VA Vendee Program Offers 5% Down Financing For Investors

Again, I turned to the expert, Angella Raisian, for this info.

VA Vendee Program Info & Questions:

VA Vendee Financing Program offers 5% down financing for Real Estate Investors, and is now administered by the Bank of America.  It used to be called the VA Repo, or OCWEN program.

I’m in the middle of qualifying for a VA Vendee Financing Program, AKA Veterans Administration Vendee Financing Program.   I bought a number of homes with the VA Repo program in the 90’s, when they were 0% down, but this is my first time going through the Bank of America VA Vendee Financing (they won the contract from OCWEN, who stunk because I was never able to register with them).

VA Vendee ProgramI loved the program in the 90′S, and I loved getting rental properties with No Money Down that cash flowed immediately.

There are good and bad reviews about the VA Vendee program.   Personally I don’t care, because 5% down for investors is a great financing option (of course you have to qualify for it), but do any of you know of pitfalls to watch out for when going under cotract?

Here re some good and bad posts about the VA Vendee Financing Program:

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


I am working one right now and it is a BITCH. The closing costs are huge. You need to buy it in your name then have it transfered to an LLC as they will not loan to an LLC.

I am dealing with Bank of America and they are not moving an inch on the price. It has been on the market for 90+ days with no price reduction and they will not go less than 6k lower than asking on a 160k property. I think they think that the loan makes the high price worth it?


For more VA Vendee Program Info, go to the next post called  VA Vendee Financing Program Facts & Data.

So guys, any personal experiences with the VA Vendee Program?