explain no cost va mortgage please?

Greg, I do not know where you saw a no cost va loan. If you did you need to read the fine print. There are Lender and title company charges that need to be paid. Lenders can increase the rate on the loan to allow them to pay the Costs for you. I would be happy to talk with you, and explain the two options that come to mind. First you can pay the higher rate to have the closing costs paid by the lender. Second you can request the seller of a property to pay them for you. Saying that they may want a higher sales price because of that, so is it really a deal. There are pros and cons. I would be happy to talk with you. You will find my Ohio license infomation and phone number on my profile page.

Hi Greg, Tim is absolutely right --- there are costs. Yes, with your score you should have no troubles getting financing. Here are three different options for 'no cost' loan or better phrased no cost out of your pocket loan: 1) when you make your offer you ask the seller to pay 100% of your closing costs and prepaids 2) you work with a down payment assistance program - to go towards closing costs 3) consider asking for a higher interest rate to give you a rebate/credit to offset your costs. If I can answer any add'l questions, I'd be happy to help. Best wishes otherwise, Kimberly Lawson, Licensed Mortgage Loan Originator - Ohio only. Contact and licensing information can be found on my profile.

Greg,Each company is different in regards to the cost structure on VA financing. Our company does not charge any fees for a VA financing. However, as a borrower you always have the cost associated with the title company services and the government recording fees to contend with. You can obtain a true no cost settlement by accepting a rate slightly higher than the best rate offered.At the market rate (or best rate offered that day) the cost associated with the settlement does have to be financed into the loan or paid at the time of closing (by either the veteran or the seller). The "no cost" option will typically come with a rate .25% higher than the "market rate" on any given day. This can vary depending on your loan size and credit score. Generally the "no cost" option is good if you believe you will be in the home for 5 years or less. If you plan on staying in the home for a longer period of time, the lower rate will often prove to be more cost effective.I think the important thing to take away is that the answer is YES, you can obtain a VA loan with no cost BUT that may not always be the best option for you. An originator that is worth giving your business to will show you a 1.)no cost option, a 2.)best rate option and 3.)something in the middle. The decision of which option is best will likely come down to how long you plan to stay in the home.If I could be of assistance please do not hesitate to contact me at 216-245-LEND (5363).Best Regards,Michael T. BardySenior Loan Originator #234079www.MichaelTBardy.com

If you did see that or someone said that I think they were meaning you can pay for all of your closing costs through the interest rate. VA offers 100% financing so for a little increase in the interest rate you can get a lender credit to pay towards if not all your closing costs. You are still paying for them, but instead of cash at closing you are including it in your rate and paying it over the time you have the loan. I would do cost vs benefit scenario so you can see if this makes sense for your situation or not. Your loan officer can help you with this. Best wishes, Sean

Hi Greg, Thank you for your service. "A no cost VA loan" is just an advertising hook used to get people to pick up the phone or walk in the door. Once you do that, the next step is to "sell" you or set the hook. With that being said, there are no free lunches but there are a couple of ways to mitigate your out of pocket costs. 1) Ask the seller to cover your closing costs through seller concessions. 2) Have the lender pay them but that means you're going to get a higher interest rate. Now the next thing to understand is there are expenses when buying a home that you will need to pay upfront like your earnest money deposit which can be returned at closing but you will need to provide it upfront and the cost of a home inspection. Please feel free to contact me for more information or help. John Burke | Senior Mortgage | Great Plains National Bank | http://www.valoansdoneright.com | (877)228-9069 | Lending in ALL 50 states |

As you see from other answers, there are costs to every mortgage - the question is who pays them. Usually the process of buying a home results in about $1000-1200 or more in out of pocket costs which includes: earnest money, home inspection - not required but highly recommended - and a deposit against the cost of the appraisal. With a VA loan it may be possible to get up most of that money refunded to you at closing either through negotiating for the seller to pay you closing costs and prepaid expenses (meaning you effectively have paid a little more for the house), or the lender helping - which we do by manipulating the interest rate (higher) so you end up paying back those costs over the life of the loan. Many of my borrowers are ok with these options because $4000 toward closing costs and prepaid expenses from either the seller OR the lender generally means about $20-25/mo higher in mortgage payment but for those who are tight on cash this works out ok for them. Hope that is helpful. Bottom line: work with an experienced and reputable mortgage lender who will take the time to explain these details to you.