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VA Veterans Selling home & funding fees?

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  • Elder

Anyone know  if the realtors can charge funding fees to the veteran as the seller? to include all title search and  title fee transfers   document fees  and  any and  all fees encounter at time of the transaction?..these funding fees can add up just don't seem right to me?

I know when we buy A HOME through VA Loans The Veteran has the funding fees waved  and just pay a minimal closing cost based on the home perches price, if the veteran is currently active duty or is a disable veteran getting a VA compensation monthly payment. 

but when a Veteran sells the home the funding fees are astronomical . (depending on the sale price)

Our Realtor mention that we will need to come up with funding fees of around 14000/15.000 at closing when we sell  Our Home based on our home? the  selling price of 275.000$$  for funding fees? For ALL Funding fees?   Not much in escrow account beings I get the property tax exemption.

This don't seem right to me   its going to cost me 14.000./15.000 $ just to sell my home  for 275.000? For title search and any other fees that are encountered at time of closing.

I do understand I would pay some closing fees and transaction fees around 3.500 /4.500 maybe 5000..but not 14.000/15.000??

Anybody know what the funding fees should be or close to it  ?  based on the sale of my home at $$275.000  the profit or the difference I would make selling my home is only 13.000  balance on my home is 262.000 the pay off is close to that.


Anybody know? or who have bought and sold homes using the VA Loan eligibility. 

Please fill me in if you know!!!

In Advance I sincerely Thank you all.


Edited by Buck52
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Buck are you referring to realtor fees which is 6% of the sale price? If so yes they can charge that at closing, you will also have a few other fees when you sell your house. This is common no matter the type of loan. As veterans we save when we buy but not when we sell.

You can deduct those cost on your income tax (I don't believe it change with the new tax law that passed last year).

Have you thought about selling the house yourself? I have done that in the past and it really is not that hard. If you do try to sell it yourself and you are close to a military installation see if they have anyplace for you to post the house. There is also "Military by Owner" which caters to military personnel that may PCS.

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  • Elder

6 % Is pretty high for realtors fees and not count all the other fees.

our realtor said she is only charging us less than 1% at closing  so this is what I don't understand...

we ask her why are the selling fees so high she just said well there's other funding fees at closing  like title fees title document fees from the  title company and other fees that will need to be paid at closing.

 we don't understand why the fees will add up to 14.000/or even 15/000$$ to sell our home  depending on what all the fees they throw in at closing...and we are not paying for the buyer closing cost.

We sold our last home which was a VA Loan   and at closing we only paid about 6.000.00 at closing  based on 200.000 selling price...but we did have a larger profit or difference in what we owned on that home  the pay-off was around 137.00 and we got 200.000 for the home and after they took out our closing fees  we got a 70.000.00 cashier check  so actually they only took about 3.000.00 out at closing.

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Closing costs are negotiable between buyer and seller within limits.  Normally, the seller guarantees good title to the property..this usually means title insurance.  

They seller paying the funding fee simply makes it easier to land a buyer.  Many/most buyers dont have the down payment, funding fee, etc.  It sounds like your property is difficult to sell, so buyers are scarce and demand the seller pay the closing costs.  

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  • Elder

Thanks Paul and broncovet

It's just to complicated for me /my better half.

   I guess whatever they come up with at closing we will have to pay and out of pocket because the closing funding fees will be more than we get  the difference in the pay off of the house.

Maybe we should think about going up on the price of the house?  so for no buyers ...> just lookers..

I was thinking of coming down on the price but we really can't.

Realtor said we need to just keep it at 275.000

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