The Veterans Administration (VA) was established for the purpose of providing men and women who have served in the armed forces with various benefits. They provide many federal benefits such as health care, burial benefits, financial benefits and home loan assistance.

They have been helping veterans purchase homes since 1944. It is available to veterans, active duty personnel, and some members of the National Guard and the Army Reserve.

The VA provides lending institutions with guarantees that loans made to veterans will be re-paid in full in the event of a default. These loans are available to veterans for primary residence dwellings. It is the law that a borrower live in in the property purchased.

A benefit of a VA backed loan is that no down payment is required. Statistics tell us that these loans are more problematic than regular loans. A veteran can have declared bankruptcy at least two years ago and still get a loan without problems.

Benefits of a VA loan:

No down payment required.

Competitive interest rates are offered

VA fees and closing costs can be financed.

VA loans can be assumed.

No mortgage insurance premiums.

No mortgage pre-payment penalties.

Assistance is available to those in default.

There is not a lot of reading material available concerning VA loans so opportunities are there for the taking.

The VA has awarded a contact to Ocwen Federal Bank to manage all VA foreclosures. This company is located in Orlando, Florida and offers those properties through the us of real estate office across the country. There is a web site, ocwen.com which has a list of national foreclosures. There is a breakdown within the state listing for cities.

You can find a list of agents handling those properties on the web site along with important information concerning the property. Contact the indicated agent and arrange a visit to the property.

As the VA has guaranteed the loan when it is foreclosed and taken back it winds up on the VA list. Due to the fact that the original buyer had very little invested in the property the VA often finds itself selling for a discounted price. Houses can often be bought for 70-80% off the asking price.

Due to the previous homeowners financial condition the condition may vary widely. Have any property you are interested in examined by a licensed Home Inspector.

Ocwen Federal Bank has a special financing program available called VA Vendee Financing Program and is available both to veterans and non veterans. The most important fact is that you don’t have to occupy the property you are buying.

Benefits of the Vendee Financing Program:

No down payment for owner occupants.

A low down payment of 5% for non occupants.

Competitive interest rates.

No mortgage insurance required.

No appraisal fees.

No flood certification.

This is a largely untapped area for new investors. Do your homework and seek the advice of professionals.

By: Ray Caran