Home Buying Advice - The Impact of FHA and VA Loans
How a VA or FHA loan can impact your offer.
The Impact of FHA and VA Loans
When you obtain a VA or FHA mortgage its not just another type of mortgage loan, it has financial implications for the seller. Because of this, you should specify the fact that you have this type of loan on your offer.
With these types of loan the government imposes restrictions on what the buyer will pay for, these include restrictions on some fees charged by the lending company, title company and other parties involved. This does not mean that these fees are not charged, it just means that the seller may have to pay them.
As soon as you are prequalified your lender will be able to give you details of what fees need to be addressed by the seller and your Realtor should have details of any other fees imposed by third parties like the title company. These should be included in the offer so the seller is aware of the situation and can make a decision on your offer based on these additional costs.Return to Home Buying Advice