The most common financing question related to the AZ Residential Real Estate Contract is “what fees does a seller have to pay on a VA loan/offer?” The short answer now in Arizona is almost always going to be $0 (see below for more). There are 2 fees leading the pack causing uncertainty.
- ESCROW FEE
- TERMITE REPORT 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.
New/Current Contract (in effect as of 02/01/2017)
Termite Report Fee
Not too long ago, veterans were not allowed to pay for their termite inspection in Arizona. That has also changed (this change was not connected to the new AZ RE Contract). Veterans can now pay for their own termite inspection in Arizona. NOTE: Termite Inspection is required on VA loans in AZ (and many other states)
What CAN’T a Veteran Pay on a VA Loan in AZ?
In many cases a veteran can pay for all their own closing costs on a VA home loan in Arizona. Unless a veteran has a low loan amount, 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. 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