VA Loan Closing Costs
While a down payment is not required on VA loans you will still need funds to cover your closing cost which average 3% - 4% of the loan amount. However, with a va home loan the seller is allowed to pay all of your closing cost up to 6% of the loan amount. So, it is possible to avoid having to come out of your pocket to pay closing cost as well.
Tip: If you have little or no funds available for closing cost, let your realtor know that you are getting a va loan and need the seller to pay as many points as possible towards your closing cost so that he/she can negotiate the best purchase contract on your behalf. 1 point is equal to 1% of the loan amount. So if the home cost $200,000 and your closing cost are $8000, you will want the seller to pay 4 points (4% x $200,000 = $8,000). Using this same example, say you have $4000 of your own funds available for closing cost.. then you will only need the seller to pay 2 points.
Veteran Benefits
Stay up to Date on the Savings and Benefits Programs Available to You
There are many benefits and saving advantage programs available to you the veteran. Whether you are active duty or prior service, our Veteran's Benefits newsletter will keep you informed and up to date so that you can take advantage of all that is available to you. To subscribe to our free bi-weekly newsletter just enter your email address below and click join.
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Mortgage Resources
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