VA Loan Fee Facts
When a veteran or current military member wants to apply for a VA home loan, the applicant must budget for fees and charges associated with the VA insured home loan. Lenders are given a list of VA-approved fees and charges, plus a list of fees the borrower is not permitted to pay.
Borrowers should be prepared to pay for or finance (when permitted) such fees and charges, and know which fees must be paid up front, which can be financed, and what they aren’t expected to pay. There’s also a legal requirement for the borrower to be informed of all fees that are considered non-refundable should the buyer change his or her mind and cancel the loan.
VA Loan Fee Fact–The lender may pass along the costs of a VA appraiser and VA compliance inspectors to the buyer. The veteran is also responsible for paying for a second appraisal in cases where the borrower wants a reconsideration of the fair market value of the property.
VA Loan Fee Fact–the borrower must not pay for any appraisal requested by the lender or seller for reconsideration of value, and the borrower must not be charged for appraisals requested by third parties.
VA Loan Fee Fact–the borrower can be charged for recording fees, credit reports and evaluation fees in the case of automated underwriting. The veteran must not be charged for legal fees associated with the lender’s own business dealings associated with the loan with the exception of title preparation fees.
VA Loan Fee Fact–the borrower is allowed to pay taxes, assessments, and similar items for the current year chargeable to the borrower and the initial deposit for the tax and insurance account. The VA loan applicant is also allowed to pay for hazard insurance and flood insurance where required. In the case of flood zone determination, the borrower must only be charged the actual amount for the determination service, and only if that determination is made by a third party guaranteeing accuracy. Borrower must not be charged for a flood zone determination made by a lender. The borrower also cannot be charged if such a determination is made by a VA appraiser.
VA Loan Fee Fact–a borrower seeking a VA condo loan can pay for surveys required by the lender or the applicant, but for condo loans such charges must have prior VA approval.
About Bruce Reichstein
Bruce Reichstein is an Expert on (VA) Military/Veteran Home Loan Guidelines for over 26 years — www.VALoans.com. He is an experienced VA Loan Mortgage Banker who is passionate about assisting US Military Veterans utilize their Veteran Eligibility to purchase a home.