VA Loan Closing Costs

Описание: Video Transcript:

Welcome back to [Your Channel Name], your trusted source for all things home buying! Today, we're diving into an important topic for our veterans and active-duty service members: VA loan closing costs. Whether you're purchasing your first home or looking to refinance, understanding these costs is crucial. Let’s break it all down for you.

First off, who exactly is responsible for paying closing costs on a VA loan? In most cases, the buyer, that’s you, will pay some of the closing costs. However, the VA program has rules that protect buyers from excessive fees. For example, the VA limits what fees and costs can be charged to the borrower.

The seller can also contribute! It’s common for sellers to agree to cover some or even all closing costs as part of the purchase agreement. This is called 'seller concessions,' and we’ll dive deeper into that shortly.
Now, let’s address a common question: Can closing costs be rolled into your VA loan? Unfortunately, the answer isn’t a simple yes or no.

You can’t include most closing costs in the loan amount for a home purchase, but there is one major exception—the VA funding fee. This fee can be financed into your loan, meaning you don’t have to pay it out of pocket. For refinances, some closing costs can be included, depending on the loan type.

So, how much can you expect to pay in closing costs? Typically, VA loan closing costs range from 2% to 5% of the home’s purchase price. Let’s say you’re buying a $250,000 home—you’re looking at $5,000 to $12,500 in closing costs.

These costs can include everything from the loan origination fee to the appraisal, credit report, and title services. Remember, shopping around for lenders can help you find competitive rates and lower fees.
What about seller-paid closing costs? Good news: VA loans allow sellers to cover up to 4% of the home’s purchase price in closing costs.

This can include prepaid property taxes, insurance, and even paying down points on your mortgage to lower your interest rate. Negotiating these seller concessions upfront can significantly reduce your out-of-pocket expenses at closing.

Finally, let’s talk about rolling closing costs into a VA loan. While you can’t roll most closing costs into the loan for a purchase, refinancing through the VA’s Interest Rate Reduction Refinance Loan (IRRRL) or cash-out refinance might allow you to finance some of these expenses. Be sure to speak with your lender to understand your options.

VA loans are an amazing benefit for those who have served our country, and understanding the costs involved helps you make informed decisions. Whether you’re negotiating with a seller or exploring refinancing options, you now have the knowledge to take the next steps confidently.

If you found this video helpful, be sure to like, subscribe, and hit the notification bell for more tips on navigating your home-buying journey. Thanks for watching, and thank you for your service!

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