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Qualifying for a Kansas City home loan is difficult enough without mistakenly matching the wrong loan to your prospective property. While it may be tempting to attain funds from anywhere you can, it is important to know if your loan is eligible for the property you are pursuing.

VA Loans

VA loans, or Kansas City home loans guaranteed by the US Department of Veteran Affairs, are typically given to veterans or their surviving spouses.

Eligible Properties
  • Single Family Homes, including modular homes, make up the majority of VA loan properties.
  • Town Houses & Condominiums are eligible for a VA loan, but the entire complex must be approved by the Department of Veteran Affairs before you can purchase your single unit.
Possibly Eligible Properties

New Construction VA loans are more difficult to acquire because all builders, plans, and building sites must be VA-approved. In addition, you must complete a total of three different inspections and all VA-approved builders must provide a one year warranty on the home once it is completed.

FHA Loans

FHA loans, or Kansas City home loans insured by the Federal Housing Administration, have many different approval requirements. However, this does not mean you do not have plenty of housing options.

Eligible Properties
  • Properties with 1 – 2 units are your best bet when trying to apply an FHA loan.
  • Rural Property up to 10 acres can be financed by an FHA loan.
Possibly Eligible Properties
  • Properties with 3 – 4 units are eligible for an FHA loan as long as your rental income covers your monthly mortgage payment.
  • Condominiums must be pre-approved by the FHA. Properties vary by state and zip code.

USDA Loans

USDA loans, or Kansas City home loans backed by the US Department of Agriculture, helps modest-to-low income families find adequate housing. However, these loans are not limited to farming properties.

Eligible Properties
  • Single-Family Homes,can be financed  with a USDA loan as long as it is in a designated rural area. This does not necessarily exclude suburban homes.
  • New Construction can be made much easier by acquiring a permanent USDA loan in conjunction with an interim construction loan.
Possibly Eligible Properties
  • Condominiums must be approved by HUD, VA, FNMA, or FHLMC to be eligible for a USDA loan.
  • Duplexes can be financed by a USDA loan only if you wish to own half of the duplex.

Want to Learn  More About Eligible Properties for a Kansas City Home Loan?

Contact an Experienced Loan Officer for Details

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