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Updated about 2 months ago, 11/13/2024

User Stats

111
Posts
61
Votes
Alex Winfield
Pro Member
  • Real Estate Agent
  • Norfolk, VA
61
Votes |
111
Posts

Any solid info on VA Vendee financing? Any lenders?

Alex Winfield
Pro Member
  • Real Estate Agent
  • Norfolk, VA
Posted

Just got an inquiry in an REO group I host about a VA Vendee loan. I honestly had no idea what he was talking about, but when he mentioned VA loan"ish" on an investment property for 5% down I figured it was worth a little research. I'm having trouble finding any real solid information, experts, or sources on the subject, so I figured I would reach out to the BP community. Any guidance would be greatly appreciated as I live next to the largest Navy base in the world in Norfolk VA. Keeping fingers crossed for a sweet new tool to add to the investor belt!

Thanks! 
Alex 

  • Alex Winfield
  • User Stats

    118
    Posts
    54
    Votes
    Kevin Sack
    • Rental Property Investor
    • Clovis, NM
    54
    Votes |
    118
    Posts
    Kevin Sack
    • Rental Property Investor
    • Clovis, NM
    Replied

    Alex,

    Did a quick Google search and it appears to be foreclosed homes that were funded with VA loans. Here's the two pages I read that gave a quick breakdown of the requirements of some gotchas of the program.

    https://benefits.va.gov/BENEFITS/factsheets/homelo...

    https://budgeting.thenest.com/va-vendee-loan-24090...

    Kevin

    User Stats

    111
    Posts
    61
    Votes
    Alex Winfield
    Pro Member
    • Real Estate Agent
    • Norfolk, VA
    61
    Votes |
    111
    Posts
    Alex Winfield
    Pro Member
    • Real Estate Agent
    • Norfolk, VA
    Replied

    I appreciate the info on that.  Those links are helpful.   It all seems pretty feasible and attractive, but curious if there are many lenders or investors actively taking advantage of the program.   As good as it sounds its just hard to believe everyone and their brother isn't taking advantage of it.   

  • Alex Winfield
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    User Stats

    2,702
    Posts
    2,233
    Votes
    Patti Robertson
    Property Manager
    • Property Manager
    • Virginia Beach, VA
    2,233
    Votes |
    2,702
    Posts
    Patti Robertson
    Property Manager
    • Property Manager
    • Virginia Beach, VA
    Replied

    It's a great program. The loans are a little more expensive than a freddie/fannie loan, but the big benefit is that they are assumable.  If 8 years if rates have spiked and you have a loan in the low 5s, that will have more value than a house that has to be financed at higher rates.  From what I understand, the lender will be property specific, because whoever has the foreclosure has to finance the new buyer's vendee loan.  The lender should be noted in the agent remarks of the listing.

    • Patti Robertson
    • 7574722547

    User Stats

    111
    Posts
    61
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    Alex Winfield
    Pro Member
    • Real Estate Agent
    • Norfolk, VA
    61
    Votes |
    111
    Posts
    Alex Winfield
    Pro Member
    • Real Estate Agent
    • Norfolk, VA
    Replied

    Thanks for chiming in Patti! It would be great if there was a way to find out which banks offered the Vendee loan so we could target them a little better. I agree with you on the value of the assumable VA loans as interest rates continue to go up. Those 4% loans are going to be worth a whole lot if interest rates make it into the 6's and 7's. Seems like Vendee program might be a good vehicle to capitalize on the VA foreclosures in our area. Patti, do you know any lenders in our area that rep this product? Or does anybody know any national lenders that specialize in these?

  • Alex Winfield
  • User Stats

    159
    Posts
    59
    Votes
    Ty L.
    • Investor
    • Northern Virginia
    59
    Votes |
    159
    Posts
    Ty L.
    • Investor
    • Northern Virginia
    Replied

    Thanks everyone for the information.  I just inquired with a listing agent about a property that stated it may be eligible for it.  I'll keep you posted.

    User Stats

    133
    Posts
    83
    Votes
    Tandi H.
    • Investor
    • Albuquerque, NM
    83
    Votes |
    133
    Posts
    Tandi H.
    • Investor
    • Albuquerque, NM
    Replied

    I'm trying to get this loan product - what a confusing system! I found a property listed on the MLS that mentioned Vendee financing may be available. I contacted the listing agent, who was clueless, but directed me to the VRM Mortgage Services website. So I called the number on the VRM website, and their customer service agent basically couldn't tell me anything, except to go to the listing page (on the VRM website), and click for financing. A box pops up and you put your name and email. She said someone will contact me (but couldn't give me any idea of how long that would take) and that all communications will happen through email. There's no phone number to call to reach an agent.

    It seems pretty weird and convoluted but I'm going to try it out and see how far I can get.  

    User Stats

    111
    Posts
    61
    Votes
    Alex Winfield
    Pro Member
    • Real Estate Agent
    • Norfolk, VA
    61
    Votes |
    111
    Posts
    Alex Winfield
    Pro Member
    • Real Estate Agent
    • Norfolk, VA
    Replied

    Thanks for sharing. I believe it is a lender that is going to reach out to you.  Please let us know if you anybody contacts you back and if they provide any info.  I haven't had much luck getting solid information on it either. 

  • Alex Winfield
  • User Stats

    1
    Posts
    1
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    Replied

    Any updates on Vendee lendors?

    User Stats

    96
    Posts
    36
    Votes
    Troy Bailey
    Pro Member
    • clayton, NC
    36
    Votes |
    96
    Posts
    Troy Bailey
    Pro Member
    • clayton, NC
    Replied

    Anyone have an update on this unicorn?

  • Troy Bailey
  • User Stats

    21
    Posts
    8
    Votes
    Bill Krenz
    • Fairbanks, AK
    8
    Votes |
    21
    Posts
    Bill Krenz
    • Fairbanks, AK
    Replied

    @Alex Winfield From what I found out is you need to make a offer on the property. If they accept the offer then the lender will contact you and see if you can be approved for the financing. After you are approved you will have 7 days for the inspection and can walk away in that time space. But the properties are as is. You won’t be able to lower the price if you find anything just are able to walk away if something is majorly wrong. There a special sheet you need to fill out when you make the offer to use the Vendee financing. The plus side is no limit how many and 5% down or 1% if owner occupy. I made an offer a place a couple weeks ago but somebody else won it. Hope that helps.

    User Stats

    111
    Posts
    61
    Votes
    Alex Winfield
    Pro Member
    • Real Estate Agent
    • Norfolk, VA
    61
    Votes |
    111
    Posts
    Alex Winfield
    Pro Member
    • Real Estate Agent
    • Norfolk, VA
    Replied

    Bill, thanks for the input! 

  • Alex Winfield
  • User Stats

    1
    Posts
    1
    Votes
    Ginger Atkins
    • Winston Salem, NC
    1
    Votes |
    1
    Posts
    Ginger Atkins
    • Winston Salem, NC
    Replied

    Does anyone know the timeline or process for getting an offer accepted on one of these properties? I submitted an offer and there hasnt been a response. I am wondering what the turnaround time is?

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    User Stats

    133
    Posts
    83
    Votes
    Tandi H.
    • Investor
    • Albuquerque, NM
    83
    Votes |
    133
    Posts
    Tandi H.
    • Investor
    • Albuquerque, NM
    Replied

    Just to follow up - 

    We put in an offer close to asking.  Started moving forward with the Vendee lender who did respond to the email I sent through the website (see previous comment).  Then never heard back from the selling bank.  Even the lender, who supposedly has the inside scoop, didn't know what was going on.  Our real estate agent was also not able to turn up any info.  Weeks went by.

    The Vendee lender's agent seemed pretty much like dealing with any mortgage lender - asking for all our financial paperwork, taxes, etc.  As I hadn't heard back from the seller, we didn't make an effort to move forward that quickly.  I had the feeling it wasn't going anywhere.  Finally after about a month, the Vendee lender let me know he got a message that another offer was accepted.  

    So I think it's pretty much like getting any mortgage, but there is a definite lack of communication or clarity from the selling bank (VA).

    User Stats

    2
    Posts
    2
    Votes
    Replied

    My daughter and I are considering an offer for a property that list Vendee Financing May Be Available.  Has anyone had any success with getting Vendee Financing and/or assuming a Vendee Loan?

    User Stats

    1
    Posts
    2
    Votes
    Michael Neal
    • Charlotte, NC
    2
    Votes |
    1
    Posts
    Michael Neal
    • Charlotte, NC
    Replied

    New American Financing seems to be the only lender that is dealing with this program. You can find the properties through this website: https://listings.vrmco.com/

    Just a word of caution for anyone with student loans, New American's qualifying criteria are similar to FHA - when calculating DTI, they will use 1% of your outstanding student loan balance rather than your actual monthly payment. If anyone finds out something different, please share. Thanks!

    User Stats

    12
    Posts
    7
    Votes
    Alison Evans
    • Rental Property Investor
    • Havre de Grace, MD
    7
    Votes |
    12
    Posts
    Alison Evans
    • Rental Property Investor
    • Havre de Grace, MD
    Replied

    does anyone know if the vendee financing will let you purchase with a llc or corp? I found a property I'd like to offer just waiting to hear back from the vendee bank.

    I actually used this product back in 2012. It was awesome but then it disappeared for years. I'm stoked to see it back! A lot has changed with it - before bank of America was servicing the loans. My portfolio has changed since then too whereas before I was buying in my personal name and now I have a corporation. I'm hoping this program can still be utilized. 

    User Stats

    111
    Posts
    61
    Votes
    Alex Winfield
    Pro Member
    • Real Estate Agent
    • Norfolk, VA
    61
    Votes |
    111
    Posts
    Alex Winfield
    Pro Member
    • Real Estate Agent
    • Norfolk, VA
    Replied

    I'm pretty sure they will not. It is basically a VA loan and from my experience, you have to purchase as yourself and then change into your LLC after close. I am of course no expert on this, but for logistical purposes, I would assume No and ask if you can as you go. It would be great if we could find a lender who specifically works with these to chime in!

    Has anyone had success in the last 12 months with a VA Vendee loan?   

  • Alex Winfield
  • User Stats

    136
    Posts
    55
    Votes
    Travis C.
    • Investor
    • San Antonio, TX
    55
    Votes |
    136
    Posts
    Travis C.
    • Investor
    • San Antonio, TX
    Replied

    @Alex Winfield I've closed 2 of these in the past year with 1 (possibly 3 in flight) currently. It is a great program! As an investor and disabled veteran (although you do not have to be a veteran), I am exempt from the VA loan funding fee too. 5% down on 30 year notes most recently at 4.5% is legit.

    User Stats

    1,145
    Posts
    871
    Votes
    Mark Sewell
    • Investor
    • Houston, TX
    871
    Votes |
    1,145
    Posts
    Mark Sewell
    • Investor
    • Houston, TX
    Replied

    So do you get prequalified somehow for the vendee program?  Or do you just go make an offer and see what happens?

    User Stats

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    6,297
    Votes
    Andrew Postell
    Lender
    Pro Member
    #1 Creative Real Estate Financing Contributor
    • Lender
    • Fort Worth, TX
    6,297
    Votes |
    7,910
    Posts
    Andrew Postell
    Lender
    Pro Member
    #1 Creative Real Estate Financing Contributor
    • Lender
    • Fort Worth, TX
    Replied

    @Mark Sewell it's pretty basic but it is as people describe it above.  You see a house that is listed for sale, click on a box, enter 3 things...and eventually someone gets back to you.  They do go through a process of prequalifying you in a way but it is more property based to get it started.  

  • Andrew Postell
  • User Stats

    1
    Posts
    2
    Votes
    Replied

    What is the credit requirements they look at? Bankruptcy allowed?

    User Stats

    509
    Posts
    134
    Votes
    Jared Vidales
    • Scottsdale, AZ
    134
    Votes |
    509
    Posts
    Jared Vidales
    • Scottsdale, AZ
    Replied

    I wanted to bump this thread. Any one close these?

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    User Stats

    4
    Posts
    7
    Votes
    Replied

    Currently in the process of purchasing a VA REO with a Vendee loan. I have bought & sold many houses but this is a first for the Vendee program for me. New American Funding is the institution I am working with.

    I haggled with the bank for about a week and finally got them to accept $10,750 below asking with 2% seller concessions.  

    User Stats

    30
    Posts
    5
    Votes
    Rick Grimsley
    • Investor
    • San Diego, CA
    5
    Votes |
    30
    Posts
    Rick Grimsley
    • Investor
    • San Diego, CA
    Replied

    Nice work Stephanie!  What seller concessions did you ask for?   Also what percent is the funding fee, 3.5?

    User Stats

    2
    Posts
    3
    Votes
    Replied
    Stephanie- I am in the market to buy a home and I am also a licenced Real Estate agent. I would like to know more about the process of purchasing a vendee approved property. I asked several lenders about the Vendee loan, and no one knew anything about it. I would love to know step by step of what to do to acquire this property. Can an offer be made, or is the price firm? Where do i find a lending institution in my area that works with Vendee loans? ;-)  Akemi Watkins #0722601

    Originally posted by @Stephanie Olejownik:

    Currently in the process of purchasing a VA REO with a Vendee loan. I have bought & sold many houses but this is a first for the Vendee program for me. New American Funding is the institution I am working with.

    I haggled with the bank for about a week and finally got them to accept $10,750 below asking with 2% seller concessions.