VA loans offer a truly unique, money and deal-saving option that few understand. While you may know that VA has a seller concession limit of 4% of the sales price, you might not know WHAT is included in that 4%. Would you like to know what is included?  I thought you may be interested:

Sellers can pay up to 4% in sales concessions to include:

• Buyer's funding fee
• Prepaid taxes and insurance
• Gifts such as television or microwave
• Interest rate buy down points
• Temporary buy down funds
• Payoff of credit balances or judgments on behalf of the buyer (amazing but true).

Payment of closing costs and normal discount points (that aren't for the purpose of buying down the interest rate) are NOT included in the 4% limitation.

So don't look at a sales price of $200,000 and calculate that a seller can only pay $8,000 (4% of $200,000) on behalf of the borrower. A seller could pay $8,000 towards the buyer’s prepaid taxes and insurance and debt PLUS $3000 towards the buyer's closing costs, totaling $11,000 paid by the seller.

This would still comply with the 4% limitation because closing costs are not included in the 4% limitation.

Call me, Kelly Whytock for complete information on assisting your VA borrowers!