Laura Roskelly, Realtor ABR, ASR, CSR, GRI, E-PRO, ASP,
Agent, Fort Meade, MD
Hi Tyson,
In our area the only fee that has to be paid by the Seller for the buyer is the termite inspection and treatment if necessary. There is also a VA clause to be used in every contract that outlines that the house MUST appraise at or above the contract price and that the seller will complete any repairs required by the appraiser. It is usually written in that the repairs cannot exceed a certain amount.
Our current market allows for the Seller to pay ALL of your closing costs and in our area it is stillabuyers market where that amount can usually be negotiated in full so you get in your home for little to no money out of pocket. Best of luck on your home search!
In our area the only fee that has to be paid by the Seller for the buyer is the termite inspection and treatment if necessary. There is also a VA clause to be used in every contract that outlines that the house MUST appraise at or above the contract price and that the seller will complete any repairs required by the appraiser. It is usually written in that the repairs cannot exceed a certain amount.
Our current market allows for the Seller to pay ALL of your closing costs and in our area it is stillabuyers market where that amount can usually be negotiated in full so you get in your home for little to no money out of pocket. Best of luck on your home search!
Web Reference: http://www.FortMeadeHomes.com
Andrea Bedard, Realtor®,
Agent, Silver Spring, MD
Hi Tyson, the VA has a list of "non-allowable" items, charges that are not to be paid by the buyer. However, that does not necessarily mean that the seller has to cover these. Many times, the non-allowable charges are covered by all or a portion of the seller subsidy that was negotiated - the same seller subsidy that you likely negotiate with a conventional or FHA buyer. Some may be covered by the 1% flat fee the lender is allowed to charge and others may be waived.
If you are in an area where a certain percentage of closing help is customary (which PG county generally is but one must look at the specific subdivision), you may not necessarily see a difference in the amount of subsidy you pay a buyer with a conventional loan vs. a VA buyer.
The termite inspection fee always comes up because it is not a charge that the lender will cover or waive and since it is not allowed to be paid by the buyer, it is a cost the seller has to carry. In comparison the termite inspection is a small fee.
Hope this helps! Best wishes.
If you are in an area where a certain percentage of closing help is customary (which PG county generally is but one must look at the specific subdivision), you may not necessarily see a difference in the amount of subsidy you pay a buyer with a conventional loan vs. a VA buyer.
The termite inspection fee always comes up because it is not a charge that the lender will cover or waive and since it is not allowed to be paid by the buyer, it is a cost the seller has to carry. In comparison the termite inspection is a small fee.
Hope this helps! Best wishes.
Brent Mendelson,
Mortgage Broker or Lender, Bethesda, MD
Tyson,
The only other thing to watch out for is VA doesn't allow the buyer to pay certain items. One example is a tax service fee. It's usually $85 or so. Most lenders just eat the fee as a cost of doing a VA loan. Some will try and shift costs like that to the seller side. Minor stuff for the most part and again it usually isn't a problem. One other thing, VA appraisals are more strict on certain items. I actually had one condtion for the length of the borrowers grass!! If your home was built before 1978 it could be an issue with any lead paint. Please note these strange scenarios are the exception not the rule. Most VA loans go smoothly if the lender is on the ball.
Hope this helps, let us know if you need more.
Thanks,
Brent Mendelson
Senior Loan Officer
Monarch Mortgage
600 Jefferson Plaza, Suite 400
Rockville, MD 20852
240-403-1970 Direct
301-412-0259 Cell http://www.monarchmtg.com/bmendelson
nmlsr#111407
The only other thing to watch out for is VA doesn't allow the buyer to pay certain items. One example is a tax service fee. It's usually $85 or so. Most lenders just eat the fee as a cost of doing a VA loan. Some will try and shift costs like that to the seller side. Minor stuff for the most part and again it usually isn't a problem. One other thing, VA appraisals are more strict on certain items. I actually had one condtion for the length of the borrowers grass!! If your home was built before 1978 it could be an issue with any lead paint. Please note these strange scenarios are the exception not the rule. Most VA loans go smoothly if the lender is on the ball.
Hope this helps, let us know if you need more.
Thanks,
Brent Mendelson
Senior Loan Officer
Monarch Mortgage
600 Jefferson Plaza, Suite 400
Rockville, MD 20852
240-403-1970 Direct
301-412-0259 Cell http://www.monarchmtg.com/bmendelson
nmlsr#111407
Web Reference: http://www.monarchmtg.com/bmendelson
Akil Walker,
Agent, Bowie, MD
Hello Tyson,
Like Ariana stated below the terminte inspection is a VA requirement that the seller will pay at closing or before. Everything else is based on the agreed upon terms of the contract.
Like Ariana stated below the terminte inspection is a VA requirement that the seller will pay at closing or before. Everything else is based on the agreed upon terms of the contract.
Web Reference: http://www.akilsellshomes.com
Ariana Loucas,
Agent, Maryland
Dear Tyson,
Termite Inspection cost is a required fee for the seller to pay in VA loans. If they are first time home buyers, then you may have additional cost, and anything else agreed upon in the offer contract. For example you may have agreed to split transfer and recordation taxes 50/50. You can also call the Title Company handling the closing to provide you with a better estimate. I hope this helps.
Warmest regards,
Ariana Loucas
Termite Inspection cost is a required fee for the seller to pay in VA loans. If they are first time home buyers, then you may have additional cost, and anything else agreed upon in the offer contract. For example you may have agreed to split transfer and recordation taxes 50/50. You can also call the Title Company handling the closing to provide you with a better estimate. I hope this helps.
Warmest regards,
Ariana Loucas
Web Reference: http://www.realestateinmdanddc.com
