All Forum Posts by: Robert Steele

VA.REOTRANS.COM
va.equator.com

I have access to the MLS and just search for "veteran" in the seller name to match Department of Veteran Affairs. Another hint is if it is a foreclosure and you need a pre-approval letter from BoA.

VA Vendee Quick Facts:
• Any purchaser can apply for Vendee Financing. You do not have to be a Veteran.
• Vendee Financing is available for non-owner and
owner occupied.
• Low Interest Rates
• The seller may contribute up to 6% of the contract sale price for closing costs.
• 2.25% VA Funding Fee
• No pre-payment penalties.
• An appraisal is not required for underwriting.
Non-owner occupied only:
• No maximum number of investment properties.

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.
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.

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.

Are you kidding? this program is awesome for investors!!

5% down, and a 4.5% rate of the _entire_ 95% of the balance!, no PMI either folks, cha ching! Up to 6% towards closing costs. No appraisal. No # mortgages limit. Seasoned investors can even use 75% of appraised rent for the property being bought towards calculating debt to income ratio. Still need convincing?

The VA fee is 2.25% which is 100% deductible in the first year as qualified mortgage insurance. It's basically prepaid PMI and because its VA its "qualified".

BoA charges a flat $2500 for closing costs and VA wont pay title policy so don't bother asking.

The quality of the properties seems to be much better than the average foreclosure in my area. I just closed on one with no deferred maintenance and got it rented in two weeks. I am closing on another this coming week that needs just a couple grand for cosmetics.

The closing process is a bit of a brow beating as far as documentation is concerned. I swear I thought they were going to ask for my first born too. But I guess that is par for the course now giving the new lending market risk aversion.

As another poster mentioned they are real miserly on coming down on the price. I've found that by being patient and waiting until the first price adjustment (usually around 3 weeks on market) then coming in 3-6% below usually seals the deal. Don't freak out if someone else beats you to it. About half the contracts these days are falling through so you'll probably get a second chance.

I have found that a property with these financing terms cashflows easily. I'll continue to snap them up as they come on the market :mrgreen: