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Bruce Lynn, Real Estate Pro in Coppell, TX

VA Vendee Loans on VA Foreclosures

Asked by Bruce Lynn, Coppell, TX Mon Sep 22, 2008

Does anyone know if someone with a current VA loan on their primary residence can get a second VA Vendee loan on a 2nd home foreclosure purchase?

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Bruce, I am a real estate broker in Jacksonville NC (Camp Lejeune). There is a difference in a VA Loan, and a VA Vendee loan. A VA loan, is one in which a member of the Armed Services (past or present) can use as one of the benefits of having served in the military. The VA loan is not obtained thru the government;it is BACKED by the government. Sort of like, the Veteran's Admin, "co-signs" for the borrower. A VA loan can be obtained thru lenders such as Countrywide, etc.

The VA Vendee Loan program is for properties that have gone into foreclosure, and are actually loans given by the Veteran's Admin. The administration still has to approve the loan based on the usual criteria such as credit history, income, and debt. Anyone can apply for these loans, whether military or civilian. There is a down payment requirement with vendee financing. You can get more info about these loans at http://www.ocwen.com website, which is the service provider for VA foreclosures.

Good Luck. If I can help let me know. jmorton17@ec.rr.com
Web Reference: http://www.carolina4you.com
1 vote Thank Flag Link Wed Sep 24, 2008
Va loan and Vendee loan are different.. I deal with investors - anyone can get a vendee loan if they qualify.. and they can get as many as they qualify for.. the do not have to be a vet.. they have to have 5% DOWN AND THEY CAN GET BACK 3% - this is only for foreclosed VA houses.. the trick seems to be that Bank of America did a very bad job at this.. and so they are being replaced by Chase - so it seems.. not much information on that.. what I do know is you can't go to your normal mortgage person at the bank.. it is a separate group- or was a separate group at BofA... so now we are just waiting to see where and how Chase handles it..
0 votes Thank Flag Link Mon Aug 13, 2012
does anyone know who is giving vendee loans now that Bank of America is out? l heard Chase.. but who where?
0 votes Thank Flag Link Mon Aug 13, 2012
There is no limit on the number of VA Vendee financed homes that a person can have. As long as they qualify through VA Vendee, there is not a limit. For example, an investor...they can have as many as they can qualify to buy.
0 votes Thank Flag Link Tue Mar 16, 2010
Jan is correct. Vendee loans, though covered by the VA, is not a VA loan.

There's no limit to how many Vendee loans you can have and it does not effect a veteran's entitlement. You don't even have to be a veteran to get one.

The funding fee is waived if the purchaser is a disabled vet.
0 votes Thank Flag Link Mon Dec 14, 2009
Jan

As far as I know the same rules apply regardless of VA or Vendee. Please correct me if I am wrong though as I have not seen this in writing only been told verbally.

Steve Ferguson
0 votes Thank Flag Link Wed Sep 24, 2008
i believe that you can only have 1 VA loan at one time and it is for personal residence not for investment properties.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Wed Sep 24, 2008
Margaret

The rules change daily it seems. You are correct in what you say. There is a certain dollar amount that you could borrow up to and if you could get two properties for that amount then great. Technically this rule still exists but I have yet to see an underwriter allow it. That seems to be the norm today, underwriters making their own guidelines vs going with what is allowed. Hope this answers your questions.
0 votes Thank Flag Link Tue Sep 23, 2008
Have the rules changes, I was told there was a total you could borrow and if the one loan was for a small amount then you could have another - but yet that was 100 years ago LOL>
Margaret
0 votes Thank Flag Link Tue Sep 23, 2008
Based on current VA guidelines you can only have one VA loan at a time. If the buyer decided to refinance his existing home into some other program besides VA then you would be fine. The down side of this is he/she will have closing costs with the refi and the VA funding fee will be higher on the new purchase.

On a side note you can have more than one FHA loan as long as the propeties are greater than 50 miles apart.

Steve Ferguson
0 votes Thank Flag Link Tue Sep 23, 2008
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