VA Loan Cheat Sheet
“What Fees Can or Can’t They Pay?”
Fees a VA Borrower Can Pay:
JULIE PICCIONE
Fees a VA Borrower Cannot Pay: Attorney's Fees: The borrower cannot be charged for attorney’s fees by the lender, although fees for title work and title insurance are allowed.
1. Brokerage Fees: Fees or commissions charged by a real estate agent or broker in connection with a VA loan cannot be paid by the veteranpurchaser.
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2. Prepayment Penalties: A borrower obtaining a VA refinancing loan cannot use loan proceeds to pay penalty costs for prepayment of an existing lien, nor can a borrower purchasing a property with a VA loan pay penalty costs required to discharge any existing liens on the seller's property.
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HUD/FHA Inspection Fees for Builders: Costs of any inspections or reinspections must be borne by the builder or sponsor and are not chargeable to the veteran-purchaser in proposed construction cases under HUD supervision.
Appraisal and Compliance Inspections: Fees for a VA appraiser and compliance inspectors, including for a second appraisal if the borrower requests a reconsideration of value However, the borrower cannot pay for appraisals requested by the lender or seller for reconsideration of value 1 Recording Fees: Costs related to recording fees, recording taxes, or other charges incident to recordation 2 Credit Report: The borrower can pay for the credit report obtained by the lender, including an evaluation fee of $50 for Automated Underwriting cases, or the charge for a merged credit report if required 3 Prepaid Items: This includes the portion of taxes, assessments, and similar items for the current year chargeable to the borrower and the initial deposit for the tax and insurance account 4 Hazard Insurance and Flood Zone Determination: The required hazard insurance premium, including flood insurance if needed The borrower can also pay for the actual amount charged for a determination of whether a property is in a special flood hazard area if made by a third party 5 Survey: The borrower can pay for a survey if required by the lender or veteran, with certain conditions for condominium loans 6 Title Examination and Insurance: Fees for title examination and title insurance, including the cost of an environmental protection lien endorsement to a title policy if required 7 Special Mailing Fees for Refinancing Loans: If the cost saved in per diem interest exceeds the cost of special handling 8 VA Funding Fee: Unless exempt, each borrower must pay a funding fee to VA 9 Mortgage Electronic Registration System (MERS) Fee: A one-time fee for electronically tracking the ownership and servicing rights of the loan 10 Other Fees Authorized by VA: Additional fees may be charged to the borrower if specifically authorized by VA and considered reasonable and customary in the
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