VA Vendee financing
VA Vendee financing: the VA’s own loan on VA-owned homes.
Vendee is a mortgage the Department of Veterans Affairs offers on the homes it has foreclosed and resells. You do not need to be a veteran. Low or zero down, no monthly mortgage insurance, and a veteran’s entitlement stays untouched. Here is how it works and who it fits.
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Anyone who qualifies on credit and income
No military service required. Owner-occupants and investors can both use it.
Zero for owner-occupants
Owner-occupants can put nothing down; investors put down about 5%. Closing costs can be financed in some cases.
2.25% funding fee, no PMI
A one-time VA funding fee of 2.25% of the loan, usually rolled in. No monthly mortgage insurance. Buyers with a 10% or higher VA disability rating may be exempt.
Only on VA-owned homes
Vendee only works on homes the VA is selling, and those are rare in Colorado. It is a tool for the right house, not a loan you shop with.
How it compares
Vendee vs. a VA loan vs. FHA, side by side.
VA Vendee
- Only on VA-owned (foreclosed) homes
- No military service required
- 0% down owner-occupant, about 5% investor
- 2.25% funding fee, no monthly PMI
- Does not use a veteran’s entitlement
VA loan
- Any home that meets VA property rules
- Eligible veterans and service members only
- 0% down, funding fee varies, no PMI
- Uses your entitlement
- Seller can pay closing costs
FHA
- Any home that passes the FHA appraisal
- Anyone who qualifies
- 3.5% down (HUD homes: $100 down program)
- Upfront and monthly mortgage insurance
- CHFA and metroDPA stack on top
Step by step
How to use Vendee on a VA foreclosure.
Find the VA home
Vendee only applies to homes the VA owns. We watch the MLS for VRM listings on the Front Range.
Apply through the servicer
Vendee loans are originated by the VA’s contracted servicer. Mike walks you through the application and the timing.
Write the offer
The offer notes Vendee financing. The VA weighs it by net proceeds, like any other offer.
Inspect
As-is sale. Your inspection, your cost, before you commit. No repairs by the VA.
Close
Funding fee rolled in, no PMI, keys in 30 to 45 days on a clean file.
Is Vendee the right loan for you?
Mike Oswald, VP of Mortgage Lending at Rate, NMLS 261003
Vendee is not always the cheapest option. Mike prices it against VA, FHA and conventional for the actual house, so you choose with numbers. Start the pre-approval or meet Mike. You may use any lender; Kenna receives nothing for the introduction.
Quick answers
Questions people ask about Vendee.
Do I need to be a veteran for VA Vendee financing?
No. Vendee is open to anyone who qualifies on credit, income and the property. It exists to help the VA sell the homes it owns.
What is the down payment on a Vendee loan?
Zero for owner-occupants and about 5% for investors, subject to the servicer’s current rules. Closing costs can sometimes be financed.
Is there mortgage insurance?
No monthly mortgage insurance. There is a one-time 2.25% funding fee, usually financed into the loan. Buyers with a VA disability rating of 10% or more may be exempt.
Does Vendee use a veteran’s entitlement?
No. A veteran can use Vendee on a VA-owned home and keep their VA entitlement for another purchase.
Can I use Vendee on a HUD home or any foreclosure?
No. Only on homes the VA itself owns and is selling. HUD homes use FHA, conventional, VA or cash instead.
Who services Vendee loans?
A private servicer under contract to the VA. The program’s details change from time to time, so confirm the current terms with the lender before you write an offer.
Free guide, PDF
$100 Down: The HUD Home Financing Guide
The $100 down rule, CHFA, HUD paying your closing costs: the stack that gets a buyer in for about $1,000. 14 pages, free.
Why you want it before you bid:
- Which listings qualify for $100 down and how to spot them (the IN and IE codes)
- What you still pay at closing, line by line, with a real example
- How $100 down stacks with CHFA, metroDPA and Good Neighbor Next Door
Find every home available, not just HUD homes
Advanced home search: every listing on the Colorado MLS, with the full filters, on kennarealestate.com.
Opens kennarealestate.com, the Kenna Real Estate Group’s full MLS search. HUD homes only? Use the tiles and the map on this site.
Ask us about Vendee financing
Tell us what you are looking at and how you plan to pay, and Mike will price Vendee against the alternatives for that house.
Call or text 303-955-4220
A live person answers. Not a robot, not a phone tree.
