VA – Veteran Closing Costs Paid By Seller

AZ Purchase Contract & VA Seller Paid Closing Costs

VA Veteran Closing Costs

The most common financing question resulting from new AZ Residential Real Estate Contract is “how much and what fees does a seller have to pay on a VA loan/offer?”.  The short answer now is almost always going to be $0 (see below for more).  There are 2 fees that are leading the pack when it comes to uncertainty in the market’s mind:  1. ESCROW FEE   2.TERMITE REPORT FEE

ESCROW FEE

In the old AZ Real Estate contract lines 83-85 required seller to pay the escrow fee on a VA home loan (see below).  That verbiage has been removed and is absent in the new contract which went into effect 02/01/2017 (see below).  VA does NOT have a separate rule stating a seller must pay the escrow fee.  That was an AZ contract requirement. 

Old Contract

Old AZ Purchase Contract

 

 

 

New/Current Contract (in effect as of 02/01/2017)

New AZ Purchase Contract

 

 

 

TERMITE REPORT FEE

Veterans were previously not allowed to pay for their termite report in AZ.  That also changed recently (however this change was not connected to the new AZ RE Contract).  The veteran can now pay for their own termite report in the state of AZ.  NOTE:  Termite Report is required on VA loans in AZ (and many other states)

So…What CAN’T a Veteran Pay on a VA Loan in AZ?

Short answer is that in most cased the veteran can pay all their own closing costs on a VA home loan now.  Unless a veteran has a low loan amount (rule of thumb is $150k or lower  – depends on their lenders and other loan fees), their lender is charging an origination point as a fee and/or one of the rare fees below shows up the veteran can pay all their own costs.  Other rare fees that we don’t normally see in AZ that a veteran cannot ever pay are:

Rare fees Veteran can Never Pay on a VA loan:

  • Attorney fees
  • Auctioneer fees
  • Borkerage fees
  • HUD/FHA inspection fees for builders
  • National disaster inspection fees
  • Prepayment penalties
  • Subordination prep fees

By Jeremy House

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Jeremy is the Founder of The HOUSE Team and a Sr. Loan Officer/Branch Manager with PrimeLending. Over the past several years he has ranked in the top 1% of all loan officers nationwide and one of the top 200 loan officers in America. In the mortgage industry, the devil is in the details. Jeremy prides himself on being a student and an expert when it comes to everything mortgage related.

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