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.

One big misconception that I have to explain to clients allot is how companies determine the list of foreclosed properties. Most people guess that they can buy a foreclosure for what is left owed on the original loan that was foreclosed on, or that the price it sold for on the court house steps is what you can get it for. Both of those are good guesses, but they are wrong.

The list price is determined by a number of things that happen right as, or after a property is foreclosed upon. When an agent that works with and list foreclosures gets an assignment they give the companies a Market analysis on the property along with adjustments for repairs. The companies then get an appraisal on the property or get a back up opinion of value. They compare all the information to determine where they will initially list at.

If all the homes in a neighborhood are selling at 100k, and a foreclosure becomes available be sold as-is with no repairs being made needing 5k worth of repairs and all homes selling in under 30 days on the market more than likely it would come out at 96-98k because of low days on the market shows a high demand. The same home in area with the same prices but the homes stay on the market 90 or more days on average would be listed at 92-96k. They will lower the price to try to get it sold quicker because of the cost of maintaining the home.

The Companies with the foreclosures want to sell the property but they will not give it away if they can recoverer some of their expenses because they understand just as well as the investors buying them what they properties can be worth. Check back tomorrow where I will go over some offer strategies.