If you are a Realtor working with a seller who is determined not to accept offers from buyers receiving financing in the form of a VA loan because your sellers do not want to pay the buyer’s closing costs; there’s a work around.
I am proud of the way VanDyk Mortgage handles a lot of things, and this policy is one that helps to promote a whole sect of the home-buying public. We have found the concept of seller-paid fees to be a common objection. Sellers are already typically footing the bills for a variety of expenses associated with getting their homes in shape for sale and are unwilling to take on more of a financial burden.
While all lenders have the capability to provide the following solution, we have found that the loan originators in most circumstances either do not know how to make this happen, or even that this type of workaround exists!
The solution we suggest in this scenario is to charge buyers backed by a VA Loan a 1% origination fee. This fee in turn can then be applied to paying for the title fees and the termite inspection and the other buyer non-allowable costs. Since these are the fees about which sellers tend to balk, it serves as a resolution that makes this pool of buyers viable. It is also testimony to be how being creative and keeping an open mind can make deals happen.
I am not saying this works all the time, but it is most definitely worth a shot. If the first offer a seller has received in a while is from a buyer with a VA loan, but it is being rejected for this reason, as Realtors like to say, “It’s still better than the offer you got yesterday.”
At the end of the day, I like to think of it as wringing the most out of the guidelines we are dealt. I’ve always been a fan of making the most out of everything.