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VA Loan in Kansas City

A VA loan in Kansas City is backed by the Department of Veterans Affairs (VA). Therefore, VA home loans are only eligible to military personnel members and Veterans. You can buy real estate with a low-down payment or refinance an existing home 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 a VA home loan – streamline refinance loan), and cash-out refinance loans. There are many benefits to VA offers, but one of the biggest benefits is that no down payment is required for a home purchase of real estate. This can make home ownership 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 VA?

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 and flexible home loan benefits available. Perhaps the two biggest benefits that make these home loans more affordable than a typical loan are that the home buyers typically do not need to make a down payment, and there is no private mortgage insurance (PMI) requirement. VA is a great benefit to Veterans and military personnel during their military service.

Advantages of VA Financing:

  • Negotiable and competitive interest rates.
  • Ability to finance the VA funding fee (plus reduced funding fees with a down payment of at least 5 percent and 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.
  • 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 a VA home loan 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 mortgages 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. Veterans can use this higher equity as a down payment for their next home.

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 expecting to move in the next few years. Therefore, this type of variable rate home loan is best for shorter terms of homeownership.

VA Mortgage Rates

VA Home Loan Requirements:

VA Loan in Kansas City

What is the Minimum Down Payment for a VA Loan?

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

2022 Maximum VA Loan Amount

The maximum VA loan limit for Kansas City (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 Jumbo loans 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 home loan amount up to $1,000,000 and will only need a down payment of 25% 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 be required to pay 25% down on the amount over $647,200.

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

VA Mortgage Refinance

VA Cash Out – VA 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 home 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 your home 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 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 Home 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.

Veterans may be eligible for VA financing if you 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 Home 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. Down payment and VA funding fee amounts are expressed as a percentage of total loan amount.

For example: Let’s say you’re using a VA-backed loan for the first time, and you’re buying a $200,000 home and paying a down payment of $10,000 (5% of the $200,000 loan). You’ll pay a VA 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 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 payment is… Your VA funding 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 funding fee
Purchase 1.25%
Refinance 0.5%

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

Other VA home loan types

Loan type VA funding 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 funding fee rates for these loans don’t change based on your down payment amount or whether you’ve used the VA home loan program 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.

Tips for Getting Your VA Loan Approved

Explore all the Loan Options that are available

Contact a Loan Officer for a VA Loan in Kansas City and Overland Park 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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