Veterans Administration

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Department Of Veterans Affairs

Forclosure Homes Vendee Program Colorado

By coloradodeed : A how to tutorial about colorado springs houses, colorado springs real estate, colorado springs realtors, Business with step by step guide from coloradodeed.

The Department of Veterans affairs' has many foreclosed properties that they must sale in the Colorado Springs, CO and Peyton CO area. I have marketed and sold many of their properties. One tool they use to help move these properties into the hands of new homeowners and investors is a special financing program called Vendee Financing.

Because of the unique position of the Department of Veterans Affairs' as both the lender and the home owner they can offer some advantageous terms to prospective homeowners. You do not have to be a Veteran to purchase a VA foreclosure using the Vendee program.

Owner occupied borrows do not have to put any money down and investors only have to put 5% down. They offer a 15 and a 30 year fixed rate mortgage. The current interest rate is 4.5% (as of 3/17/2011) The seller may contribute up to 3% of the sales price to help pay for closing costs and pre-paids.

There is no appraisal required. This is especially helpful with a lot of VA foreclosures I've seen in the Colorado Springs area that would not pass a typical VA appraisal due to poor condition. This program allows new homeowners to get some sweat equity and still use a zero down loan.

Typical VA loans require a home to be in move is ready condition. Vendee homes are often 'a little rough' and priced accordingly so it is a good opportunity to get the home at a bargain and fix it up a little. For investors this program can be wonderful, 5% down investors loans are rare, plus you can use the anticipated rent of the property to help qualify for the loan.

There is no limit to how many investment properties you can buy using this program as long as you still qualify.

In a lending world where money is hard to find this is a great program for investors in the Colorado Springs area where we have a lot of VA foreclosures for sale. Colorado Springs is a military town and many of the home purchased here are done so with VA loans, when those loans go bad we end up with a lot of VA Foreclosures.

Recently there have been some changes to the Vendee program that I wanted to share. The new terms are only 3% seller concessions, it was 6%. The loan origination fee is 2.25%, that is the same, unless you has a VA disability in which case the funding fee can be reduced or eliminated. The funding fee must now be paid by the borrower and cannot be paid with seller concessions or rolled into the loan.

This is a big change, before a good buyer's agent could use this program and show borrowers how a non-veteran can get into a home with no money out of pocket. Now the borrowers will have to bring at least the funding fee to closing. If you have questions or would like to see a list of Vendee homes in the Colorado Springs area please contact me.

Original article published on PubArticles.com

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