On loans guaranteed by the Veterans Administration, the seller is required to pay 100% of escrow, not the traditional 50% split between the buyer and seller.
The VA also states that approximately $1,200 of lender fees CANNOT be paid by the veteran. Typically, these fees will be stated as seller expenses on the HUD-1 statement, though a lender may choose to pay or waive some of these closing fees. Common names for these lender fees include: document preparation, underwriting, processing, administration, etc…
Sources:
Kelly Parkman of the KParkman Mortgage Group
If you have any questions regarding purchasing a home with a VA Home Loan, selling your home to a buyer using a VA loan, or any other real estate questions, please give me a call at 503-267-8370 or email me at dannyshepard@oregonfirst.com.
Danny
