If you're thinking about buying a VA-owned property, Vendee Financing
may be an option for you. Unlike VA Loans, which are guaranteed
by the Department of Veterans Affairs (VA) and only granted to U.S.
Veterans and their spouses, VA Vendee Financing is available to
Veterans and non-Veterans alike.
Compared to traditional mortgage loans, Vendee Financing requires
fewer fees and less money out of pocket. You'll enjoy the unique
benefits of a low - or even no - down payment; no mortgage insurance;
no tax service fee; no appraisal fee; and no flood certification
fee.
For more information, click the links below.
PROGRAM TERMS AND CONDITIONS
Borrower |
Veteran and Non Veteran are eligible |
Terms |
Terms from 15 to 30 years are available in 5 year increments. |
Fixed Rate |
Effective February 13th The Department of Veterans Affairs changed their Interest Rate from 6.5% to 6.0%. All new offers as well as offers currently in process and scheduled to close February 13th or after will receive an interest rate of 6.0% for Vendee Financed Loans.
Interest Rates are set by the Department Of Veterans Affairs and is currently 6.0%.
For example, on a loan of $100,000 for a 30 year term, the rate is fixed at 6.0% with an APR of 6.39%
Fees, terms and requirements are subject to change without
notice.
|
Funding Fee |
At time of closing, 2.25% of loan amount to be paid by borrower
to the Department of Veteran Affairs* |
Application Fee |
A $350.00 non-refundable fee, made payable to Ocwen Loan Servicing,
LLC is due upon offer acceptance. |
Earnest Money Deposit |
Held by Broker or Escrow Company. |
Down Payment |
- 0% Down Payment -- if Owner Occupied
- 5% Down Payment -- if Investment/Non owner occupied
- 20% Down Payment - processing will be streamlined.
|
Closing Costs |
- Funding Fee - 2.25% of loan amount to VA
- Closing Fee To Ocwen Loan Servicing, LLC ($500.00 flat
fee)
- Prorated Property Taxes
- Prorated HOA Fees
- Optional Title Policy
- Recording Fees
- State Taxes (if applicable)
- 1 year pre-paid Hazard Insurance
- Title Company Closing Fee
- Title Company Document Preparation Fee
- Attorney Fee
- Seller Representation Fee
- Title Company Express Mail
- Title Company Wire Fee
- Title Company Deed Preparation Fee
- Other Costs may be incurred based upon state and local
requirements
|
Disclosures:
| 1. |
All properties are sold "As Is." |
| 2. |
The applicable interest rate for a Vendee Loan will be the
rate in effect at the time Ocwen accepts the Offer to Purchase
and Contract for Sale of behalf of VA. |
| 3. |
Interest Rates and Funding Fees are set by VA and are subject
to change without notice. |
| 4. |
VA Funding Fee (currently 2.25%) is required to be paid
at the time of Closing. Funding Fee is calculated on the total
loan amount
- A veteran who is receiving compensation (or who would
be entitled to receive compensation, but for the receipt
of retirement pay), or a surviving spouse whose spouse died
as a result of service-related disability is exempt from
the funding fee.
|
| 5. |
Returned checks are subject to the Returned Check Fee charged
by the bank, plus the amount of the check. |
| 6. |
If application is approved and applicant does not close, the
Earnest Money Deposit may be forfeited to VA. |
| 7. |
Vendee Financing may not be available on all properties. |
Vendee Loans - Frequently Asked Questions
Q: What is a Vendee Loan?
A: A Vendee Loan is Purchase Money Financing provided by the Department
of Veterans Affairs (VA) on the sale of VA Properties.
Q: Who Can Apply for a Vendee Loan?
A: Both Veterans and Non-Veterans can apply. Purchasers can be Owner-Occupants
or Investors.
Q: How do I apply for a Vendee Loan?
A: Have either your representative or yourself contact the Listing
Agent for detailed instructions on how to submit your loan package.
All forms and instructions are located in the Ocwen Vendee Financing
Section of this web site.
Q: What are the Benefits of a Vendee Loan?
1. Easy application process
2. Reduced closing time
3. Competitive fixed interest rates
4. Low down payment
5. No mortgage insurance required
6. No tax service fee
7. No appraisal fee
8. No flood certification fee
Q: How do I know if I will qualify for VA Vendee financing?
A: Non Veterans as well as Veterans are eligible to apply for VA
Vendee financing. Credit Scores are not used as a determining factor
in VA Vendee financing approval.
Q: What are the closing costs associated with VA Vendee
financing?
A: Closing costs are state specific. We do not require Title Insurance,
Appraisal, Survey, or Private Mortgage Insurance (PMI). See Program
Terms and Conditions for further details.
Q: How much Earnest money is required?
A: The minimum is $500.00, except in West Virginia and Virginia
where earnest money requirement are different. Please see your local
Real Estate Agent for earnest money requirements in your state.
Q: What title company will be used for closing and what
is the cost?
A: Title company selection is state specific. In seller selection
states, Ocwen chooses title company from a pre-approved list.
Q: Why do I have to pay a funding fee?
A: This fee is charged by the VA. Certain military applicants are
exempt from paying this fee. To see a list of exempt military see
the Terms and Conditions above.
Q: What is the interest rate for a VA Vendee loan?
A: The interest rate is set by the VA. To see the most current interest
rate, see the Terms and Conditions above
Q: Where can I find information on VA Vendee Underwriting?
A: You can view and print Pamphlet 26-7 - “Guaranty or Insurance
of Loans to Veterans ... GI Loan Programs” from the VA website.
The web address is http://www.warms.vba.va.gov/pam26_7.html.
CONTACT INFORMATION
Ocwen
Attn: VA Vendee Financing
P.O. Box 785060
Orlando, FL 32878
E-Mail: vendeeinfo@ocwen.com
Phone: 1-866-4VENDEE ((866) 483-6333)
8:30 a.m. - 5:30 p.m. EST
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