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Old 07-25-2008, 08:50 PM
 
Location: North Carolina
152 posts, read 413,505 times
Reputation: 60

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Does anyone know if the VA will cover closing costs for a VENDEE loan. We figured we could offer them close to what they are asking. If not how much are the closing costs typically? I can't seem to find anyone at the VENDEE program to help me out.
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Old 07-27-2008, 11:45 PM
 
Location: NC
1,264 posts, read 2,121,034 times
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No, the VA will not cover closing costs for Vendee financing. And as far as closing costs go, these expenses are EXTREMELY reasonable, esp. considering you are getting 100% financing at a current rate of 5.5% (regardless of term - 10 yr, 15 yr, 20 yr or 30yr) with no mortgage insurance. If scraping the money together for the following is an issue, you may not be ready to purchase at this time.

Funding Fee - 2.25% of loan amount to VA
Closing Fee - $500.00 flat fee
Prorated Property Taxes
Prorated HOA Fees
Optional Title Policy
Recording Fees
State Taxes (if applicable)
1 year pre-paid Hazard Insurance
Title Company Closing Fee
Title Company Document Preparation Fee
Attorney Fee
Seller Representation Fee
Title Company Express Mail
Title Company Wire Fee
Title Company Deed Preparation Fee
Other Costs may be incurred based upon state and local requirements
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Old 07-28-2008, 12:25 AM
 
Location: Cary, NC
1,036 posts, read 3,630,193 times
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ChipL - Isn't the VA Funding Fee financed into the loan amount though?

Other than that, you need to have the funds to cover the costs. Depending on your state and price range closing costs/escrows typically range from 2-3.5% of the purchase price. Never worked in IL so you need to ask a local Realtor or lender what the fees range there.
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Old 07-29-2008, 07:20 AM
 
Location: NC
1,264 posts, read 2,121,034 times
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[quote=rcarrillo;4629092]ChipL - Isn't the VA Funding Fee financed into the loan amount though?

QUOTE]

As you know, for normal VA financing, the funding fee is generally rolled into the loan. But she asking about VA Vendee financing (special VA financing for VA foreclosed properties). The funding fee for that particular program is an expense that's paid upfront.
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Old 07-29-2008, 04:09 PM
 
Location: Cary, NC
1,036 posts, read 3,630,193 times
Reputation: 503
True, I forgot that VA Vendee doesn't let you roll it in.

If you are a veteran that would normally be exempt from the funding fee, you do not have to pay it though. Last time I checked they were still exempt from the fee even on VA Vendee loans. For everyone else, must be paid at closing.... 2.25% of loan amount adds a lot to the upfront cash required.
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Old 07-30-2009, 03:07 PM
 
84 posts, read 200,562 times
Reputation: 52
Default dead post revival...

you can increase the loan by 5% ONLY to apply towards closing costs and fees. I just talked to a loan officer about em.
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