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VA Loans in Kansas City

VA loans in Kansas City are backed by the Department of Veterans Affairs (VA). Therefore, VA loans are only eligible to military personnel members and Veterans. You can buy real estate with a low-down payment or refinance an existing VA loan to get cash out or lower your monthly payment.

The mortgage rates for a 30-year fixed-rate and 15-year fixed-rate are very low and are available on a first mortgage.

There are three loan VA Loan products: purchase loans, interest rate reduction refinance loans (or IRRRL, also referred to as VA loans – streamline refinance loan), and cash-out refinance loans.

There are many benefits to VA loans, but one of the biggest benefits is that no down payment is required for a home purchase of the real estate. This can make homeownership a reality for active military or veterans who might otherwise not be able to afford it.

Get Started on Your Mortgage Pre-approval today!

What are the Benefits of a VA Loan?

Metropolitan Mortgage Corporation is a Kansas City Mortgage Lender offering VA home loans. We offer military personnel members, Veterans, and eligible surviving spouses favorable loan terms. The VA program offers some of the most attractive loan benefits available.

Perhaps the two biggest benefits that make VA loans more affordable than other financing are no money down, and no private mortgage insurance (PMI) requirement. VA loans offer a great benefit to Veterans and military personnel during their military service.

Advantages of VA loans:

  • Negotiable and competitive interest rates.
  • Ability to finance the funding fee (plus reduced funding fees with a 5 percent down and the exemption for veterans receiving VA compensation).
  • VA limits the amount you can be charged for closing costs.
  • Closing costs are comparable with other financing types (and maybe lower).
  • The seller may pay closing costs.
  • A minimum credit score of 640 or higher
  • No private mortgage insurance premiums are required.
  • An assumable mortgage.
  • Right to prepay your loan without penalty.
  • For homes inspected by VA during construction, a warranty from builder and assistance from VA to obtain the cooperation of builder.
  • VA assistance to a Veteran borrower in default due to temporary financial difficulty.

How do I apply for a VA Loan?

You can apply online for VA loans and receive your mortgage pre-approval within one business day. Get started on your Metropolitan Mortgage application today:

Apply Now >

Mortgage Rates for VA Loans

Fixed-Rate Loans – VA loans are available in a Fixed-rate mortgage, 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 Veterans a faster way to build up home equity.

VA home loan calculator

Adjustable-Rate Loans – The flexibility of an Adjustable Rate Mortgage (ARM) can be appealing to current military service members or Veterans. For example, members are expecting to move in the next few years. Therefore, this type of variable rate loan is best for shorter terms of homeownership.

VA Mortgage Rates

VA Loan Requirements:

VA Loans in Kansas City

What is the Minimum Down Payment for VA Loans?

A VA-backed purchase loan often offers no money down as long as the sales price isn’t higher than the home’s appraised value. A VA appraiser determines the home value at the time of appraisal.

2022 VA Loan limits

The maximum limit for VA loans (Kansas and Missouri) purchase and refinance loans for 2022 is:

  • $647,200 for a one-family property
  • $828,700 for a two-family property
  • $1,001,650 for a three-family property
  • $1,244,850 for a four-family property

In general, the maximum Conforming mortgage amount in the Kansas City metro area is $647,200. However, there are VA loans for Jumbo financing to $1,000,000. However, these home loans are subject to the following criteria:

With a VA Jumbo Loan, a Veteran home buyer can apply for a loan amount up to $1,000,000 and will only need 25% down on the difference between $647,200 and the purchase price of the home.

For example, Veteran home buyers looking to purchase a home that costs $750,000. Veterans would need to 25% of the down on the amount over $647,200.

$750,000 – $647,200 = $125,000. Then $125,000 x 25% = $25,700. This would be the amount you would need to put down. This payment is still considerably lower than the 10% traditionally required for jumbo loans.

Minimum Credit Score

A VA loan is a great choice for eligible borrowers with a credit score of 640 or higher. Contact a Kansas City Loan Officer to find out which VA home loans are best for you.

VA Mortgage Refinance

VA Cash-Out – VA loans offer cash-out refinance help. Veterans handle big-ticket items – college, health expenses, or debt, for example. Effectively, you pay off the remaining balance and take out a new VA loan for the appraised value of the home. Much of the difference can be taken as cash-out.

Interest Rate Reduction Refinance Loan (IRRRL) – An Interest Rate Reduction Refinance Loan (IRRRL) helps military personnel members or Veterans refinance their Kansas City homes at a lower interest rate.

Refinancing can help lower your monthly mortgage payment, change your home loan term, or turn an ARM into a fixed rate.

Other advantages of VA loans include:

  • There is no appraisal or credit underwriting
  • No Income and/or asset verification
  • No out-of-pocket expenses
  • Roll closing costs into the mortgage amount

Service Members and VA Interest Rate Reduction Loans (IRRL)

Who is Eligible for a VA Loan?

Qualified military personnel members or Veterans are those that have received a discharge other than dishonorable from an eligible branch of military personnel, including the U.S. Army, Navy, Air Force, Marines, Coast Guard, Nat. Guard and Reserve and U.S. Military academies.

They also meet the military personnel requirements charted below. Kansas City Veterans are eligible for VA loans if they meet one or more of the following conditions:

  • Served 90 consecutive days of active military personnel during wartime, OR
  • Served 181 days of active military personnel during peacetime, OR
  • You have more than 6 years of military personnel in the National Guard or Reserves, OR
  • You are the spouse of a military personnel member who has died in the line of duty or as a result of a military personnel-related disability.

Check Eligibility Here

VA Loan Funding Fee Table

Effective January 1, 2020, based on Public Law 116-23

Review the VA funding fee rate charts below to determine the amount you’ll have to pay. The amount needed down and funding fee amounts are expressed as a percentage of the total loan amount.

For example: Let’s say you’re using a VA loan for the first time, and you’re buying a home for $200,000 with $10,000 down (5% of the $200,000 loan). You’ll pay a funding fee of $3,135, or 1.65% of the $190,000 loan amount.

The funding fee applies only to the loan amount, not the purchase price of the Kansas City home.

10 Tips to get the most out of your VA Loan

VA-backed purchase and construction loans

Rates for Veterans, active-duty service members, and National Guard and Reserve members

If your down is… Your VA loan fee will be…
First use Less than 5% 2.3%
5% or more 1.65%
10% or more 1.4%
After first use Less than 5% 3.6%
5% or more 1.65%
10% or more 1.4%

Note: If you only used a VA-backed or VA direct home loan to purchase a manufactured home in the past, you’ll still pay the first-time funding fee.

VA-backed cash-out refinancing loans

Rates for Veterans, active-duty service members, and National Guard and Reserve members

First use After first use
2.3% 3.6%

Note: The VA funding fee rates for refinancing loans don’t change based on your down payment amount. If you used a VA-backed or VA direct home loan to purchase a manufactured home, you only need to pay the first-time use funding fee.

Native American Direct Loan (NADL)

Type of use VA fee
Purchase 1.25%
Refinance 0.5%

Note: The VA fee for this loan doesn’t change based on the amount down or whether you’ve used the VA loan program in the past.

Other VA loan types

Loan type VA fee
Interest Rate Reduction Refinancing Loans (IRRRLs) 0.5%
Manufactured home loans (not permanently affixed) 1%
Loan assumptions 0.5%
Vendee loan, for purchasing VA-acquired property 2.25%

Note: The VA fee rates for these loans don’t change based on the amount down or whether you’ve used VA loans in the past.

**Metropolitan Mortgage Corporation is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government and is a equal housing lender.

Tips for Getting Your VA Loan Approved

Explore all the Loan Options that are available

Contact a Loan Officer to learn more about VA Loans. Call our Kansas City and Overland Park office at 913-642-8300 or apply online.

Find us locally

Find us in Overland Park

7381 W 133rd St #200,
Overland Park, KS 66213

Hours
Monday Friday
8:30am – 5:30pm

Find us in Kansas city

7280 NW 87th Terrace Suite 200
Kansas City, MO 64153

Hours
Monday Friday
9:00am – 5:00pm

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