You can buy VA foreclosures under the Veterans Affairs vendee financing program, and you need not be a veteran to be able to qualify under this financing program. You can also buy VA foreclosed properties for your own use or as rental investments.
Under the program, you can buy a VA foreclosed home with no down if you pass the eligibility requirements and you are going to occupy the house. The loan amount will be increased by up to 2 percent to pay for closing costs and other expenses.
If you are buying for investment, you need to make a down payment of at least 5 percent. If you have experience in the rental sector, you can include anticipated rent in the computation for underwriting. There are no limits to the number of properties you can acquire for investment.
This vendee financing program will also allow the seller to finance up to 6 percent of the total sales price to cover closing costs, funding fee and other expenses. The loan terms available are 15 and 30 years at fixed rates and there are no penalties for pre-payment.
To find VA foreclosures, visit foreclosuredeals.com. This site has a user-friendly technology that will help you find VA foreclosed properties in the zip code you are interested in.
You can enter your preferences in terms of city, number of beds, baths and price range to facilitate your search. You can also refine your search results by home price range from lowest to highest.
Every page that displays a VA foreclosure on the site includes the photo of the house, the list price, address, type of house, neighborhood map and a short description of the house. The names of the listing agent and the agent's firm, including the photo of the agent, are provided. You can communicate through phone or email.
The Department of Veterans Affairs sells all its foreclosure properties through its property management contractor, BAC Home Loans Servicing LP. But you can take a look at these properties through a local real property broker who has access to local Multiple Listing Systems. The foreclosuredeals.com site described above is another option.
You can buy VA foreclosures and you can take advantage of the vendee financing program if you have adequate income to be able to make the monthly loan payments and if you have an acceptable credit score.