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Q: Shall we say that I can take out a loan, what is the probability that I could get the seller to pay the closing costs and get that cost included on to my loan? I wanted buy a house but the huge closing costs kept me from buying one. With a VA loan, down payment is not needed. It’s commonly called the VA ‘no no’. Can you give me some advice on what to do with my particular problem? ~ Carl R.
A: There are several options you can do to solve your problem and you’re on the right path. You can try over bidding for the offer price. This will offset the amount you asked for. Roll the cost of closing into your seller’s offer price so that they cannot decline your offer because you requested closing help. This is what I advice my clients when the value is in the home.
With regard to the type of loan you are to take, it all comes down to the type home you are going to buy. Some properties do not pass the VA home inspection so that it requires conventional financing. Take this for example. Suppose you are going to buy a distressed property probably in foreclosure. Suppose that there are some structural concerns that the seller is aware of. An offer having a VA loan approval will probably not be accepted by the seller.
Usually, the type of financing you have would determine whether your offer would be considered or not. Your REALTOR® would be a big help to you during this time. He/she could help you sort through those listings. He/she could also show you homes that would fit to the type of loan you are going to take. However, if you are planning to buy a newly built home or a well-maintained one, either type of loan, VA loan or conventional loan, is okay.
Michael Gentile is a North Hollywood Realtor.
A: Carl, if you have VA eligibility then you are at an advantage. Almost all of the contracts that I see the sellers are the ones who are paying for almost 6 percent of closing costs with an average of 3 percent, depending on the cost.
You are absolutely right on the zero down for this type of loan. Getting the seller to pay for your closing cost is not a problem as long as the property is appraised for the sales with the closing cost included in it. As long as you have the right representation, this is particularly not a problem in our current market.
The bottom line: It depends on many factors. Call your North Hollywood Realtor today for more info.
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