If I wanted to sell my house for $242,000 I would have listed it for that. So how do we make sure I net the amount of money I want for my house, and you get $8,000 paid towards your closing costs VA financing carries? Easy, you offer me $258,000 for the house.
That may sound crazy to you, but it’s done everyday. There’s no law or restriction against offering more than list price for a property. In this example, at $258,000 I can pay $8,000 of your VA home loans closing costs and still walk away with the $250,000 I wanted for the house.
Since you’re using the VA program that doesn’t require a down payment, you’ll now be borrowing $258,000 as opposed to $250,000. Guess what you just did? Yep....rolled in the closing costs. On VA transactions it can be tricky, but this generally does the trick.
So often when veterans ask do you pay closing cost with a VA loan, I respond by telling them “Does a VA loan have closing costs” is the wrong question. A better question is, “With a VA loan who pays closing costs?” And as you can see from the example above this can be negotiated. For veterans looking to buy a home this may be the only VA loan no closing cost option.