VA Lender Property Tax Impounds Increase Closing Costs in California

VA borrowers in California must plan in advance for property tax impounds in California. This can be a substantial part of your total closing costs when you get a VA loan to buy a house in California or complete a VA refinance loan. On every VA loan, the VA lender will collect a certain amount of months of property taxes up front a closing. The amount of property taxes depends on the closing date. Below is a chart of the amount of property tax impounds collected at closing by VA lenders in California:

Date close	Number of Months Property Taxes Collected
January	6 mos & 1^st half paid
February	0 mos & 1^st and 2^nd half paid
March	2 mos & 1^st and 2^nd half paid
April	3 mos & 1^st and 2^nd half paid
May	4 mos & 1^st and 2^nd half paid
June	5 mos & 1^st and 2^nd hald paid
July	6 mos & 1^st and 2^nd half paid
August	7 mos & 1^st and 2^nd half paid
September	8 mos & 1^st and 2^nd half paid
October	9 mos & 1^st and 2^nd half paid
November	4 mos & 1^st and 2^nd half paid
December	5 mos & 1^st and 2^nd hald paid

So as you can see property tax impounds VA lenders in California collect can be a very large part of your closing costs that have to be planned for. In addition, the VA lender will collect your prorated share of the 1st or 2nd installment of property taxes due in addition to the impounds.

When you get a VA loan to purchase in California, it can be a good strategy to have your Realtor ask the seller to credit you up to 4% of the purchase price for closing costs. This can help offset the large cost of property tax impounds required at closing by VA lenders.

Don’t hesitate to email homeloan8@gmail.com or call at 858-922-7899 if you would like to be approved for a VA loan in California.

Regards,

Rob Chomentowski

858-922-7899

Sr. Loan Officer (and VA specialist)

homeloan8@gmail.com