In order to make your VA transaction a true “no money down and no closing cost transaction” you must request credits for closing costs. These credits usually come from the seller, lender, VA, IRS, FTB or real estate agent.
In a standard VA finance transaction, the VA borrower may not pay certain closing costs. These costs are known as non-allowable closing costs. Other closing costs can be paid for by the buyer. These closing costs are known as allowable closing costs.
VA Home Loan Centers is offering a $500 cash credit for all new applications. This credit can be used to cover allowable or non-allowable closing costs or cash rebate.
To claim your credit, you must purchase or refinance a home directly through VA Home Loan Centers.
Credit will appear on the final HUD. Cash credit will not be granted until the close of escrow.
The transaction must feature either 1) a funder provided yield spread premium or 2) sufficient third party capital contribution to VA Home Loan Centers equal to twice the rebate amount.
Minimum loan amount limitations may apply. Borrower may not receive higher rebate than expended capital contribution or violate Veterans Administration loan guidelines or any Federal, state or local municipal law.