisals requested by parties other than the veteran or lender.
Recording Fees The veteran can pay for recording fees and recording taxes or other charges incident to recordation.
Credit Report The veteran can pay for the credit report obtained by the lender.
For Automated Underwriting cases, the veteran may pay the evaluation fee of $50 in lieu of the charge for a credit report. For â€œReferâ€ cases, the veteran may also pay the charge for a merged credit report, if required.
Prepaid Items The veteran can pay that portion of taxes, assessments, and similar items for the current year chargeable to the borrower and the initial deposit for the tax and insurance account.
Hazard Insurance The veteran can pay the required hazard insurance premium. This includes flood insurance, if required.
Flood Zone Determina-tion The veteran can pay the actual amount charged for a determination of whether a property is in a special flood hazard area, if made by a third party who guarantees the accuracy of the determination.
The veteran can pay a charge for a life-of-the-loan flood determination service purchased at the time of loan origination.
A fee may not be charged for a flood zone determination made by the lender or a VA appraiser.
Survey The veteran can pay a charge for a survey, if required by the lender or veteran.
Any charge for a survey in connection with a condominium loan must have the prior approval of VA.
Continued on next page
2. Fees and Charges the Veteran-Borrower Can Pay, Continued
c. Itemized Fees and Charges (continued)
Title Examination and Title Insurance The veteran may pay a fee for title examination and title insurance, if any.
If the lender decides that an environmental protection lien endorsement to a title policy is needed, the cost of the endorsement may be charged to the veteran.
Special Mailing Fees for Refinancing Loans For refinancing loans only, the veteran can pay charges for Federal Express, Express Mail, or a similar service when the saved per diem interest cost to the veteran willexceed the cost of the special handling.
VA Funding Fee Unless exempt from the fee, each veteran must pay a funding fee to VA.
Mortgage Electronic Registration System (MERS) Fee The veteran may pay a fee for MERS. MERS is a one-time fee for the purpose of electronically tracking the ownership of the beneficial interest in a loan and its servicing rights.
Other Fees Authorized by VA Additional fees attributable to local variances may be charged to the veteran only if specifically authorized by VA. The lender may submit a written request to the RLC for approval if the fee is normally paid by the borrower in a particular jurisdiction and considered reasonable and customary in the jurisdiction.
Whenever the charge relates to services performed by a third party, the amount paid by the borrower must be limited to the actual charge of that third party.
That is all it would let me put in here you can get more information here :http://www.homeloans.va.gov/
and on my blog: http://www.trulia.com/blog/david_chamberlain/2009/08/what_fi