VA Home Purchase Loan

Purchasing a new home?

National Bank Of Kansas City is a full-service mortgage company offering more than VA home loans. National Bank Of Kansas City also offers FHA and conventional loans in all 50 states. Plus our home loan funding process is quick and simple. We take pride in meeting our customer's expectations throughout the entire home loan cycle.

What are the benefits of a VA loan vs. a conventional loan?

With a VA loan, you can get 100% financing without mortgage insurance. This alone can save hundreds of dollars a month. It's possible to get approved with flawed credit. If rates improve after you close on your VA loan, you are always eligible for a streamline refinance – conventional loans do not offer a similar option.

Is the VA loan the best way for 100% financing?

It's quickly becoming the only way to finance 100% of the property as conventional loans have backed off considerably with high financing levels! The next best is the FHA loan program – which requires a 3.5%* down payment.

Are conventional mortgage rates lower than VA rates?

Which rates are lower on any given day will vary. VA rates are comparable to conventional rates where the borrower has great credit and plenty of cash for a down payment. The VA loan is the only way to get 100% financing these days.

If I have my certificate of eligibility, does that mean I am guaranteed to get a VA loan?

You are guaranteed for a VA mortgage only after qualification is complete. The lender has to make sure you have the ability to support the mortgage payment for the home. The borrower must still qualify based on their income, assets, and their credit history.

What is the maximum VA loan amount?

The current maximum VA loan amount is $417,000. Even if you are eligible for a VA loan, you still have to qualify for the requested loan amount. This means that you may not be approved for the entire maximum loan amount. If you want to purchase a home that is more than $417,000, you would need to bring additional money in the form of a down payment.

Do I have to pay my closing costs out of pocket?

This will depend on how your sales contract is structured. The seller can pay as much as 6% of the borrower's closing costs for a VA loan. Many people take advantage of this. Be sure to talk to your realtor about this seller concession.

Do I need a down payment?

No, one of the great benefits of using a VA loan is that you can get approved for a VA loan with no money down. If the loan and sales contract are set up correctly with the seller covering the closing costs, then you basically get a home loan for 100% of the sales price.

What is the VA funding fee?

The VA funding fee is what the VA charges to guarantee the loan. It is not a fee that has to be paid at closing out of pocket. This fee can be simply added to your base loan amount and is paid over the life of the loan. This fee basically takes the place of the mortgage insurance that you would normally find on a conventional loan.

I have a service related disability. Am I exempt from the VA funding fee?

Yes. As long as you're rated at 10% disability and are receiving disability income from the VA you should be exempt from any of VA's funding fees. Be sure to tell your lender this, as it can save thousands of dollars.

Visit the VA site for more information on disability funding.

I was turned down for a conventional loan. Can I possibly qualify for a VA loan?

Yes, it is still possible to qualify for a VA loan. Please contact one of our home loan specialists to request a VA loan quote.

Will I have mortgage insurance?

No, one of the benefits of the VA loan is that it allows you borrow up to 100% of the home's appraised value (up to $417,000) with out having to pay mortgage insurance. The VA charges a funding fee that is much less expensive than mortgage insurance and isn't part of your monthly mortgage payment.

Example:

If a buyer's home appraises for $100,000 and is purchased for $90,000, the borrower can borrow as much as $90,000. But if the home is purchased for $100,000 and only appraises for $90,000 the borrower can only borrow $90,000.

* According to the United States Department of Veterans Affairs.