VA Home Loans
A VA home loan is a mortgage backed by the Department of Veterans Affairs (VA). Therefore, a VA loan is only eligible to service members and veterans. You can buy a home with little or no down payment, or refinance an existing home to get cash out or lower your monthly payment.
Benefits of VA Home Loans
Metropolitan Mortgage can offer service members, veterans, and eligible surviving spouses favorable loan terms. A VA home loan is a great benefit to military personnel during and after their service.
VA home loans offer the following advantages:
- Higher loan value
- No private mortgage insurance
- Limit on closing costs
- Owner Occupied residences only
- Option for seller to pay closing costs
- No penalty fee for early payoffs
- Possible VA assistance if you have difficulty with payments
Minimum Down Payment
There is no minimum down payment for a VA home loan. However, you can choose to make a down payment and it may come from a gift or any documented asset.
Loan Limits of VA Financing
The maximum Conforming VA loan limit is $424,100.
The maximum Jumbo VA loan limit is $700,000. However, the loan amount is subject to the following criteria:
With a VA Jumbo Loan you can apply for a loan amount up to $700,000 and will only need a down payment of 25% on the difference between $424,100 and the purchase price of the home.
For example, you want to purchase a home that costs $500,000. You would be required to pay 25% down on the amount over $424,100.
$500,000 – $424,100 = $75,900. Then $75,900 x 25% = $18,975. This would be your down payment. This payment is still considerably lower than the 10% traditionally required for jumbo loans.
Cash-Out Refinance Loans
A cash-out refinance helps you handle big-ticket items – college, health expenses or debt, for example. Effectively, you pay off the remaining balance and take out a new loan for the appraised value of the house. Much of the difference can be taken as cash-out.
Interest Rate Reduction Refinance Loan (IRRRL)
An Interest Rate Reduction Refinance Loan (IRRRL) helps service members refinance at a lower interest rate. Refinancing can help lower your monthly payment, change your term or turn an ARM into a fixed rate. Other advantages include:
- There is no appraisal or credit underwriting
- No Income and/or asset verification
- No out-of-pocket expenses
- Rolling all costs into the new loan
VA Eligibility Requirements
Qualified service members are those that have received a discharge other than dishonorable from an eligible branch of the service, including the U.S. Army, Navy, Air Force, Marines, Coast Guard, Nat. Guard and Reserve and U.S. Military academies. They also meet the service requirements charted below.
You may be eligible for a VA Home Loan if you meet one or more of the following conditions:
- Served 90 consecutive days of active service during wartime, OR
- Served 181 days of active service during peacetime, OR
- You have more than 6 years of service in the National Guard or Reserves, OR
- You are the spouse of a service member who has died in the line of duty or as a result of a service-related disability.
We offer several VA Home Loan options.
VA Fixed Rate Home Loans
Metropolitan Mortgage offers conventional loans as 30-year and 15-year fixed rate options. Both options offer the same interest rate stability, but the shorter the term the higher the monthly payments, giving you a faster way to build up home equity. You can use this higher equity as a down payment when you move to your next home.
VA Adjustable-Rate Mortgages
The flexibility of an Adjustable Rate Mortgage (ARM) can be appealing to current military service members. For example, members expecting to move in the next few years. Therefore, these type of loans are best for shorter terms of ownership.
Current Mortgage Rates
|30 Year Fixed|
|15 Year Fixed|
|5 Year ARM|
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Have Questions? Contact Us online or call 913.642.8300.
**Metropolitan Mortgage Corporation is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.