Va Mortgage Funding Fee
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Benjamin Said:
I need help with negotiating on a house PLEASE HELP.?We Answered:
As a real estate agent for Howard Hanna in Pittsburgh, PA I have quite a bit of experience on this subject.Just a quick note though, for a buyer is its entirely FREE to have an agent represent you. Therefore trying to go it alone doesn't make a lot of sense since you get all of the services of a professional agent and the seller pays commision on the home to your representative. If the home is For Sale By the Owner then ask if they will pay a buyer's agent, the services you both will recieve in return is well worth the price of half a normal commision on the seller.
As far as your situation there may be a way around this. Depending on your state they may allow what is called 'seller assist'. What this means is that you offer whatever your base price for the home plus 6% to be credited to you at closing to help cover your fees. With the seller assist it allows you to have the seller pay your fees at closing and add the cost into your mortgage significantly reducing what terms you have to negotiate on.
For example:
Your base price: $126,000
6% of the base price: $7,560
At closing you will be credited $7,560 from the seller. And your mortgage will be for $133,560 (the 6% plus the base amount)reducing the amount of money you need to bring to closing. This money is credited against any of your fees such as the title insurance/deed prep etc.
As far as what you think is fair thats up to you. I look at it like this. The seller is only required to pay for costs such as their share of the transfer taxes, any municipal letters, and testing required by the area. Your mortgage costs and the title insurance/deed and prep work are your responsibility. I'd start by asking them to pay their half. I'd need more information but it seems they are forfilling their side. If you can get them to help pay your mortgage costs then you are really ahead. But don't count on it.
I hope this helps.
Kristen Said:
VAFF or VA Funding Fee?We Answered:
Yes, the 2% funding fee is a requirement by the Veteran Adminisration for active duty or veterans who purchase a home after January 1, 2004 and put zero down. For example if you put 5% down then the fee would be 1.5%.The fee is paid to the Veteran Administration not to the mortgage company you are using. This fee was implemented by the VA to absorb some of the costs associated with veterans who default on their VA guaranteed loans.
Most of the times this funding fee is financed into the loan and not paid as an out of pocket expense at closing.
Marie Said:
Can I refinance my current house and get a VA loan?We Answered:
We are closing on our house next week and used my husband's VA loan, the funding fee for first time users with no down payment requires a 2.15% fee, up to 10% down payment requires a 1.5% fee, and 10% or more requires a 1.25% feeFor subsequent users, no down payment requires a 3.3% fee, up to 10% down payment requires a 2.50% fee, and 10% or more requires a 2.25% fee.
Sue Said:
VA funding fee...can I claim it on my taxes? Doesn't show up on 1098...?We Answered:
From What I read at the irs.gov website the answer is yes as it should be listed in your 1098 form mine is and it had the full va funding fee amount that i paid 3500 we bought a home in 09Penny Said:
Would you borrow money for house down payment?We Answered:
Pay the $7000. Borrowing from anyone who is "intrusive" is a bad idea, whether or not the person is a relative.Clara Said:
Good Day, Should I pay points on a refinance of an investment property/condo?We Answered:
the closing costs seem a bit high. You mentioned a "new" loan at 5.71 APR, but that's different than the monthly mortgage rate, so it's difficult to figure your monthly savings. I'm guessing your new mortgage to be 5.5%, so you need to calculate your new payment amount (145,900) at 5.5%= approx 670/mo INTEREST, and you are currently paying on 141,000 @ 6.875% (approx 807/mo, interest). Taking the difference, you'll be "saving" about 137/mo in interest (807 old mortgage minus 670 new mortgage interest=137/mo less in interest). Now you gotta divide what it costs you to get this new refi, ($4422.75) by that 137/mo savings and you get about 33 months to recapture your $4422 "cost". So, if you are planning on staying in your place for another three years, then it is an "okay" deal, but if you are planning on moving in the next year or two, then no, it's not a very good deal.