If you're selling your Phoenix area home, you may want to know about VA Loans. They contain fees that a veteran doesn't have to pay and a seller does.
So what is a VA loan? It's financing a Veteran can obtain through the United States Department of Veteran Affairs. It was created so veterans and their families can obtain financing to purchase a home. The department doesn't orginate the loan, it just establishes rules for those that qualify, dictate the terms of the mortgages offered and insures VA loans against default.
If you're a Veteran and taking part in the Maricopa County Home in 5 Advantage Program, there's good news for vets and sellers. The grant gives 6% to qualifying veterans which means the grant will cover the fees that sellers would normally pay in a VA loan.
Here are the list of Allowable and Unallowable VA fees.
-Flood Certification Fee
-HOA Dues Prorated
-purchase - reasonable and customary
-refinance - not to exceed 2% financed
-Loan Orgination Fee (not to exceed 1% of the loan amount)
-MERS Registration Fee (reasonable and customary)
-Overnight delivery Fee - Refinance Transaction Only
-Pest inspection - Refinance Transaction Only
-Release Fees - Refinance Transaction Only
-Subordinate/Demnad/Reconveyance Fees - Refinance Transaction Only
-Survey (Condo loans must have prior VA approal)
-Title Examination search
-VA Compliance Inspectiion
-VA Funding Fee
-Closing Fee/Settlement Fee
-Appraisal Re-Inspect Fee requested by the Underwriter/Lender
-Flood Zone Determination made by Lender or Appraiser.