MYTH: YOU CAN’T FINANCE CLOSING COSTS INTO YOUR VA HOME LOAN
Hey there, Kaitlin Miller with Veteran’s Lending Group! Today I wanted to share some helpful information that about VA home loans. Today I’m busting the myth that you cannot finance closing costs into your purchase. While technically not considered “financed”, there is a way for fees to essentially be rolled into the purchase. The way to structure this would be to offer a slightly increased purchase price to the seller. After that, the seller gives that difference back to the buyer as a seller credit. For example:
A $200,000 purchase price becomes a $205,000 purchase. The seller credits back $5,000 towards the buyer’s closing costs. This essentially allows closing costs to be wrapped into the buyer’s total loan amount.
The coolest part about this is that VA loans do not specifically state a maximum amount that a seller can pay towards buyers closing costs. It also allows for a seller to provide additional concessions to you to help pay off debt or buy down your interest rate. If you have questions about this aspect of your VA loan benefit, or any other questions, give us a call!