In my last post I covered how to qualify for how to Qualify Texas Veterans Land Board Mortgage Loan (TVLB) or Veterans Housing Assistance Program (VHAP) mortgage. In this post I will cover what Fees to expect. As you remember from my first post one must still qualify for a VA, FHA or Conventional Mortgage. And if you utilize a VA Loan while you do not have to make a down payment you do have to cover closing costs. Here are the details but if you would like to start the qualification process you may fill out our online application here or just call our office at (832) 303-5693 and a Texas Vet Loan specialist would be happy to assist you.
An example of closing costs and fees that you may expect with a TVLB/VHAP that are contained in the origination fee are as follows:
- 1% of sales price Origination Fee
- 1% of sales price Participation Fee
- Realtor’s Commission (usually paid by seller)
- Hazard, Fire & Casualty Insurance
- Taxes for all relevant taxing authorities
- Flood Insurance (if applicable)
- Title Insurance Premium
- Attorney, Legal and/or Document Drafting/Review Fees
- Closing Fee
- Pest Inspection (required if VA Loan is used)
- Tax Certificate Fee
- Tax Service Fee
- Prepaid Interest
- Appraisal Fee (usually paid at time of appraisal)
- Flood Certification Fee
- Overnight Delivery Service
After January 1, 2010 these fees are all rolled into a few categories and are not generally divulged separately as they once were in the Good Faith Estimate.
In addition you must bring the down payment required by the program that you qualify for. For FHA that will be 3.5% of the sales price and conventional that will be 10% of the purchase price. One important item of note is that the Seller may cover the following amounts of closing costs but they may NOT cover your down payment:
- 4% of sales price for a VA loan
- 6% of sales price for FHA and Conventional loans
Special Discount of one-half of one percent on the available VLB loan interest rate for Disabled Vets and Surviving Spouses as follows:
Disabled Veterans Discount - Veterans with disabilities may qualify for an interest rate reduction on their VLB Home Loans. The veteran must have a compensable service-connected disability of 30 percent (30%) or greater as verified by an Award Letter from the Department of Veterans Affairs (VA). Of course, the veteran must also meet all other eligibility requirements for these loans to qualify for the discount.
Surviving Spouse Discount – To honor our Texas veterans, the VLB offers a interest rate reduction on Home Loans to the surviving spouse of any service member killed in the line of duty. An unmarried surviving spouse of a veteran who is missing in action, or who died in the line of duty, or died from a service-connected cause and had a compensable service-connected disability rating of 30% or greater (as verified by an Award Letter from the VA) at the time of death is also eligible for the discount.
This reduction can result in a savings of tens of thousands of dollars for qualifying applicants.
While it is possible that you may get into a house with no money down remember the seller covering your closing costs is something that is negotiable between you and the seller and depending on the transaction the seller may or may not be able to assist you.
This covers what fees to expect when using Texas Veterans Land Board Mortgage Loan (TVLB) or Veterans Housing Assistance Program (VHAP) mortgage. In my Next and Final Post I will cover the proper steps to go through and the reasons for resistance on using the program.
-Henry J Daniels, Your Texas Vet Loan Expert for Premier Nationwide Lending
For a complete list of programs terms, rates or to start the qualification process you may fill out our online application here or just call our office at (832) 303-5693 and a Texas Vet Loan specialist will be happy to assist you.