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.

Now that changes to VA foreclosures have been in place for a few months I wanted to try to explain how the new system works and where to get the info on it. Last year Ocwen Loan Serving LLC lost their contract to manage VA foreclosed properties and it was awarded to Countrywide. When the transition finally to place so did the way offers are placed made and this month a new roll out for the VA vendee financing.
Offers are now placed on regular offer to purchase forms for the state or area the property is located with Countrywide addendum’s attached instead of all the VA generated forms such as their old VA form 26-6705. The Countrywide addendum’s say pretty much the same things that most Bank or Corporate owned addendum’s say, buying as-is. Make sure to ask me and I can forward a blank copy for your review. All the properties are listed on a new site as well https://va.reotrans.com or you can go to www.reotrans.com and see all bank or corporate listings on their site. This is a user friendly free site and homes are easy to locate for different cities and states. It will also list the contact information for the agent handling the property. If you are working with agent have them contact the listing agent.
In my opinion all the changes thus far have been for the better. The pricing has been more competitive and in line with other bank and corporate owned properties. Real estate here in Fayetteville NC has been insulated and not hit as hard as real estate in other areas of the country. There are still a lot of foreclosures that have been held off the market because of the moratorium but they should start to trickle out any time now. Look for more articles and information coming soon on Vendee financing.