Forgotten Your Password?

Need to Register?

Question Icon

What types of costs are associated with getting a VA Loan other than the loan itself?

by semira_biggs780 from Altadena, California. Nov 20th 2015 Reply


John A Soricelli Jr (John A Soricelli Jr)
#166 ranked lender in California - 151 contributions

Thank you for your questions. The costs associated with a VA loan will vary depending on a few factors. Items such as (1) Are you exempt from the VA funding fee due to a disability? (2) Have you used your VA benefit before? (3) Are you purchase a new home or refinancing? (4) What is your credit profile? The VA limits the majority of the fees to a maximum of 1% and then there are also additional funds required to "pre-pay" certain items like taxes and insurance (start an impound account), as well as mortgage interest before your first payment is due. The majority of VA loan's we provide our client have a "lender credit" which is used to offset these costs and funds required. This does come as a result of a slightly higher interest rate and depending on your specific scenario may or may not be the best choice. There is truly a lot which goes into the decision making process, as well as the total costs associated. If you would like to review your specific scenario as well as discuss the above in detail please feel free to reach me at 949-478-FUND (3863) or visit our website at www.ThinkJandJ.com. John A Soricelli Jr. NMLS #235274

Nov 20th 2015
2
0
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,930 contributions

All mortgage loans essentially have the same base closing costs that need to be paid. Appraisal, credit report, underwriting, deed taxes, origination, title company, etc. From there, you now may have a slight difference based on program. You specifically asked about VA loans. VA mandates that a couple normal fees not be allowed to be charged to the a vet, saving you a few hundred dollars in fees. VA also has a "funding fee" that varies depending on purchase, refinance, first use of a VA loan, or subsequent use of a VA loan, and if you have a 10% VA disability or more. The funding fee can be rolled into the new loan, so it is not an out of pocket expense. Contact a local mortgage broker for exact costs for you. In MN, WI, and SD, you can contact me at www.VA-IRRRL-Loan-MN.com

Nov 21st 2015
1
0
Ralph Richard Guertin (ralph@absolutelowrates.com)
#1 ranked lender in Florida - 796 contributions

No a lot in information to go on, but in general most loans have settlement costs between 2-4% and again depends on loan amount and other variables...I offer the BEST VA rates and costs and lend in CA. Feel free to call and I can give you a more actuate estimate Ralph Guertin Bayburg Financial 954-274-7725

Nov 21st 2015
1
0
Sean Young (SeanYoung)
#2 ranked lender in Colorado - 1,112 contributions

Upfront you will have an appraisal fee, you will possibly have a VA funding fee that is applied to your loan balance,The lender can charge a maximum flat charge of 1% of the loan amount (or greater percentage in the case of construction loans) and it's intended to cover all of the lender's costs and services which are not reimbursable as "itemized fees and charges." Then you will have third party fees for title insurance, and escrows to set up your property tax, insurance and days of interest. The lender may pay third parties for services or do as it wishes with the funds from the flat charge, as long as the lender complies with the Real Estate Settlement Procedures Act (RESPA). Fees that cannot be charged on a VA loan are notary fees, commitment fees or marketing fees of any secondary purchaser of the mortgage and preparation and recording of assignment of mortgage to such purchaser, trustee's fees or charges, loan application or processing fees, fees for preparation of truth-in-lending disclosure statement, fees charged by loan brokers, finders or other third parties whether affiliated with the lender or not, and tax service fees.

Nov 21st 2015
1
0
William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,722 contributions

More info needed, but in general, VA loan costs are actually lower than any other loan. VA has a strict rule as to which fees can and cannot be charged to the veteran. Here's the link to VA's web page outlining their rules regarding closing costs and fees: http://www.benefits.va.gov/WARMS/docs/admin26/handbook/ChapterLendersHanbookChapter8.pdf Also, understand that it's impossible for anyone here to give you a number.. Some fees associated with a purchase are "Fixed Fees" meaning, regardless of what whether your buying a $100K home or a $500K home the fee is the same.. Other fee's are "Variable Fees", meaning they can be a percentage of the sale price or loan amount... Example: $100K loan amount charging 1% loan origination= $1,000 but a $500K loan amount at 1% is $5,000. I hope this helps... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Nov 23rd 2015
1
0
Subscribe to our news feed.