Long Island Real Estate Question (6%, mortgage, mortgage, fees)

[mdukes]

My husband and I found a house in Suffolk county that we would like to place an offer on. My husband is a veteran and so we qualify for a VA lon with NO money down.

Our realtor is telling us that even though we qualify for VA with no money that we still have to put at minimum $5,000 down or come up with all the closing cost upfront. She is telling us that no one not a seller or an attorney will let us enter into contract because we are considered a risk.

We are first time home buyers and I just want to know if anyone can shed more light on this information we have received.

Thanks

[alexei27]

This does seem right. I recently applied for a VA loan for a refi. The upfront costs were staggering...something like 12K!! It is really the fees and points that you are paying. The VA loans are pretty pricey.

[palmcoasting]

Why can't you present an offer with seller concessions paying your closing costs? VA Loan Mortgage Closing Costs for Veterans
I have had two VA loans close in the last 6 months with absolutely nothing out of pocket for the buyer.
You do have to have an escrow deposit...perhaps that is what your Realtor® is talking about? You would get that back at closing. You can also utilize the first time homebuyer credit...if banks are really now allowing that...they were supposed to be but weren't, don't know if that system is fully in place yet. You might want to post this in the mortgage forum as there are people in there up on the lastest information.

[Silverfall]

There are some sellers that don't want to handle VA loans, but VA allows the seller to pay up to 6% towards closing costs and fees on the loan.

I have seen sellers not willing to pay any closing costs or deal with VA loans because they can be more difficult, and I have had sellers GLAD to pay those fees because they appreciate our military.

In my area, I would have little trouble getting a home for someone with a VA loan. Maybe LI is different?

[middle-aged mom]

[quote=palmcoasting;9404912]

I have had two VA loans close in the last 6 months with absolutely nothing out of pocket for the buyer. /quote]

Escrow monies?
Home Inspection?
Pest Inspection?
Radon Inspection?
Insurance Binder?
Property tax escrow?
Attorney Fee?