“Are you familiar with the Vendee Program bank of America offers to buyers? It is a VA program offered on a listing I was showing a buyer and I am curious a person in your specialty has opinions on it.”
Vendee financing is a program the VA offers to help finance VA REO properties. The appeal of this is that it’s one of the rare times when a VA loan product or program is available to non-veterans.
According to the Department of Veterans Affairs, there are two terms available—a 15-year and 30 year fixed rate loan, with terms that include 0% down if the property is an owner occupied purchase. The loan can be increased to include closing costs, but the funding fee may NOT be financed.
For non-owner occupied purchases, at least 5% down is required and the VA states “Investors may use 75% of anticipated rent based on appraiser's estimate to offset against the subject property monthly payment.”
Regardless of whether the purchase is classified as an owner occupied or not, this type of home loan is not what the VA calls a “credit score driven product” but for non-owner occupied purchases, the Department of Veterans Affairs stipulates investors must prove they have experience in property management in order to include estimated rent amounts as income in the financing paperwork.
For qualified investors, a big part of vendee financing’s appeal is the fact that there are no limits on the number of properties you can buy under the program—if there’s a list of properties available under vendee financing, you can apply to buy as many as you’re able to invest in.
Again, this program applies to properties in the VA’s inventory of foreclosed homes only. The details sound great to many, but there are a few caveats to be aware of which I will include in my next blog post.
Bruce, fantastic information. Look forward to the next installment.
The Department of Veterans Affairs offers so much in the realm of real estate for active duty military personnel and veterans, we often forget that there are other opportunities out there.
I'm always looking at VA foreclosures, VA HAP property listings and VA assumptions for our home buyers.
Keep the info coming. I love it.
Bruce, good information. Bring on the rest of it.
Anytime the financing spigot can be responsibly opened...is a good thing in this market with not enough buyers. I bought my first house when I was 25 with a VA loan -- I could not have done it without it.
Bruce - Pretty interesting. I've had several VA loans for buyers that helped them get into homes.
Buy a rental property with 5% down? Count me in!
Tell me more....tell me more. Great information that I was not aware of. We don't have many VA financed homes in our area, but there are a few.
I just saw that the other day & forgot to investigate it. Thanks.
A VA loan for someone that is'nt a veteran? I've never heard of that. Thanks for posting. I'm hoping the next installment includes some of your tips on how to find these properties that qualify?
Thanks in advance!
I have sold quite a few VA REO properties and did not know that a non-veteran could get financing through the VA. Thanks for sharing this, I'm definitely going to share it with my readers too.
Thanks for this important piece of information.
Great post worthy of reblog!!
Bruce, Thank you for passing this on. I'm looking forward toward your future posts on it.
Hello,
This is great information. I was not aware such a program existed. Look forward to the balance of the info on your post. Keep it coming.
This is GREAT info! Keep it coming!
Thanks, I will watch for your next post.
Thanks for the info. Definitely looking for your next one!
Thanks for filling us in on this. I had no idea how that worked.
Bruce,,,, some good info. Not sure if this is a name that Bank of America came up with or has changed under the VA... but I have done this kind of loan before, as a primary home before, and never worked for Bank of America or used their services. My first one that I ever did was back in 1995. Basically, the main focus point is that as long as the VA owns the home, that anyone can use the function of a VA loan to buy this house. As far as the investment part and unlimited homes, I was not really familiar with this part.
Bruce - excellent information, thanks for sharing and look forward to the next blog.
Bruce, this sounds like a great program for investors. Waiting to read your next post on the glitches. Thanks for the info.
Bruce,
Thanks for answering my question.
Stan