You’ve dedicated your time and energy to serving your country. Now, your hard work has paid off and you’re eligible for a Veteran home loan.
One of the major benefits of buying a home with a VA loan is that you don’t have to put any money down. But this doesn’t mean you’re off the hook entirely when it comes to expenses. You’ll still need to pay closing costs.
The good news is, if you’re tight on funds, there may be other ways you can come up with the necessary cash. Below, we’ve shared some suggestions on how to cover closing costs for your VA loan.
How Much Are Closing Costs for VA Loans?
VA loan closing costs include both fees charged by the VA as well as your lender. Additionally, you’ll also have to pay property taxes and insurance costs. Your exact closing costs will depend on the details of your loan. In general, VA borrowers should expect to pay about 3-5% of the loan amount.
5 Ways to Pay for VA Closing Costs
If you don’t have enough funds to pay closing costs in cash, you may be able to cover your expenses in other ways. Here are some suggestions for ways to pay closing costs for VA home loans:
- Roll some of the costs into your mortgage: You may be able to roll some of your closing costs such as your VA funding fee into your mortgage. Keep in mind, this will increase the amount of money you owe.
- Ask the seller to cover some of the expenses: You can ask the seller to cover some of your closing costs. The VA allows sellers to cover up to 4% of the total cost of the home.
- Pay using gift funds: You may want to consider asking a close relative for help. You can cover closing costs using gift funds. Keep in mind, in order to be considered a gift, these funds must be given freely with no obligation of repayment.
- Get a side job or take in a renter: Consider other ways you can make money to pay for closing costs. You may want to get a second job as a delivery driver, dog walker, or babysitter to make some extra money.
- Have a garage sale: If you have valuable items lying around that you no longer use, you could try selling them to make extra money. Try posting them for sale online or go the old-fashioned route of having a garage sale.
Apply for a VA Home Loan Today
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