Va loan and closing cost: Can seller pay them for you? How?

Ok,

My husband and I are in the works on trying to buy our first home-

We will be using a VA loan- first time using it.

The closing cost is one of our biggest problems as they can sum up quickly- we would like to know how we can avoid the closing cost and not have to pay them- by possibly having the seller paying...?

Any help would be appreciated...

7 Answers

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  • Nikki
    Lv 4
    1 decade ago
    Favorite Answer

    We are trying to get an fmha loan and I was wondering the same thing. I know that I need to have my closing costs and the required rural development repairs fees included in my loan and I am trying to figure out how much the will both be so I will know what to offer.

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  • 1 decade ago

    Actually, you should be checking with your loan officer. There may be restrictions regarding VA loans and closing costs. But to give you a quick run down of seller paying buyer's closing costs, let's say for ease of understandings that a seller has accepted an offer (without included sellers closing costs) for $100,000. So normally you would have a mortgage for $100K. Now you realize that you don't have the money for closing costs. But the seller MUST get the $100,000 in order to pay off his mortgage and costs. So you would have to re-write the offer or an addendum to the offer raising the offer to say $105,000 and have the closing costs come out of the seller's proceeds. Now is the seller actually paying the closing costs? No, you are since now you will be actually getting a mortgage for the $105,000. The house will have to appraise at the higher amount as well.

    Depending on the type of mortgage you are getting, the amount that the seller can "contribute" (although in fact they are not really contributing - it is only a bookkeeping arrangement) may be limited. I have seen it as high as 6%, but sometimes as low as 3%. Check with the loan officer that you are working with and they should be able to tell you.

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  • 1 decade ago

    I think there are some restrictions involved with what the sellor can and can't pay when dealing with VA loans. If you are working with a realitor, I would talk it over with them. If no realitor is involved, then check directly with the owner.

    These things usually can be worked out in your favor as long as you have all arrangements made before the "closing". I am not certain of this, but I think the seller can absorb up to 3

    %. Please check this with your realtor, I think it is all going to be okay as long as the property appraisal comes back with an adequate value.

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  • 1 decade ago

    Definitely write it into the offer that you want the seller to pay all closing costs. It's a buyer's market out there and the ball is in YOUR court!

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  • Jason
    Lv 6
    1 decade ago

    sellers can pay up to 6% of the sales price toward closing costs. you just write the contract up with the amount of the closing costs included in the sales price not to exceed 6%

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  • Anonymous
    1 decade ago

    Here are many first time home buyers programs available. You may start by calling the city Housing Office in your city or the county housing office<!--in the county in which you reside.If these offices don't have the programs you are seeking they will be able to tell you what agency in their jurisdiction has them.

    http://best-loans.awardspace.com/homebuyerprogram....

    Once you have located the first time home buyers program and who operate it, that agency normally have a list of lenders, banks-->mortgage brokers or institutions that are authorize to administer the program. These agencies are normally listed on a pamphlet.

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  • 5 years ago

    Va loan and closing cost: Can seller pay them for you? How?

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