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Farmers Bank of Kansas City · VA Home Loans
VA Mortgages for Veterans & Military Borrowers
Put your earned home loan benefit to work. Explore VA purchase and refinance options with Farmers Bank of Kansas City, and get guidance on eligibility, financing costs, and your next step.
VA eligibility and lender approval are required. No-down-payment financing depends on entitlement, appraised value, and loan requirements. Closing costs and a VA funding fee may apply.
What Is a VA Mortgage?
A VA-backed mortgage is a home loan made by a participating lender and partially guaranteed by the U.S. Department of Veterans Affairs. The guaranty supports financing benefits for eligible borrowers; it does not eliminate the need to qualify for the loan.
For Veterans, service members, and eligible surviving spouses, a VA loan can be an option worth comparing with conventional financing. The best fit depends on your eligibility, budget, property, and total borrowing costs.
Potentially Buy With No Down Payment
Eligible borrowers may purchase without a down payment when entitlement, property value, and lender requirements support the transaction. Choosing to make a down payment can still reduce the amount borrowed.
No Monthly Mortgage Insurance
VA-backed loans do not require private mortgage insurance or FHA mortgage insurance premiums. A VA funding fee may apply unless you qualify for an exemption.
A Benefit You May Use Again
VA financing is not limited to first-time homebuyers. Future use depends on available or restored entitlement and the requirements of the next transaction.
Who Is Eligible for a VA Home Loan?
Service-Based Eligibility
Eligibility can extend to qualifying Veterans, active-duty service members, National Guard and Reserve members, and certain surviving spouses. Requirements depend on service history, duty status, and other VA criteria.
Your Certificate of Eligibility helps document the VA benefit available to you. It does not guarantee mortgage approval.
Review official VA eligibility requirementsMortgage Qualification
The lender also reviews your credit, income, debts, assets, and property. VA underwriting considers residual income—the income remaining after specified obligations—as well as other qualifying factors.
Ask for a review of your complete scenario rather than relying on a generic online credit-score or debt-ratio threshold.
Start With Your Certificate of Eligibility (COE)
You can request a COE through VA.gov. Depending on your circumstances, a lender may also be able to obtain it for you. Documents may include a DD214, statement of service, or other records appropriate to your service history.
What Homes Can a VA Purchase Loan Finance?
VA purchase financing generally requires owner occupancy. A qualifying single-family home, a condominium in a VA-approved project, or an eligible property with up to four units may meet program requirements. Property condition, intended use, and lender guidelines also matter. Confirm the specific property’s eligibility before relying on financing.
VA Mortgage Rates, Funding Fees & Closing Costs
Your VA mortgage rate depends on market conditions and your loan scenario. Compare the interest rate, annual percentage rate (APR), discount points, lender fees, and rate-lock terms together. A lower advertised rate may come with additional upfront costs.
Explore today’s mortgage rates, then request a personalized VA quote to review pricing for your proposed loan.
Understanding the VA Funding Fee
The funding fee is a one-time program charge. The amount depends on loan type and, for some loans, prior benefit use and down payment. Eligible borrowers may be exempt, including certain borrowers with qualifying service-connected disability benefits.
When applicable, the fee may be paid at closing or financed. Financing it increases the loan balance and interest paid over time.
See current VA funding fees and exemption rulesPlan for the Full Cost of Closing
No down payment does not mean no cash to close. Costs may include appraisal, title, recording, lender charges, prepaid taxes and insurance, and escrow deposits. Seller-paid costs or lender credits may help, subject to applicable rules and the transaction.
Review your Loan Estimate for itemized costs. For a VA purchase loan, do not assume ordinary closing costs can be added to the loan the same way as the funding fee.
Budget Beyond Principal & Interest
Your total housing expense can include property taxes, homeowners insurance, flood insurance when required, and association dues. Even on a fixed-rate loan, changes in taxes or insurance can affect your total payment.
VA Loan vs. Conventional Mortgage
Compare actual offers for the same property, loan amount, and timeframe. VA financing can offer valuable benefits, but the total cost deserves a side-by-side review.
| Feature | VA Mortgage | Conventional Mortgage |
|---|---|---|
| Eligibility | VA service eligibility and lender qualification. | Lender and applicable program qualification; military service not required. |
| Down payment | May be unnecessary when entitlement, value, and loan requirements permit. | Varies by program; some options allow less than 20%. |
| Mortgage insurance | No monthly VA mortgage insurance. | PMI is commonly required with less than 20% down. |
| Program fee | VA funding fee may apply unless exempt. | No VA funding fee; other loan costs apply. |
| Property use | VA purchase loans generally require owner occupancy. | Programs may accommodate primary homes, second homes, and investment properties. |
VA Refinance Options
Already own a home? Ask which refinance options are available for your loan and goals. Consider closing costs, the new term, and total interest—not only the proposed payment.
VA Streamline Refinance (IRRRL)
An Interest Rate Reduction Refinance Loan, or IRRRL, refinances an existing VA-backed loan. It may help lower the rate or move from an adjustable rate to a more stable payment structure. It is not a cash-out refinance.
Benefit, seasoning, cost-recoupment, and lender requirements apply. A lower payment is not guaranteed.
Learn about VA IRRRL requirementsVA Cash-Out Refinance
A VA-backed cash-out refinance may allow an eligible borrower to access equity or refinance a non-VA mortgage into a VA loan. Qualification involves the borrower, property, available entitlement, and applicable requirements.
A new loan changes your mortgage terms. Borrowing against equity increases debt secured by your home.
Explore mortgage refinancingHow to Get Started With a VA Mortgage
Confirm Your Benefit
Review your service eligibility and COE, including available entitlement and funding-fee status.
Review Your Budget & Loan Scenario
Discuss your purchase or refinance plans, income, debts, and available funds. Compare estimated payments and total costs.
Complete the Application & Property Review
Provide requested documents and work through underwriting, valuation, title, and other applicable requirements. A VA appraisal does not replace a home inspection.
Review Your Final Terms
Confirm your rate-lock terms, payment, closing costs, and cash to close. Review your disclosures and ask questions before signing.
VA Mortgage FAQs
Do VA loans require a down payment?
Many eligible borrowers can buy without a down payment. Available entitlement, the appraised value, and lender requirements determine whether that is possible for a specific transaction. Closing costs may still apply.
Does a Certificate of Eligibility guarantee loan approval?
No. A COE documents VA benefit eligibility and entitlement information. The lender still evaluates credit, income, debts, and the property before approving a mortgage.
Can I use my VA home loan benefit more than once?
Yes, repeat use may be possible. Your next transaction depends on available or restored entitlement, your existing VA loan obligations, and loan qualification. Have your COE reviewed before planning another purchase.
Is there a maximum VA loan amount?
For eligible borrowers with full entitlement, VA does not impose a loan limit. That does not mean unlimited borrowing: lender approval, income, credit, and property value still matter. With remaining entitlement, county limits can affect the guaranty and whether a down payment is needed.
Can I use a VA loan for a vacation home or investment property?
A VA purchase loan generally requires that you occupy the property as your home. A qualifying property with up to four units may be eligible when you occupy one unit and meet the requirements. A vacation home or purely investment purchase does not meet the usual VA purchase occupancy standard.
Do all borrowers pay the VA funding fee?
No. VA provides exemptions for qualifying borrowers. Confirm your funding-fee status with your lender using the appropriate VA documentation before closing.
Can I refinance a conventional mortgage into a VA loan?
An eligible borrower may be able to refinance a non-VA mortgage through the VA cash-out refinance program, subject to qualification. An IRRRL is for an existing VA-backed loan.
How do I compare VA mortgage rates?
Compare quotes using the same loan scenario and similar timing. Review the interest rate, APR, points, fees, funding-fee treatment, and lock period. Ask for a personalized quote rather than relying only on an advertised rate.
Explore What Your VA Benefit Could Make Possible
Start with a personalized quote and a conversation about your goals. Our mortgage team can help you understand the next steps for your purchase or refinance.
More Resources for Your Home Loan
Home loan FAQs · Fixed-rate mortgages · Official VA home loan information
Farmers Bank of Kansas City is a branch of Farmers Bank & Trust. NMLS #613839. Member FDIC. Equal Housing Lender. Farmers Bank of Kansas City is not affiliated with or endorsed by the U.S. Department of Veterans Affairs or any government agency. VA-backed loans are subject to VA eligibility, available entitlement, lender underwriting, and property requirements. Credit and collateral are subject to approval. Rates, fees, terms, and program availability are subject to change. No-down-payment financing is not available for every transaction. Closing costs and a VA funding fee may apply; funding-fee exemptions require verification. Refinancing may increase total interest costs, extend repayment, or increase the balance owed. This information is educational and is not a loan approval, rate lock, guarantee, or commitment to lend.
© 2026 Farmers Bank of Kansas City is a branch of Farmers Bank & Trust. All Rights Reserved.
© 2026 Farmers Bank of Kansas City is a branch of Farmers Bank & Trust. All Rights Reserved.