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VA Vendee Financing: A Reader Question

A reader asks, “There used to be a Vendee loan program that a Veteran or even Non-Vet to aquire property. What programs are currently available for Vets? Are there limits on how many properties a Vet investor can have to get loans? What vendors offer these loans?”

It’s true that the Department of Veterans Affairs has offered this program in the past. The VA official site features a fact sheet on the VA Vendee Financing program which includes the following information:

“• Any purchaser can apply for Vendee Financing. You do not have to be a Veteran.
• Vendee financing is available for non‐owner and owner occupied.
• Low Interest Rates
• $2500 origination fee includes: credit report, tax service, flood certificate and closing costs.

Vendee financing is a loan product offered to purchase VA Real Estate Owned Properties. Vendee financing is offered to both veterans and non‐veterans.”

However, the VA Vendee Financing program was suspended a while ago after it was decided to change the program and find a new company to service it. Unfortunately, Vendee Financing is, according to the information we could locate on the VA official site, still in limbo. The most recent information on VA Vendee Financing is dated from August 2012, and states:

“As the Department of Veterans Affairs (VA) transitions the REO Portfolio to Vendor Resource Management (VRM) vendee financing will not be available. Please check back for updates to the status of vendee financing.”

Borrowers who are interested in the status of VA Vendee Financing are encouraged to contact the VA directly for more information at 1-800 827-1000.

Do you have questions about VA home loans? Ask us in the comments section.

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Bruce Reichstein

About Bruce Reichstein

Experienced VA Loan Mortgage Banker specializing in Military Mortgage lending to US Veterans for over 25 years. (www.VALoans.com). Expert in VA Jumbo Home Loans greater than $417,000 which go up to the maximum 2014 county limits as defined by the Veteran's Administration. Thousands of loans to High Ranking Military Officers, DOD Employees, Airline Pilots and many other Military Heroes who qualify. Welcome opportunities pertaining to online military ventures.

6 Responses to VA Vendee Financing: A Reader Question

  1. Lon Miller says:

    I have used the VA loan on 2 houses that have been paid off. Is the limit by VA 2 loans, or will they allow more if the loans have been paid?
    Thanks.

    • Joe Wallace says:

      VA loans do offer a ONE-TIME entitlement restoration where the borrower can purchase and pay off a home with a VA loan but not sell it. If you have already purchased and paid off a home with a VA mortgage, but did not sell that property when you got entitlement restored for the next home purchase, you cannot do so a third time. Hope this helps!

  2. Joe B says:

    is there any update as to vendee loans being restored?

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