Another benefit of a VA loan is that it allows seller concessions.
Seller concessions are closing costs that the seller has agreed to pay. Seller concessions include, but are not limited to, the following:
- payment of the buyer’s VA funding fee
- prepayment of the buyer’s property taxes and insurance
- gifts such as a television set or microwave oven
- payment of extra points to provide permanent interest rate buydowns
- provision of escrowed funds to provide temporary interest rate buydowns,
- payoff of credit balances or judgments on behalf of the buyer.
VA loans allow the seller to contribute up to 4% towards the costs associated with the VA loan on the home buyer’s behalf.
This is exceptionally important in helping a veteran purchase a new property and reducing the amount of money needed for closing.
Lenders throughout the Tampa Bay area can help veterans and military personnel with their VA loans.
To find out if you qualify for a VA Loan, you can start the application process at: VA Loan Tampa.