FHA and VA Financing / the Way Your Offer Should Be Structured | viprealtyplatinum's Blog

If you purchasing a home and you are obtaining a VA or FHA loan to do so, that information must be included in your written offer. This is necessary on these government insured mortgages because these mortgages place additional financial cost and performance obligations on the seller.

FHA and VA insured mortgages prohibit buyers from paying certain types of fees that are often charged by escrow companies, lenders, settlement agents, etc,.  These fees are called non-allowable fees. The fees still get charged but as the buyer, you are not allowed to pay for them. What results is that the seller ends up paying the fees instead of you. Most of these non-allowable fees are charged by your lender.  Before you make an offer you should have already been pre-qualified for financing by a loan officer. If you are buying a DFW For Sale By Owner Property or your DFW Realtor can ask how much the lender’s non-allowable fees will be. Experienced Realtors should also have an idea of what non-allowable fees will be charged by their preferred escrow company and title insurance company.  Since these are fees the seller would not usually pay on a sale with a conventional mortgage this information must be included in your written offer. Realize that since the seller will be paying these additional fees, they may be less negotiable on their price of their DFW Home for sale. You can have your Realtor search the powerful DFW MLS for property listings that advertize that the seller is willing to pay a certain amount of closing cost on the buyer’s behalf.