subject: High Converting Va Leads - 100% Financing Available [print this page] VA leads are in high demand for many reasonsVA leads are in high demand for many reasons. The first of which is that the licensing is more flexible than the FHA requirements. VA leads are qualified through the government and the program parameters allow financing up of to 100%. They are available for new purchases as well as refinancing opportunities. Generally, almost all active duty and honorably discharged service members are eligible for this type of loan. Guidelines for eligibility include, 181 days of active duty during peacetime, or 90 days during wartime, six years in the Reserves or National Guard and spouses of service members killed in the line of duty.
Qualified VA leads can be offered zero percent down, unlike conventional loans, which frequently require ten to twenty percent. Since the federal government guarantees the loan, very few who meet the qualification for the program are turned down, resulting in high conversion rates. This is also the reason that the interest rates for VA borrowers are up to one percent lower than for conventional loan. With VA loans, banks do not require private mortgage insurance so this will lower the monthly payments. Mortgage loan companies that specialize in these loans have streamlined the application process, so time is saved as well as money.
There are income requirements that the VA leads must meet to qualify for the program. The stability of established income amounts and continued employment must be verified. The two years of employment prior to the year the loan application is being submitted is usually the timeframe used. Enrollment at an accredited institution and seasonal employment is also considered. If the prospect is retired from active duty, the monthly dollar amount earned is verified from the source. Once the qualification of the applicant has been established, the funding fee is between 0-3.3% of the total loan amount.
The percentage depends on their current Veteran status. Even if this not their first home, or even their first VA loan, VA leads may still qualify for a program loan. If no longer on active duty, the applicant must provide a copy of the discharge papers. VA loans can also be used to pay off existing mortgages and other liens of record. In most cases, they will only be approved for up to 90% of the reasonable property value, as determined by an appraiser, plus closing costs and points. The VA niche for real estate is an interesting area that requires special attention. Much more than can be covered in this simple article.
