Section 8: Mortgage Insurance Premium Payments and VA Loan Funding Fees

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These are limited to the lesser of:

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  • the single premium for the actual amount of the mortgage insurance, or
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  • the amount required to secure mortgage insurance for a mortgage on the replacement property that does not exceed the remaining principal balance of the mortgage on the displacement property.

This does not apply to mortgage insurance premiums paid in installments by homebuyers.

Title insurance is normally provided by the seller of a residential property, and the premium covers most of the services rendered by the title company. If the cost of title insurance must be paid by a displacee, reimbursement of his cost is limited to the cost of title insurance for the comparable property used in computing the displacee’s replacement housing supplement.

Purchaser points and loan origination or assumption fees that do not represent prepaid interest are eligible for reimbursement.

Only basic information is included in the above guidelines. Other incidental expenses may be eligible for reimbursement if TxDOT determines they are normal for residential real estate sales in the area. ROW PD determines whether these other expenses are necessary and reasonable and may coordinate the determination with the ROW Program Office before making any commitment to pay the expenses.

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