Does the VA pay for purchase agreement fees? With the builder I am going with they are stating that I have to pay 5% down. Is this something that the VA will fund?

I have never heard of it called purchase agreement fees? Are they saying that they want you to put money into it, so you have something in it. Or are they just talking about earnest money? Money that you are putting down to show them that you are true to the contract. Either way I am pretty sure VA doesn't, I have never had them pay that for anyone. But if it is just earnest money then go ahead, and you should get that back at closing. Don't forget that the builder has to pay some of your fees. You could also ask your mortgage broker, they should know.

That's earnest money. No the VA doesn't pay earnest money. Just remember if you break your agreement with the builder after you have paid the earnest money you will lose it. I.E. you fail to get funding, etc. I would negotiate a clause with the builder for the earnest money since most builders are hungry for buyers now. Maybe you can get it reduced by 50% or have a clause stating that if you fail to get funding half is returned to you.

Also, builder's contracts are the most aggregious out there. Make sure it is indicated as a VA loan up front. With 5% upfront, you should be getting money back at closing.

Paul
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