VA NON-ALLOWABLE CLOSING COSTS:

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VA mortgages are a great way for those who served in the United States Armed Forces to purchase a home. Many Southern California sellers have rejected offers using VA financing because they believe they are required to pay certain closing costs for the buyer. We call those closing costs “non-allowables” because the VA won’t insure the loan if the veteran pays them.

Read the rest here: http://www.zillow.com/blog/mortgage/2010/01/23/who-pays-va-non-allowable-closing-costs/