VA Home Mortgage Loan Fees
Videos feature Tim Lewis, VA Loan Team Manager, NMLS #157603.
What fees will I be charged with a VA home loan and how much cash do I need?
Often, the fees associated with VA loans and the cash needed to close are a big question for VA borrowers. Knowing what to expect can make the process easier. To obtain a new VA loan, most VA eligible-borrowers can expect a VA required funding fee that could be paid or financed. Also, there is likely to be a credit report fee, VA-approved appraisal fee, compliance inspection, and VA lender origination fee. Other fees can include rate-reduction points, prepaid taxes, assessments and insurance, hazard insurance, flood zone determination, survey, and closing costs that could include title examination and insurance, recording fee, and mailing and/or wire fees. Many of the fees associated with VA loans can be included in the loan as long as the total amount doesn't exceed the conforming loan limit for your county. The seller might agree to pay the VA borrower's closing costs up to 4% of the purchase price; therefore, there may be no need to bring cash to closing.
For a VA refinance, the VA funding fee is required unless it's waived. But the fees associated with a refinance are often less than a new purchase. As examples, a VA streamline refinance has a lower VA funding fee, and may not require an appraisal.
For more information about fees associated with VA loans and cash needed for closing, contact a VA loan professional.
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