Even when utilizing 100% financing, a Veteran borrower will still have closing costs that include lender, title, and recording fees, as well as pre-paid escrow account items for homeowner’s insurance and property taxes. Both programs allow for the seller to pay up to 4% of the loan amount towards the Veteran borrower’s closing costs, which enables the borrower to purchase the home with less “cash out of pocket” at closing. Seller paid closing costs should be negotiated and written into the purchase contract for the home.
There are certain fees that are common in real estate transactions which are considered non-allowable by VA. The Veteran borrower is not allowed to pay these fees and they are most commonly paid by the seller when purchasing a house using VA or Texas Vet financing.
To get started with a Texas Vet or VA Loan today, call us or fill out the short form to the right and we’ll help you get pre-qualified for a Texas Vet or VA Mortgage
Texas Vet & VA Loan Specialist Shirley Mueller
Since 2003 Shirley has originated well over 1500 Texas Veteran and VA Loans. She has helped Veterans in almost every possible circumstance including active duty personnel deployed overseas, returning home, with PCS orders, as well as separated and retiring Veterans. – Read More
