My closing costs on a $415,000 home loan in Florida are $20,000. Is that about right?

This can’t be answered without looking at many more details, such as who is paying title insurance, if it’s including escrows, and if it’s exempt from a funding fee. It’s too difficult to provide everything that’s needed to be able to answer the question in a public forum since personal information will need to be addressed, such as debt to income ratios and a credit score.

The good thing about the Vetted VA Facebook group is that people can post their questions, have someone speak to them offline and let them know if they’re getting a good deal or not.

Our escrow was calculated incorrectly and our payment is going up $400 per month. What caused this?

There could be many things causing this. Housing values are increasing and the account is depleting faster than anticipated. Or a mistake was truly made and the speculated costs were off. It sucks either way but usually you’re not getting screwed. This situation is actually frequently occurs on new construction homes. For example, the property to be built on can be worth $90,000, but then a $300,000 home is built on it, which makes the taxes skyrocket.

Will it be a “Buyer’s Market” Again?

Maybe, but it’s hard to predict. There’s a real housing shortage. There’s a backlog of homes being built from the last recession. Supply is limited and there’s a large generation of millennials coming into prime home-buying age. However, supply is limited, but there is also less demand. The supply/demand imbalance makes it difficult to predict.

Connect with a Vetted VA Professional. 

Can you really close a VA loan with no money down?

Yes, there’s no down payment required for a VA loan. What gets people confused is there’s no down payment versus no closing costs. VA loans have closing costs just like any other loan. They must get paid by somebody. It might not be the buyer, but someone will. Whether it’s part of a higher interest rate or a lender credit that goes towards the closing costs, they will get paid.

You also can’t just roll the closing costs into the loan like someone may have ten years ago or so, when it was a buyer’s market. Or the seller opts to pay the closing costs, which is rare these days. It can happen occasionally when the appraisal comes in higher and then they ask for seller credit, or if something comes up on the inspection.

Ask a Vetted VA Professional more about no money down. 

Can we used disability income to qualify for a loan?

Yes, since it’s tax free, you can gross it up by about 25% so it also works well for the debt-to-income ratio calculation.