United States of Veterans Affairs (VA)
The Department of Veterans Affairs (VA) acquires properties as a result of foreclosures on VA-guaranteed and VA-financed loans. These acquired properties are marketed for sale through a property management services contract with Bank America Home Loans previous Countrywide.
The properties are listed by local listings agents through local Multiple Listing Systems (MLS). Properties for sales may also be viewed on www.REOTrans.com on government site at www.HomeSales.gov. Interested listing brokers and subcontractors may also access www.HomeLoans.va.gov/faqmisc.htm for information on selling VA acquired properties. Buyers must use a Real Estate Professional to submit an offer on a VA Property. VA provides addendums outlining their policy, procedures and timeline for buyer to review prior to submitting an offer. VA’s properties are sold “as-is” and does not have a home inspection policy, therefore all buyers must get acquainted with the property prior to submitting an offer.
The Veterans Administration website is an excellent resource for detailed information about VA guaranteed home loans. If you cannot find the answers to all your questions there, be sure to contact your local or national VA office.
Veterans Administration
Will VA finance the purchase of a VA owned property?
YES, Vendee financing (i.e., Seller-Financing) is available for most, but not all, property sales. With Vendee Financing the down payment requirements are very reasonable, and the interest rate is established by the VA based on the market conditions. Any prospective buyer who requests VA financing to purchase a VA owned property must have sufficient income to meet the loan payments, maintain the property and pay all taxes, insurance, utilities and other obligations, and acceptable credit. The buyers must also have enough funds remaining for family support.
DO I have to be a Veteran to purchase a VA owned property?
No, all VA Properties are available for sale to both Veterans and non-Vets.
VA Vendee Financing
VA has re-opened VA Vendee Financing to purchasers of Vendee eligible VA REO Properties. Vendee financing is a loan product off to Veterans and non-Veterans to help finance the purchase of VA REO Properties.
Some of the guidelines are listed below
· Seller MAY contribute up to six percent of the contract sales price to pay for funding fee, closing costs, prepaid and other expenses.
· Vendee mortgages are assumable by qualification
· Vendee financing terms of 15, 20, 25, 30 year fixed rate
· Interest rates are determined by the VA
· Mortgage insurance is not required
· Tax Service Fee, Appraisal Fee, Flood certification or prepayment penalty are not required
Owner Occupied Purchase
· Amount financed with as little as 0% down
· The loan amount may be increased up to 2% to finance closing costs, pre-paids or other expenses
· The Funding fee may not be financed
NON-Owner Occupied Purchaser ( INVESTOR )
· Amount financed 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
VA Vendee Financing Details
· VA properties are sold “as-is” condition
· Closing fee is $500.00 plus normal closing costs
· A $350 loan application fee is also required – Vendee Loan
· Pre-approved letter and proof of funds for your down payment and closing costs with offer
· For VA Vendee Financing, you will need to provide a recent original pay stub, recent bank statement showing that you have funds available to close, signed copies of your federal tax returns for the past two years. If Self-Employed, in addition to the tax returns, you will need a year-to-date profit loss statement, prepared by an accountant.
· No Financing or inspection contingencies what purchase a VA-owned property
· The buyer will have 10 days to provide all necessary documents for processing
· Closing timeline is 30 days
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