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Yes, but only if it's negotiated that way. I was talking about according to the FAR addendum. The funding fee is something different and would normally be paid for by the buyer.
Thanks much for your assistance in this matter. I truly appreciate it.
I believe that no seller wants to accept my offers is because of these statements:
Buyer Seller shall pay 1% discount points
Seller to CR 4% for Buyers VA Non-Allowable (Lndr, Escrow/Closing Fees) with remaining balance to Buyers Re-occurring & Non Re-occurring CLS/Settlement Cost
Is there any way I can make my purchase bids more acceptable? I still want to use my VA
renriq02 or Anyone, Please Help Scared Selling to VA Buyer
I signed up after reading this thread and your advice which was very helpful. But your last post scared the x&@y out of me. I just got a contract on my house which I am selling myself. While I'm glad to have a contract, unfortunately the buyer is getting a VA Loan. As a seller how can I best safeguard against having to pay unexpected VA fees at closing. I have the same notation in the VA addendum as palmcoasting mentioned - a limit of $500 to be paid by seller. Is this sufficient protection for me so that I will not be stuck with any more than that at closing? What happens at closing if there are fees in excess of that which the Buyer is not allowed to pay because it is a VA loan? Can he really pay them anyhow? If he won't/can't pay the excess over $500, can that then be the end of the contract if he wants to walk away. Granted both of us have a vested interest in closing, and so does his realtor, but my interest is probably greater than his at that point so...! How can I best protect myself?
The VA addendum also shows "Loan Details": VA Funding Fee - $ zero, then it shows the Base and Total Loan amounts as being the same amount. Does this mean that there can be a VA loan without a Funding Fee - my buyer is indicating that he is exempt from that fee. Possible? What are his chances of getting the loan without a Funding Fee. Could this be a waste of my time waiting to see if he qualifies without that Fee since it will never happen under these circumstances?
I will really appreciate any help/advice anyone can give me.
If the buyer can't pay it, the lender usually eats the cost, and pays it.
When i started with VA tht's what i did
exemption from the funding fee is common
if the person has a disability they will be exempt. disabilities doesnt have to be drastic
Quote:
Originally Posted by RichardVS
I signed up after reading this thread and your advice which was very helpful. But your last post scared the x&@y out of me. I just got a contract on my house which I am selling myself. While I'm glad to have a contract, unfortunately the buyer is getting a VA Loan. As a seller how can I best safeguard against having to pay unexpected VA fees at closing. I have the same notation in the VA addendum as palmcoasting mentioned - a limit of $500 to be paid by seller. Is this sufficient protection for me so that I will not be stuck with any more than that at closing? What happens at closing if there are fees in excess of that which the Buyer is not allowed to pay because it is a VA loan? Can he really pay them anyhow? If he won't/can't pay the excess over $500, can that then be the end of the contract if he wants to walk away. Granted both of us have a vested interest in closing, and so does his realtor, but my interest is probably greater than his at that point so...! How can I best protect myself?
The VA addendum also shows "Loan Details": VA Funding Fee - $ zero, then it shows the Base and Total Loan amounts as being the same amount. Does this mean that there can be a VA loan without a Funding Fee - my buyer is indicating that he is exempt from that fee. Possible? What are his chances of getting the loan without a Funding Fee. Could this be a waste of my time waiting to see if he qualifies without that Fee since it will never happen under these circumstances?
I will really appreciate any help/advice anyone can give me.
Thanks for responding so quickly. I just got a call back from his proposed lender (affilliated with his realtor), where I had left a message earlier. He has actually advised me that they are taking out even the $500 and assured me that there won't be any other fees for me to pay. And thanks for explaining the Funding Fee exemption also.
There is one other thing that bothers me with the VA loan - the requirement to make Repairs. The property I am selling is a 9 year old condo with a sale price of approx. $300K. It is in in excellent condition, is in need of no known repairs, and is on the 4th floor of a 5 story building. Is there anything you can think of that is likely to be a repair requirement. Sorry to bother you again and thanks.
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