A new Good Faith Estimate went into effect on January 1, 2010 and because of all the requirements that go with any new Government Regulated Form… FHA came out in January with a list of fees they felt like were reasonable for Homeowners to Pay and Lenders to Collect.
Which prompted the VA to come out with a clarification on what Closing Costs they feel are reasonable for a Veteran to pay in connection with a Mortgage Loan! Here’s the latest from the Veteran’s Administration regarding Closing Cost Fees:
One Percent Origination Fee. The lender may charge the veteran a flat fee up to one percent
of the loan amount. The flat fee is intended to cover the lender’s costs and services, which are
not reimbursable as “itemized fees.” For Interest Rate Reduction Refinancing Loans (IRRRLs),
please note that this fee may not exceed one percent of the existing VA loan balance of the loan
being refinanced plus the cost of any energy efficient items less any cash payments from the
veteran – see line 4 on
b. Reasonable and Customary Itemized Fees. Veterans may pay reasonable and customary
amounts for the following services. Whenever these itemized fees relate to services performed
by a third party, the veteran may only pay the
(1) Appraisal and compliance inspections
(2) Recording fees
(3) Credit report
(4) Prepaid items (taxes, assessments, and similar items)
(5) Hazard insurance
(6) Flood determination
(7) Survey
(8) Title examination
(9) Title insurance
(10) Special mailing fees for refinancing loans
(11) Mortgage Electronic Registration System (MERS) fee
(12) Other fees authorized by VA
We love doing loans for Veterans, and encourage you to talk to us about the VA Mortgage Loan Programs available to you! Did you know that it might be to your advantage to make a Down Payment on a VA loan? Call us about VA Mortgage Loans! Steve Thorne, 919-649-5058
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