VA short sale guidelines

FHA allows up to 6% seller contribution and VA allows up to 4%John Jarvis Denver Mortgage company 720-732-2705

VA says the seller can pay "all reasonable" costs, not to exceed 4% of the purchase price. Conforming (Fannie Mae / Freddie Mac) says 3%, and FHA says 6%. Be aware that for some silly reason, on many foreclosures, the SELLING bank won't allow over 3%. www.BuyMN hudHomes.com

On VA loans the seller is allowed to pay up to 4% of the buyers closing costs as long as it's negotiated in the sales contract. FHA typically allows up to 6% seller concesions. Now depending on the current shortselling lender they may or may not allow for any closing costs to be paid, but again this is all part of the negotiation process. My advice is to show the contract to the client and let them decide. I hope you find this information helpful. Please let me know if I can be of any further assistance. Adam Webb Mortgage Consultant NMLS Unique Identifier #196458 First Charleston Mortgage L.L.C. Toll Free: (800) 968-3987 or email Adam.webb@firstcharleston.com

The real question is the seller's lender going to allow 3% plus HOA and status letter fees. Both FHA and VA will allow seller to contribute towards closing costs, but because you have a shortsale, will the lender allow it?? WilliamAcres.com

At the risk of being a Kill-Joy, It almost doesn't matter what VA will allow, it is what the bank that holds the mortgage will allow. Although VA will allow the seller to pay up to 4% of the buyers normal closing costs, it is doubtful that the bank is going to acept a low-ball offer AND pay all of the costs you indicated. If they allow it, they are probably going to require the seller to bring cash to close to cover those expenses. They would be the ones I would run the question past.