Did you know you may be eligible for a zero-down loan without any maximum limit if you are a veteran or military service member in Missouri? In 2020, the VA eliminated all limits for VA loans in Missouri VA loans for most borrowers. This means that first-time VA homebuyers and those with full entitlements can borrow as much money as the lenders will allow. The amount of your Missouri VA home loan will now depend more on your financial status than the local housing market. VA loan limits are also still available for homebuyers with VA loans or partial entitlement. You may qualify if you are one of the 401,779 veterans living in Missouri, active-duty servicemember or eligible surviving spouse of a military member.

There’s no Missouri VA loan limits in 2022 for those with full entitlement

The Department of Veterans Affairs eliminated MO VA home loan limits for fully-qualified borrowers in 2020. That means you can borrow more because you don’t have to worry about finding a house within your local limits. As such, VA home loans now have increased appeal since removing the loan limit requirement. This is especially true when compared to other government mortgage loans. FHA loans, also government-backed, have loan limitations that are based on local housing prices. In most areas across the country, the FHA limit for 2022 is $420,680. Loan limits also apply to conforming conventional mortgages, which are insured by Fannie Mae or Freddie Mac rather than a government agency. All that being said, it’s important to remember that just because qualified applicants don’t have to meet any VA loan limit in Missouri doesn’t mean that you can purchase a home at any price.

Lenders now decide how much loan you can afford

Your ability to repay the loan now depends on on the private mortgage lender that issues your VA-backed loan. Along with some general VA loan requirements, the lender will consider several factors.

  • Applicant Credit Score: VA borrowers usually need to have a credit score of 620 or better, although some lenders are rumored to lend down to a 580 from time to time. Additionally, Missouri VA loan rates often depend on an applicant’s credit score.
  • Income: Lenders will verify your income for the past 2 years to ensure you are earning enough to pay your monthly mortgage payment. VA loans employ two methods of evaluating applicant income to determine how much mortgage they can afford, known as the Debt-to-Income Ratio and the Residual Income method. Of course, you should be asking yourself how much mortgage can I afford before applying for any home loan.
  • Applicant Debt-To Income Ratio (DTI): Your debt-to-income ratio compares your monthly debt payments to your monthly income. VA even allows the lender to approve them at a higher DTI if they have other compensating factors. While there’s no limit on VA loan programs for 2022, its ultimately up to your lender and your personal circumstances to determine how much you can borrow.

You can search for an approved VA lender in Missouri, including in the following cities and towns here:

Affton, Arnold, Aurora, Ballwin, Barnhart, Battlefield, Bellefontaine Neighbors, Belton, Berkeley, Black Jack, Blue Springs, Bolivar, Bonne Terre, Boonville, Branson, Brentwood, Bridgeton, Cameron, Cape Girardeau, Carl Junction, Carthage, Caruthersville, Center, Charleston, Chesterfield, Chillicothe, Chillicothe (Township), Clayton, Clinton, Clinton (Township), Columbia, Concord, Cottleville, Cotton Hill, Crestwood, Creve Coeur, Dardenne Prairie, De Soto, Des Peres, Dexter, Ellisville, Eureka, Excelsior Springs, Farmington, Ferguson, Festus, Florissant, Fort Leonard Wood, Fulton, Gladstone, Glendale, Grain Valley, Grandview, Greenwood, Hannibal, Harrisonville, Hazelwood, Independence, Independence, Jackson, Jefferson City, Jennings, Joplin, Kansas City, Kearney, Kennett, Kirksville, Kirkwood, Ladue, Lake St. Louis, Lebanon, Lee’s Summit, Lemay, Liberty, Liberty, Macon, Manchester, Maplewood, Marshall, Marshfield, Maryland Heights, Maryville, Mehlville, Mexico, Moberly, Monett, Murphy, Neosho, Nevada, Nixa, North Kansas City, Oak Grove, Oakville, Odessa, O’Fallon, Old Jamestown, Olivette, Overland, Ozark, Pacific, Park Hills, Parkville, Peculiar, Perryville, Pevely, Pleasant Hill, Polk, Poplar Bluff, Raymore, Raytown, Republic, Richmond, Richmond Heights, Rolla, Sappington, Savannah, Sedalia, Sherrill, Shrewsbury, Sikeston, Smithville, Spanish Lake, Springfield, St. Ann, St. Charles, St. John, St. Joseph, St. Louis, St. Peters, St. Robert, Sullivan, Sunset Hills, Town and Country, Trenton, Trenton (Township), Troy, Union, University City, Valley Park, Warrensburg, Warrenton, Washington, Waynesville, Webb City, Webster Groves, Weldon Spring, Wentzville, West Plains, Wildwood, Willard

How do I determine my entitlement level?

The VA Certificate of Eligibility, or COE, is what informs lenders of an applicant’s eligibility for a VA loan. It also indicates your level of entitlement. The COE helps the VA and your lender to communicate. Your COE may not make much sense at first glance. As an example, if a COE reflects a basic entitlement of $36,000, that number shows how much loan insurance the VA offers through the VA guarantee, rather than your potential borrowing potential. This VA insurance reduces the risk for the lender and eliminates the need to make a down payment or monthly mortgage insurance payments. The VA covers 25% of the amount you borrow on your home loan, regardless of how much it is approved by the lender. You may also want to refer to a VA loan calculator to help figure out your entitlement and potential borrowing power.

What does full entitlement refer to?

The maximum VA home loan benefits you’re eligible for is known as full entitlement. If you’re a first-time home buyer or it’s you’re first time using a VA loan, you’re likely to have a full entitlement. If you’ve used your VA benefits before, you may still be eligible for a full entitlement if the loan is fully repaid and your benefit is restored. Otherwise, you may be a borrowers that’s eligible for partial entitlement. That may be the case for someone who used an Missouri VA loan to purchase a home a few years back and is still paying that loan off. With a partial entitlement, an applicant may still be eligible for a VA loan but the mortgage must not exceed their local max loan amount for VA financing. There are other caveats that may apply related to your VA home loan entitlement eligibility. As an example, current VA loan holders or former borrowers who have been foreclosed will not be eligible for their full entitlement. You won’t get your full entitlement if you’ve short-sold a VA-backed loan which the VA had to reimburse. In fact, if you’ve had a foreclosure or short-sale in your past, you might not be eligible to receive another VA loan at all.

What is the maximum amount I can borrow if I have partial eligibility?

Since 2020, specific MO VA loan limits only apply to partial entitlement. Those mortgage limits are identical to the conventional conforming loan limit for a particular area. Conventional loan limits are set by the Federal Housing Finance Agency (FHFA) each year. The loan limits will depend on where you live and the property you purchase. They are determined based on local home prices. This FHFA map will show you the loan limits for your county. It’s not difficult to determine your county’s loan limit. However, it can be complicated to calculate how this limit will affect your home loan. To determine if you will need a downpayment on the VA loan, lenders use a complex equation. You can read our guide on buying an additional house with a VA loan. Talk to a VA lender if you only want to find out how much house you could afford using a VA loan. In just a few minutes, they can calculate your home’s potential price and look up your COE.

Missouri VA Home Loan Limits 2022 Map (for partial eligibility applicants)

Missouri VA County Loan Limits 2022 (for partial eligibility applicants)

County Name
Limit
ADAIR$424,100
ANDREW$424,100
ATCHISON$424,100
AUDRAIN$424,100
BARRY$424,100
BARTON$424,100
BATES$424,100
BENTON$424,100
BOLLINGER$424,100
BOONE$424,100
BUCHANAN$424,100
BUTLER$424,100
CALDWELL$424,100
CALLAWAY$424,100
CAMDEN$424,100
CAPE GIRARDEAU$424,100
CARROLL$424,100
CARTER$424,100
CASS$424,100
CEDAR$424,100
CHARITON$424,100
CHRISTIAN$424,100
CLARK$424,100
CLAY$424,100
CLINTON$424,100
COLE$424,100
COOPER$424,100
CRAWFORD$424,100
DADE$424,100
DALLAS$424,100
DAVIESS$424,100
DE KALB$424,100
DENT$424,100
DOUGLAS$424,100
DUNKLIN$424,100
FRANKLIN$424,100
GASCONADE$424,100
GENTRY$424,100
GREENE$424,100
GRUNDY$424,100
HARRISON$424,100
HENRY$424,100
HICKORY$424,100
HOLT$424,100
HOWARD$424,100
HOWELL$424,100
IRON$424,100
JACKSON$424,100
JASPER$424,100
JEFFERSON$424,100
JOHNSON$424,100
KNOX$424,100
LACLEDE$424,100
LAFAYETTE$424,100
LAWRENCE$424,100
LEWIS$424,100
LINCOLN$424,100
LINN$424,100
LIVINGSTON$424,100
MACON$424,100
MADISON$424,100
MARIES$424,100
MARION$424,100
MCDONALD$424,100
MERCER$424,100
MILLER$424,100
MISSISSIPPI$424,100
MONITEAU$424,100
MONROE$424,100
MONTGOMERY$424,100
MORGAN$424,100
NEW MADRID$424,100
NEWTON$424,100
NODAWAY$424,100
OREGON$424,100
OSAGE$424,100
OZARK$424,100
PEMISCOT$424,100
PERRY$424,100
PETTIS$424,100
PHELPS$424,100
PIKE$424,100
PLATTE$424,100
POLK$424,100
PULASKI$424,100
PUTNAM$424,100
RALLS$424,100
RANDOLPH$424,100
RAY$424,100
REYNOLDS$424,100
RIPLEY$424,100
SALINE$424,100
SCHUYLER$424,100
SCOTLAND$424,100
SCOTT$424,100
SHANNON$424,100
SHELBY$424,100
ST. CHARLES$424,100
ST. CLAIR$424,100
ST. FRANCOIS$424,100
ST. LOUIS$424,100
ST. LOUIS CITY$424,100
STE. GENEVIEVE$424,100
STODDARD$424,100
STONE$424,100
SULLIVAN$424,100
TANEY$424,100
TEXAS$424,100
VERNON$424,100
WARREN$424,100
WASHINGTON$424,100
WAYNE$424,100
WEBSTER$424,100
WORTH$424,100
WRIGHT$424,100

VA Loan FAQs

Can closing costs be included in a VA Loan?

If you don’t have enough funds to cover closing costs on your new home, you can include certain costs in your VA loan. You also have the option to roll your funding fee into your total mortgage amount. As for the fees that can’t be rolled into your mortgage per VA loan qualifications, you may still be eligible for seller or lender concessions that will lower the upfront cash cost.

What are the closing costs for a VA loan?

Borrowers generally pay different closing costs depending on where they live and the particulars of their transaction you have. Closing costs are often within the range of 3% and 5% of the total mortgage amount.

Who pays the closing costs of a VA loan?

The closing costs of a VA loan are generally split between the seller and buyer, however the seller costs must not exceed 4% of the total loan amount. The seller’s share usually includes the commission for real estate agents.

You, as the buyer, are responsible for the VA funding fee, origination fee and discount points, VA appraisal fee, title fees, and other costs, some of which can be financed. Fortunately, VA home loan requirements establish limitations on costs for home buyers, and also help you keep costs down by limiting the origination fee.

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