Guidelines: VA Non-Allowable Fees
Your CALVET loan will be a VA Guaranteed Loan – With your VA Entitlement being used.
Guidelines are set by VA.
Seller must credit all VA Non-Allowable costs when utilizing CALVET Bond Allocated Funds:
- CALVET has a standard 1% Origination charge for all loans financed under our VA Bond Allocated Program. We must comply with VA guidelines. Buyer will pay this 1% Loan Origination fee. Seller has the option to credit this to buyer in escrow if stated in purchase contract.
Otherwise, buyer must pay this Origination fee at closing. - Rates are set per bond allocated rates based on dates of Military Service time.
- CALVET interest rates do not fluctuate daily as do bank market rates.
- CALVET DOES NOT have the option to provide any credits towards the VA Non-Allowable Costs
- CALVET does have a current DPA Closing Cost Program Available to Veterans if needed
- DPA funds can only be applied to buyers allowable closing costs, including 1% origination fee.
- DPA option CAN NOT be used in crediting the VA Non- Allowable Fees noted below
VA guideline states buyer is NOT allowed to pay the noted fees below:
- Escrow Fee
- Escrow Settlement Fees
- Notary
- Doc Prep
- Escrow Postage
- Courier
- Tax Service Fee
- Coordinator fees
- Processing Tie in Fees
- Escrow Processing Fee
- Loan Tie in Fees
- Misc. Servicing Fees
- Attorney Fees (If Applicable)
- All Attorney Fees fall under escrow and title fees
- Buyer can pay the Owner Policy & Transfer Tax per VA guidelines
- This has been an option that has been used over the years in reallocating the fees and credits to comply with VA guidelines
- Calvet has been lending for over the last 100 years and this has shown to be a workable solution on transactions for California Veterans