There are certain fees that the seller must pay in FHA and VA loans.
A realtor who has a long history selling homes in the South Bay asked me this week what their seller “has to pay” for the buyer. Her seller does not want to pay and they got an offer from a veteran (not my client). The offer said that there were $5000 in fees that the seller “had to pay”. I told her that this is not true. FHA eliminated all standard fees from the “non-allowables,” as they used to be called.
VA has one fee, the tax service that the veteran cannot pay, which is $69 with our tax service provider, and we cover it for the veteran. So the idea of non-allowable fees in closing costs is soooo 15 years ago. Why would a professional not know that? Well, here in the South Bay there just haven’t been very many FHA and VA loans in the last 5 years, so people get out of practice. Keep in mind that the average top producing realtor in the South Bay sells or helps a buyer buy 2 x per month.
I do 6-10 per month and my office 40 per month. We hear more stories and trouble shoot more situations, and so it is possible that a realtor might be rusty on lending rules. That’s what we are here for.