Saturday, October 16, 2010

Veteran's Administration Foreclosures and Vendee Financing

The Veteran's Administration has a wonderful program that allows our veterans to qualify for a home with no money down. It is really a benefit that we extend to service men and women to say thank you. In most cases, it works well. However, the downside is that default rates are higher than properties purchased with 5, 10 or 20 percent down. So even though a bank may have issued the mortgage, the U.S. government is responsible for a defaulted mortgage.

In the VA program they do something unique to move these properties. The VA offers its own financing called VA Vendee financing. So, even if you are an investor, you can qualify for VA financing. Most prospective home buyers and investors do not understand the difference. You Do Not Have To Be A Veteran to qualify for VA Vendee financing.

And, here are a few other facts that make it interesting:
  • Vendee mortgages are assumable by qualification
  • Vendee financing is not a credit score driven product
  • Low interest rates - usually the going rate
  • Owner occupied can be financed as little as 0% down
  • Investors can finance as little as 5% down
  • Investors can use 75% of the anticipated rent to offset monthly payments
  • No maximum number of investment properties.

Join me in Kansas City, Missouri on November 13-14, 2010 to learn more about buying government and bank foreclosures. We will spend one whole day looking at properties that you can purchase right then.