REO News

Here is some information on the VA’s “Vendee Financing” program for purchases of its REO properties. This is not the same as a VA loan. These loans are available to veterans and non-veterans for the purchase of properties owned by the VA.

Please note that this is for informational purposes as we are not affiliated with the Veterans Administration.

• Borrower - Veteran and Non Veteran are eligible
• Terms from 15 to 30 years are available in 5 year increments. Fixed Rate.
• Interest Rate will be set by the Department Of Veterans Affairs.
• Funding Fee - At time of closing, 2.25% of loan amount to be paid by borrower to the Department of Veteran Affairs*
• Application Fee -A $350.00 non-refundable fee, made payable to Ocwen Loan Servicing, LLC is due upon offer acceptance.
• Earnest Money Deposit - Held by Broker or Escrow Company.
• Down Payment
  • 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. 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.
5. Returned checks are subject to the Returned Check Fee charged by the bank, plus the amount of the check.
6. If application is approved and applicant does not close, the Earnest Money Deposit may be forfeited to VA.
7. Vendee Financing may not be available on all properties.

Please note that this is for informational purposes as we are not affiliated with the Veterans Administration.