Sellers Can Help VA Buyers Pay Closing Costs and Here Is Exactly How Much They Can Contribute

The VA Closing Cost Myth That Is Costing Veterans Real Money

There is a persistent misconception that sellers cannot or will not help VA buyers cover closing costs. It is not true and believing it without question can cost veterans thousands of dollars they never needed to spend.

Travis Egan wants every VA buyer to understand what the actual guidelines say before their next offer is written.

What VA Guidelines Actually Allow

VA guidelines permit sellers to pay up to four percent of the loan amount in concessions in addition to covering standard closing costs and discount points. That four percent is separate from and on top of the closing costs and points the seller can already contribute.

On a four hundred thousand dollar loan four percent equals sixteen thousand dollars in potential seller concessions before standard closing cost contributions are even considered. That is a meaningful amount of money that can dramatically reduce or eliminate the cash a veteran needs to bring to the closing table beyond the down payment.

What Seller Concessions Can Cover

The VA's concession allowance covers a range of costs that directly reduce the buyer's out-of-pocket expenses. The VA funding fee, which represents one of the larger closing costs on a VA loan for veterans who are not exempt, can be covered through seller concessions. Prepaid items like homeowners insurance and prepaid interest can also be addressed. The flexibility of how these concessions are structured is meaningful and worth understanding before an offer is written rather than after.

Why This Conversation Needs to Happen Before the Offer

Travis helps buyers' agents negotiate seller concessions into offers regularly. It is a standard part of structuring a VA offer in the current market where sellers have more motivation to work with buyers than they did during the peak of the seller's market.

If the agent representing a VA buyer has not raised the question of seller concessions before writing an offer that is a conversation worth initiating. The time to negotiate this is in the offer itself not after acceptance when the structure of the deal is already established and the leverage shifts.

If you have been told seller concessions are not available on VA loans or if your agent has not raised the topic before writing offers reach out to Travis Egan directly. He will walk through exactly what is available in your specific situation and how to make sure it gets into the offer where it can actually help. DM Travis anytime. He is here to help. Semper Fi.

Sources

VA.gov
ConsumerFinancialProtectionBureau.gov
MilitaryOneSource.mil
MortgageNewsDaily.com
Investopedia.com