VA Lending: What You May Not Know

Armed Services Veterans put their lives on the line to defend America's freedom. As a token of respect for their service, the U.S. Department of Veterans Affairs (VA) offers special features for veterans who want to own a home. If you're a qualified veteran, the dream of owning a home can be achieved with ease through PRM's VA Lending options. Here are some of the special features that come with VA Loans.

Seller Concessions

In some cases, VA home buyers may ask the seller to pay costs associated with the VA loan on the buyer's behalf. The VA permits seller concessions but requires that seller concessions do not exceed 4% of the loan amount.

Seller Concessions Include:

• Prepaying taxes and insurance on the home
• Interest rate buydowns
• The buyer's VA funding fee
• Paying off judgements or credit balances on the buyer's behalf
• Gifts (i.e. a microwave or dishwasher)

Non-Allowable VA Fees:

Non-allowable VA fees are expenses that VA buyers legally cannot pay. This makes the home buying process that much easier for qualified veterans. Non-Allowable Fees Include:

• Attorney fees
• Commissions or brokerage fees
• Escrow Fee/Settlement Fee/Closing Fee
• Closing Protection Letter
• Underwriting Fee/Processing Fee
• Lock-in Fee/Application Fee
• Appraisals requested by anyone but the buyer
• Fees for a flood zone determination by the lender or appraiser

This doesn't mean the home seller has to pay these fees. Any other party involved in the loan, like the lender or a real estate agent, can cover these expenses. VA buyers can negotiate with the home seller to cover some or all of their closing costs. But that's not always a realistic option, so make sure to work with us in the early stages and factor in projected closing costs. We can help you create an offer which maximizes your budget and your chances of landing your dream home.

The VA's Minimum Property Requirements:

The VA has a set of specific requirements for a home to qualify for a VA Loan. Minimum Property Requirements must be met in order to qualify for a VA loan. These home requirements help ensure that veterans and military families have a safe, structurally sound, and clean place to call home.

Minimum Property Requirements Account For:

• Mechanical systems (heating & cooling)
• A reliable, drinkable water supply
• Domestic hot water
• A safe method of sewage disposal
• Roofs
• Rid of infestations
• Ventilation

If you are United States Veteran and have questions about how a VA loan can work for you, don't hesitate to contact us. We sincerely thank you for your service!