Shortly before closing, real estate agents guide their buyers through the HUD-1 statement. This itemized list of fees helps buyers and agents nail down every last penny of the transactional costs.
A special set of rules applies to VA loan purchases (hint: no pencil sharpening fees allowed). Whether you’re an agent or a potential buyer, make sure you have a solid grasp of allowable and unallowable VA loan fees:
The VA limits the origination fee that a lender can charge a borrower to 1 percent of the loan amount. The origination fee covers a lender’s costs of processing a loan, and can include:
The 1 percent origination fee is designed to cover the time and money a lender invests into each loan file. But those aren’t the only costs that a VA loan will incur. Beyond the lender’s origination fee of 1 percent, VA borrowers can be charged for the following items:
The VA prevents lenders from charging certain fees to a VA borrower. VA loan recipients can never be charged for the following items: