VA Vendee Financing Is Available For Real Estate Investors

VA Vendee Financing Is Available For Real Estate Investors

VA Vendee Interest Rate Changes

Effective Aug. 15, 2011, the Department of Veterans Affairs has lowered the interest rate from 4.5% to 4.0% on VA Vendee Financing for VA REO properties sold through Bank of America.  This reduced rate is immediately available to all new VA Vendee Financing.  In addition, Vendee Financing applications currently in process will be eligible to close at the 4.0% interest rate upon approval.

VA Vendee Financing is available to all VA REO buyers, not just veterans. Credit scores are not a determining factor in VA Vendee Financing approvals.

To view VA REO properties, visit va.equator.com. This flier contains more information about the VA Vendee Financing Program.

VA Vendee Financing

Vendee financing is a loan product offered to purchase VA Real Estate Owned Properties. Vendee financing is offered to both veterans and non‐veterans. Some of the guidelines are listed below:

• Seller may contribute up to 3% of the contract sales price in order to pay for closing costs (including the $2500.00 origination fee), prepaid and other expenses.

• Vendee mortgages are assumable by qualification.

• Vendee financing is not a credit score driven product.

• There are two available terms, a 15 and 30 year fixed rate.

• There is a VA funding fee of 2.25% which cannot be included in the Seller concessions.

Owner Occupied purchase:

• Can be financed with as little as 0% down

Non‐owner Occupied purchase:

• Can be financed with as little as 5% down. Investors may use

75% of anticipated rent based on appraiser's estimate to offset the subject property monthly payment.

• Investors must have experience managing rental properties in order to include anticipated rent on subject property in underwriting.

• No maximum number of investment properties.

Many investors have reached the maximum number of properties allowed with conventional financing.  Vendee financing is an excellent program for building a rental portfolio.

 Blooming for you!