VA Vendee loans are back for buyers and investors
Vendee loans are loans to help finance the purchase of VA REO Properties. Vendee financing is available for both veterans and non-veterans. Keep in mind this is for VA REO properties only, but is one of the best loans for investors out there. There have been some changes to the program since last year when it was available. Here are some of the in and outs of the program.
Seller (VA) may contribute up to 6% of the contract sales price to pay for closing cost, prepays and other expenses associated with closing. The funding fee CANNOT BE FINANCED.This loan is not credit score driven and they available for 15 or 30 yr at a fixed rate. The interest rates are very competitive and an appraisal is not required for underwriting. The funding fee is still 2.25%.
Non owner occupied still requires a down payment as low as 5% but there is no maximum amount of investment properties. Since there are slim choices for investor loans this is in my opinion one of the better ones. Here is the contact number to get in touch With a qualified vendee representative from Countrywide(soon to be Bank Of America) 800-816-4346. They can get you prequalified and then all you have to do is call me and I will help you find the VA property you want.
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on Friday, April 24th, 2009 at 10:31 am and is tagged 
Countrywide, foreclosures, properties, real-estate, tips, va, vendee.
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May 14th, 2009 at 9:11 pm
I am now attempting to purchase a VA foreclosure and the BOA loan officer is trying to convince me that the Vendee loan is more beneficial to me than the VA loan. I know that certain fees cannot be charged on a VA loan. He has tried to sway me by saying that if the appraisal show discrepancies, then I will have to have them fixed prior to closing. Please can someone help me wit a little advice on all of this. It’s my first purchase and I don’t want to be remorseful afterwards.
May 20th, 2009 at 1:01 pm
I can understand your concern, From my experience the BOA loan officer is steering you in the right direction. If you were to use you regular VA loan entitlement to purchase and repairs came back on the appraisal those repairs would have to be done prior to closing. If you did not ask for lender required repairs up to a certain dollar amount in your initial offer this would present problems on your closing on the property. I consulted with a friend of mine who is a mortgage banker and he says the rules are now that repairs noted on an appraisal cannot be done or paid for by the VA borrower. The vendee loan is a good product and is basically the same as using your own VA without tying up your entitlement. Make sure you ask for 6% towards your closing cost which also can be used to pay the funding fee. The only downfall is the rate is sometimes a little higher. Hope this helped or feel free to give me a call.
July 6th, 2009 at 12:27 pm
How does this vendee financing work? Several websites say its open to everyone and not credit based. I called the 800 number and the first thing they wanted to do was run my credit. Is BOA the only servicer? Just seems fishy to me.
July 29th, 2009 at 10:56 am
Is it true that BOA/VA Vendee only has 1 underwriter?
October 9th, 2009 at 8:14 pm
The Vendee financing is open to everyone, that’s correct. I’ll tell you as I heard it, the most accurate information on its credit basis is that it is based off of credit history, not credit score. As your credit score takes a little longer to recover from bad history, the credit history can and frequently does allow for loans in situations where the credit score would not necessarily do so. I hope that helps!
April 27th, 2010 at 7:24 pm
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May 24th, 2010 at 12:41 pm
Vendee is a good program, if the house does qualify for it. Regular VA loan is a big problem if the
house needs repairs, or you think it needs repairs. Under VA those repairs must be done proir
to you closing, and paid by you out of pocket. The VA program costs more. Vendee is 5% down
or 0 first time buyer. No inspection fee, no inspection, (I have one done away, to protect me) but
its only 150-200, unlike VA inspection was is 400, and alot less is done. 2.25% is waved if you
are a disabled veteran, if not you pay 2.25%, 2500 for closing no matter what the house price is.
You save money that way. Vendee rate is usually 1/2 percent lower than Va. With VA you have to buy points, not with Vendee. Good program overall, I am going through my second one right now.
August 9th, 2010 at 6:18 am
http://www.securedloanlowrate.com/page/2/