The U.S. Department of Veterans Affairs’ (VA) has re-opened Vendee Financing to purchasers of Vendee eligible VA REO Properties.
VA Vendee Financing
Vendee financing is a loan product offered to individuals to help finance the purchase of VA REO Properties. Vendee financing will be offered to both veterans and non-veterans.
Some of the guidelines are listed below:
• Seller may contribute up to 6% of the contract sales price to pay for funding fee, closing costs, 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.
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 against the subject property monthly payment.
• Investors must have experience managing rental properties to include anticipated rent on subject property in underwriting.
• No maximum number of investment properties.
Owner Occupied purchase:
• Can be financed with as little as 0% down. The loan amount may be increased up to 2% to finance closing costs, prepaids or other expenses. Funding fee may not be financed.
