In a VA loan, what is the limit on the seller's contribution towards the buyer's non-recurring closing costs?

In a VA loan, the guidelines established by the Department of Veterans Affairs actually state that there is no limitation on the contributions a seller can make toward the buyer's non-recurring closing costs. This means that sellers can assist with covering these costs without a capped amount, which can be a significant benefit for buyers in securing a loan. Non-recurring closing costs typically include expenses like appraisal fees, title insurance, and recording fees.

This flexibility helps buyers to minimize their upfront expenses, making homeownership more accessible. The absence of a limit enhances the VA loan program's appeal, as it allows for greater negotiations between the buyer and seller, ultimately aiding veterans and active military personnel in obtaining housing.