Financing VA Acquired Homes
As mentioned before, each property listed with the
VA are eligible for various types of financing. The types of financing
are:
VA Guaranteed Loans - This type of financing is
provided to eligible veterans by an approved lender and feature 100%
financing with $0 down, no prepayment penalty and no mortgage
insurance. Only properties with an "A" code are eligible for this type
of financing and the buyer must be an owner occupant.
FHA 203(b) Loans - This loan is the bread and
butter of FHA approved financing. Ranging from 15 or 30 year terms, FHA
offer owner occupant buyers the ability to buy a home with less than
ideal credit. Only properties with an "A" code are eligible for this
type of financing.
Conventional Loans - Generally referred to as a
Fannie Mae or Freddie Mac loan, this is a standard 30 or 15 year loan
that is not insured or guaranteed by the government. Only properties
coded "A" or "X" are eligible for this type of financing.
VA Vendee Financing - Financing provided by the VA
to purchase VA acquired homes. Eligible buyers are owner occupants
(both veterans and non-veterans). Buyers must meet basic underwriting
guidelines and the interest rate is fixed by the VA at the time of
purchase. All properties are eligible for this type of financing except
those coded "C".
All Cash - Buyers must provide adequate evidence of
sufficient cash to close on the transaction. VA will not accept any
type of financing on a property if the buyer is identified as a cash
buyer. All properties are eligible.
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