Veterans Administration (VA) foreclosed homes were part of a world I knew nothing about. At least while living in the Phoenix, Arizona metro area during the early 70’s. We lived in an apartment back then and were desperately trying to make ends meet.

One day I answered an ad placed by a real estate broker who specialized in managing, repairing, and selling homes foreclosed on by the Veterans Administration Real Estate Owned (REO) department. It was a fortuitous meeting since the economy was starting a slow downturn. Being a fledgling carpenter, I was having trouble finding work.

Through him, I learned that I could bid on the repairs to homes taken back by the VA and I did not need to be a licensed contractor. One series of bids allowed me to receive 4 homes all at once. One of those homes caught my attention because I wanted it for myself and my family to live in.

After passing a very minimal application procedure, I was allowed to use the repair funds as a down payment for the house and purchase it for $20,000. The complete monthly payment, including Principal, Interest, Taxes, and Insurance (PITI) was around $200 a month. That was our first home. It also became my first real estate investment as we later rented it out, then sold it to the occupant after moving to California.

Buying A VA Repo Today

Any qualified buyer can purchase a VA REO property. In other words, they are not properties offered to veterans only. An option to finance them is through VA Vendee financing, a VA-backed loan program only available for buyers of VA REO properties. So, what does all this info mean to someone like you?

A VA REO property is one taken back as a foreclosure by the VA and then fixed up to meet minimum requirements before being put on the market for auction. Those requirements include:

  • A roof that does not need major repairs or have leaks
  • An AC system, hot water tank, and built-in appliances that are in good working order
  • Broken windows and doors repaired or replaced
  • Flooring in respectable shape

Most regular foreclosures will not qualify. The VA brings their own recovered properties into compliance with said Vendee program. It is designed to make it much easier for buyers to qualify for a loan.

The Vendee Program Features

If the buyer plans to occupy the VA REO home as a primary residence, the following benefits apply:

  • Zero money down within conforming loan limits
  • No private mortgage insurance
  • No pre-payment penalties
  • VA Funding Fee from 0% to 3.3%
  • VA loans are made by approved lenders
  • Loans are assumable
  • Up to all closing costs may be paid by seller plus 4% concessions

No minimum credit score is published in VA or Vendee guidelines; however, borrowers must prove to be a satisfactory credit risk as determined by the VA-approved lender.

Whom Do You Deal With

The VA doesn’t lend money directly, it works with participating lenders, and it also does not sell its REO homes directly. For that, the government contracts an independent company for the task.

Formerly, it “had” contracted a company called BAC Home Loan Servicing, which was responsible for listing and selling VA REO homes. BAC Home Loans Servicing operated as a subsidiary of Bank of America, but not any more. They got caught up in the prime lending mess whereby many foreclosures were handled improperly without following the proper judicial process.

Now, when the Department of Veterans Affairs (VA) acquires properties as a result of foreclosures on VA guaranteed loans, a new agency is involved. These acquired properties are marketed through a property management services contract with Ocwen Federal Bank FSB located in West Palm Beach, Florida.

The properties are listed by local listing agents through local Multiple Listing Services (MLS). A list of properties for sale may also be obtained from Ocwen’s website at If you are interested in buying a VA-acquired property when it is listed for sale by Ocwen Federal Bank FSB, please contact a local real estate broker of your choice to see the property.

The irony of this recent development is that Ocwen was the management firm in charge of my home prior to my purchasing it through an online auction. While researching this article, I went to their website, clicked on the Ocwen Residential REO tab, and voila! It took me straight to the HUBZU website, the same combined auction house, realtor, and escrow agent that handled the purchase process of my current home a few years earlier. Amazing!

Finding Homes And Moving Forward

The Ocwen website platform allowed me to view many foreclosed properties in Florida. Buyers can locate a VA REO home through them based on property location, price range and other criteria. I did not go into details as to which ones were specifically VA repos or not. That would take additional research.

In most cases, a VA foreclosed property will first be offered through auction by the county sheriff to the highest bidder. If the home fails to sell to a third party at auction, then the home may be acquired by the lender and then made available through typical real estate listings like the local MLS.

Due to the VA owner-occupancy requirement, all homes financed with the VA guarantee must be in safe living condition. If repairs are needed before the home can pass VA appraisal/inspection, often the buyer will pay for them and incur the risk. The VA will not provide its guarantee on a home that does not appraise for its sales price.

The Benefits of VA Foreclosures

VA homes will usually sell to the public at 30 to 50 percent off their market value. Keep in mind that a VA home may be in better condition than other foreclosed properties. As stated earlier, this is because the VA takes an active part in preparing their foreclosed properties for sale.

You are buying a home that is both heavily discounted to the market, but is in basic livable condition at the very least. You can also be in the position of finding the home yourself and sizing up your ability to afford and qualify for the Vendee Program upfront.

Things To Consider

Finding a real estate agent qualified to deal with VA repos and the Vendee Financing Program, may be difficult, especially if your sights are on a rural location. If you are working with one currently who does not understand the requirements of program, you can always have them contact the VA.

For more information on the VA Vendee Loan Program, contact VRM Mortgage Services at 855-843-8334 or To view VA REO properties available for Vendee financing, visit

If you already went through a VA foreclosure and lost your house, you can still qualify. But you would have to clear up any monies owed to the government. This would include any government agency.

If you submit a bid on a VA REO property, it will be on one that did not sell to an investor or all cash buyer at auction. Still, your bid offer may have competition from other interested parties. If your bid is exceeded by a competitor and accepted, they still have to complete the qualification process if they are in need of a loan to seal the deal. Your bid can be a back up to the winning bid if so directed by your realtor.

When buying any government property, you must have a realtor. Even if you do all the home-finding, escrow management, and legwork yourself. The seller will pay the commission.

In Conclusion

The article deals with another way to purchase and finance a home by the budget minder home buyer. You can obtain a nice home without all the headaches of basic renovations and home equity loans.

You just need to have a good deal of fortitude and the ability to handle stress when issues arise. Not everyone can do this and many homeowner wannabes give up, especially when the time frame drags out seemingly forever.

However, if you have gotten this far with the article to show yourself you are still interested, don’t give up. There are different ways to buy a home on a budget and this is one of them. You can make it happen if you really want to put forth the effort.


I am requesting that my readers click on the links provided and download a sample read of each book and give a review on Amazon. You will have free access to the first four chapters of each book. My hope is that you will like the story lines enough to obtain either an eBook version or a paperback copy that you can put on your bookshelf as a masterpiece when you are done. FATE STALKS A HERO I: RESURGENCE, FATE STALKS A HERO II:THE FIJI FULCRUM, and THE SAGA OF HERACLES PENOIT. I will be giving excerpts on these works in upcoming blogs to familiarize you the reader with exciting details about the contents of each one. Thank you!





  • It’s going to be finish of mine day, however before end I
    am reading this impressive paragraph to increase my knowledge.

  • My spouse and I stumbled over here different page and thought I
    may as well check things out. I like what I see so i am just following you.

    Look forward to finding out about your web page for a second time.

  • Alex Kime Producer

    Way cool! Some very valid points! I appreciate you penning this write-up plus the rest of the website is extremely good.|

  • Hi! I’ve been reading your site for a while now and finally got the courage to go ahead and give you a shout out from Lubbock Tx! Just wanted to tell you keep up the fantastic job!|

  • Woah! I’m really enjoying the template/theme of this website. It’s simple, yet effective. A lot of times it’s challenging to get that “perfect balance” between superb usability and appearance. I must say that you’ve done a amazing job with this. Also, the blog loads super quick for me on Chrome. Exceptional Blog!|

  • Greetings from Carolina! I’m bored to tears at work so I decided to browse your blog on my iphone during lunch break. I really like the info you present here and can’t wait to take a look when I get home. I’m amazed at how fast your blog loaded on my mobile .. I’m not even using WIFI, just 3G .. Anyhow, great blog!|

  • Does your website have a contact page? I’m having problems locating it but, I’d like to shoot you an email. I’ve got some ideas for your blog you might be interested in hearing. Either way, great blog and I look forward to seeing it improve over time.|

  • Are you searching for escort girls in Tel Aviv ?18escortgirls can cause you to Want to invest
    quality young escort girls in your home or hotel? Trying to find Russian escorts,
    Ethiopian escorts or VIP escorts? Trying to find
    escort services in Tel Aviv with the fantastic supply of 18escortgirls Index can fulfill your
    entire fantasies discreetly.

  • What i don’t understood is in faact how you are now not really much more smartly-liked than you may be now.
    You are very intelligent. You recognize therefore considerably on the subject of thjis matter, made me in my opinuon imagine it from numerous various angles.
    Its like women and men don’t seem to be fascinated except it’s something to do
    with Lady gaga! Your personal stuffs outstanding.
    At alll times care for it up!

  • Wow, this article is good, my sister is analyzing these kinds of things, so I am going to let know her.|

  • Excellent goods from you, man. I’ve understand your stuff previous to and you’re just too great.
    I actually like what you have acquired here, certainly like what you are saying and the way in which you say it.
    You make it enjoyable and you still care for to keep it smart.
    I can not wait to read much more from you. This is actually a great site.

  • After checking out a few of the blog articles on your website, I honestly appreciate your way of blogging.

    I bookmarked it to my bookmark website list and will
    be checking back in the near future. Please visit my website as well and let me know your

  • Very nice post. I just stumbled upon your weblog and
    wanted to say that I’ve truly enjoyed browsing your blog posts.
    In any case I will be subscribing to your rss
    feed and I hope you write again very soon!

  • Hi there to all, the contents present at this web site are in fact remarkable for people knowledge, well, keep up the nice
    work fellows.

  • I’ve been surfing online more than three hours today, yet I never found any interesting article like yours. It’s pretty worth enough for me. Personally, if all web owners and bloggers made good content as you did, the web will be a lot more useful than ever before.|

  • I will immediately grasp your rss feed as I can not in finding your email subscription link or e-newsletter service. Do you have any? Please allow me understand so that I may subscribe. Thanks.|

  • I was able to find good advice from your blog posts.|

  • I’ve learn several excellent stuff here. Definitely worth bookmarking for revisiting. I wonder how much attempt you set to make the sort of wonderful informative web site.|

  • Wonderful goods from you, man. I have understand your stuff previous to and you are just
    ttoo magnificent. I really like what you’ve
    acquired here, really like what you’re saying and the way in which you say
    it. You make it enjoyable and you still care foor to keep
    iit sensible. I can’t wait to read far more from you. Thiis
    is reaally a terrific web site.

  • Wow, this post is good, my sister is analyzing these kinds of things, so I am going to convey her.|

  • I read this paragraph fully concerning the comparison of most
    recent and preceding technologies, it’s remarkable article.

  • After exploring a few of the blog posts on your web page, I seriously
    like your technique of blogging. I saved as a favorite it to
    my bookmark site list and will be checking back
    soon. Please visit my website too and tell me what you think.

  • Hi thеrе! І could have sworn I’ve ƅeen tto thіs blog ƅefore ƅut after reasding tһrough
    somе of the post I realized іt’s new to me.
    Ꭺnyways, I’m definitely delighted I found iit and
    I’ll be bookmarking аnd checking back օften!

  • Attractive component to content. I simply stumbled upon your weblog and in accession capital to
    claim that I acquire in fact loved account
    your blog posts. Anyway I will be subscribing to
    your feeds or even I achievement you access consistently

  • After exploring a few of the blog articles on your website, I honestly appreciate
    your way of writing a blog. I book-marked it to my bookmark webpage list and will be checking
    back in the near future. Take a look at my website too and let me know your opinion.

Leave a Reply

Your email address will not be published. Required fields are marked *