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VENDEE FINANCING PROVIDES PATH FOR MANY WITH CREDIT CHALLENGES

by John P. Allen

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.

While the fees, terms and requirements are subject to change without notice, at the time of this writing the borrower would pay 2.25% of loan amount to the Department of Veteran Affairs. The Application fee is just $350.00 which is non-refundable fee and made payable to Ocwen Financial Corporation.

Ocwen Financial Corporation handles the majority of VA Home Foreclosures for the lenders who have them on the books. They are a leading business process outsourcing provider to the financial services industry, specializing in loan servicing, mortgage fulfillment and receivables management services. In the USA, Ocwen is headquartered in West Palm Beach, Florida with offices in Arizona, California, Florida, Georgia, Illinois and New York.

Here are the features of getting Vendee Financing through OCWEN:

* 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. Returned checks are subject to the Returned Check Fee charged by the bank, plus the amount of the check.
5. If application is approved and applicant does not close, the Earnest Money Deposit may be forfeited to VA.
6. Vendee Financing may not be available on all properties.
7. 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.

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

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Official OCWEN Web Site – Forms

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Ocwen
Attn: VA Vendee Financing
P.O. Box 785060
Orlando, FL 32878
E-Mail: [email protected]
Phone: 1-866-4VENDEE ((866) 483-6333)
8:30 a.m. – 5:30 p.m. EST

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