Kentucky VA Mortgage Sales Concessions – How Well Do You Understand This Guideline?

Kentucky VA Sales Concessions – How Well Do You Understand This Guideline?

Knowing these tips can help you save a loan!

VA limits Sales Concessions to 4%, but there is more to it than that!

What is a Sales Concession that is applied to the 4% limit?

• Buyer’s funding fee

• Prepaid taxes and insurance

• Gifts such as a television or microwave

• Permanent interest rate buy-down points

• Temporary buy-down funds

• Payoff of Credit Balances or Judgments [Yes, you read that correctly]!

HOWEVER……….

Not included in this limit are the following:

•Amounts paid on behalf of the Veteran by the lender or real estate agent.

•Or amounts paid by the seller towards the closing costs.

These amounts can be paid in addition to the Seller Concessions.

Example:

$200,000 loan amount x 4% = $8000 maximum seller concession.

The seller pays $4000 in closing costs [NOT included…