What is a VA vendee loan?
A VA vendee loan provides financing for U.S. Department of Veteran Affairs real estate owned properties. VA REO (real estate owned) properties are homes that have been repossessed by the Department of Veteran Affairs, as a result of the borrower not making payments.PurposeVA vendee loans provide affordable loan options for American veterans and non-veterans alike. The VA simply wants to offer foreclosed properties to buyers who have the ability to make payments.BenefitsVA vendee loans have incredibly favorable terms. If you pay extra on your mortgage note every month, no prepayment penalties are assessed. The VA does not assess appraisal fees, which estimate the market value of the foreclosed home.QualifyWhile the VA traditionally works with banks to offer loans to veterans, non-veterans may purchase VA vendee properties as either a homeowner or an investor.RatesSince the Department of Veteran Affairs sets vendee mortgage rates at artificially low rates to help veterans afford their fi
