🏠 The Ultimate Guide to VA Home Loans in Missouri 🏠
Welcome to the ultimate guide to VA home loans in Missouri! If you’re a veteran, active-duty service member, or eligible surviving spouse looking to purchase or refinance a home in the Show-Me State, then you’re in the right place. Our comprehensive guide has everything you need to know about VA home loans, including eligibility requirements, benefits, application process, and more. So, let’s dive in!
What is a VA Home Loan?
A VA home loan is a mortgage loan guaranteed by the United States Department of Veterans Affairs (VA) that helps veterans, active-duty service members, and eligible surviving spouses achieve homeownership. VA home loans are different from conventional loans in that they offer several unique benefits, such as no down payment, lower interest rates, and no private mortgage insurance (PMI) requirement. VA home loans are available from private lenders, such as banks, credit unions, and mortgage companies, and are backed by the VA, which means that the VA guarantees a portion of the loan in case of default.
VA Home Loan Benefits:
– No down payment required
– Lower interest rates than conventional loans
– No PMI requirement
– Lenient credit and income requirements
– No prepayment penalties
– Ability to finance closing costs
– VA assistance if you face financial hardship
VA Home Loan Eligibility Requirements:
To qualify for a VA home loan in Missouri, you must meet the following eligibility requirements:
Service Requirements:
– Served 90 consecutive days of active service during wartime
– Served 181 days of active service during peacetime
– Served six or more years in the National Guard or Reserves
– Are currently on active duty
Discharge Requirements:
– Honorable discharge
– General discharge under honorable conditions
– Other than honorable discharge (may be eligible under certain circumstances)
Occupancy Requirements:
– Intend to live in the property as your primary residence
– Obtain a Certificate of Eligibility (COE) from the VA
Income and Credit Requirements:
– Meet the lender’s minimum credit score and income requirements
– Have enough residual income after paying for housing, debt, and other expenses
VA Home Loan Application Process:
1. Determine your eligibility for a VA home loan
2. Obtain your Certificate of Eligibility (COE) from the VA
3. Find a VA-approved lender and prequalify for a loan
4. Find a home and make an offer
5. Complete the loan application and provide required documents
6. Wait for the lender’s underwriting and appraisal process
7. Close on the loan and move into your new home
VA Home Loan Limits in Missouri:
The VA does not set a cap on how much you can borrow with a VA home loan. However, there is a limit on how much liability the VA can assume, which affects the amount of money lenders can offer you. In Missouri, the VA home loan limit for 2021 is $548,250 for most counties. However, some high-cost counties have a higher limit.
County |
Loan Limit |
|---|---|
Adair |
$548,250 |
Andrew |
$548,250 |
Atchison |
$548,250 |
Audrain |
$548,250 |
Barry |
$548,250 |
Barton |
$548,250 |
Bates |
$548,250 |
Benton |
$548,250 |
Bollinger |
$548,250 |
Boone |
$548,250 |
Buchanan |
$548,250 |
Butler |
$548,250 |
Caldwell |
$548,250 |
FAQs About VA Home Loans in Missouri:
1. What is a VA funding fee?
The VA funding fee is a one-time fee that the VA charges to guarantee a portion of your VA home loan in case of default. The amount of the funding fee varies depending on factors such as your down payment amount and whether you’ve used your VA home loan benefit before.
2. Can I use a VA home loan to buy a second home or investment property?
No, VA home loans can only be used to buy or refinance your primary residence. You cannot use a VA home loan to buy a second home or investment property.
3. What credit score do I need to qualify for a VA home loan?
Each lender sets its own minimum credit score requirement. However, most lenders require a credit score of at least 620 to qualify for a VA home loan.
4. Do I need to pay for an appraisal with a VA home loan?
Yes, you will need to pay for an appraisal as part of the VA home loan process. The appraisal helps determine the fair market value of the property you’re purchasing.
5. Can I refinance my current mortgage with a VA home loan?
Yes, you can refinance your current mortgage with a VA home loan through the VA’s Interest Rate Reduction Refinance Loan (IRRRL) program or the VA Cash-Out Refinance program.
6. How long does it take to get a VA home loan?
The time it takes to get a VA home loan varies depending on factors such as the lender’s underwriting process and how quickly you can provide required documents. However, the average closing time for a VA home loan in Missouri is around 30 to 45 days.
7. Can I get a VA home loan if I’ve filed for bankruptcy?
Potentially, yes. Depending on the type of bankruptcy you filed and when it was discharged, you may be able to qualify for a VA home loan. Talk to a VA-approved lender to learn more.
8. How much can I borrow with a VA home loan?
The amount you can borrow with a VA home loan depends on several factors, such as your income, credit score, and the appraised value of the property. The VA does not set a cap on how much you can borrow, but there is a limit on how much liability the VA can assume, which affects the amount of money lenders can offer you.
9. What documents do I need to apply for a VA home loan?
You will need to provide documents such as your Certificate of Eligibility (COE), military discharge papers, proof of income and employment, bank statements, and tax returns. Your lender will inform you of all the required documents.
10. Can I use a VA home loan to buy a manufactured or modular home?
Yes, you can use a VA home loan to buy or refinance a manufactured or modular home if it meets certain criteria, such as being permanently affixed to a foundation and being classified as real property.
11. Can I use a VA home loan to make home improvements?
Yes, you can use a VA home loan to make improvements to your primary residence, such as installing energy-efficient upgrades or making accessibility modifications.
12. Can I use a VA home loan to buy a condo?
Yes, you can use a VA home loan to buy a condo if it is on the VA’s list of approved condos or meets certain criteria, such as being in compliance with local zoning and building codes.
13. What happens if I default on my VA home loan?
If you default on your VA home loan, the VA will work with the lender to help you avoid foreclosure. However, if foreclosure is inevitable, the VA will pay a portion of the remaining loan balance to the lender as part of its guaranty.
Conclusion:
Now that you know everything there is to know about VA home loans in Missouri, it’s time to take action. If you’re eligible for a VA home loan, don’t wait any longer to achieve the dream of homeownership. Contact a VA-approved lender today and start the application process. Remember, VA home loans offer several unique benefits that can save you thousands of dollars in the long run. So, what are you waiting for?
Disclaimer:
The information in this article is intended to be a general overview of VA home loans and should not be construed as legal, financial, or professional advice. You should always consult with a qualified expert before making any financial decisions.