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LOANS FOR MILITARY VETERANS - The Skinny on VA Loans - What you as a seller may have to pay

Posted by Diane Brennan on Tuesday, June 18th, 2013 at 11:18am.

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.


-Appraisal Fee

-Credit Report

-Flood Certification Fee

-Hazard Insurance

-HOA Dues Prorated

-Loan Discount

  -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

-recording Fees/Taxes

-Release Fees - Refinance Transaction Only

-Subordinate/Demnad/Reconveyance Fees - Refinance Transaction Only

-Survey (Condo loans must have prior VA approal)

-Property Taxes

-Title Endorsement

-Title Examination search

-Title Insurance

-VA Compliance Inspectiion

-VA Funding Fee


-Excrow Fee

-Closing Fee/Settlement Fee

-Notary Fee

-Processing Fee

-Tax Service

-Underwriting Fee

-Wire Fee


-Appraisal Re-Inspect Fee requested by the Underwriter/Lender

-Flood Zone Determination made by Lender or Appraiser.

That Real Estate Show airs Saturdays at 3pm on 92.3 FM KTAR.  If you have questions about VA loans, contact us.

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