Great news for individuals looking to buy investment properties with as little as 5% down. Vendee financing is the financing arm of VA acquired properties that typically may require some work. The new 4% interest rate goes in effect today (August26,2010). The loan is for 30 years at this fixed rate. Owner occupied properties is no money down ( you don’t have to be current or prior military), and 5% for investors or non owner occupied.
This interest rate is not subject to market changes. Of course there are restrictions in addition to the limited VA owned properties. First of all, the property must be financed with Bank of America Home Loans,N.A. Mortgage insurance is not required, no prepayment penalty, or title insurance( but recommended). These properties also qualify for the VA to pay up to 6% of the purchaser’s closing costs and if the purchaser needs additional closing costs, 2% of the sales price can be financed. As most lending institutions are reducing or restricting the number of mortages an individual may have, this program does not. Investors can have as many properties that they can financially carry.
Great opportunity to acquire investment properties while the market is adjusting. For a list of VA properties in your area, go to http:va.equator.com
