VA Loan Report
Realtor’s Edition
Missouri - 2010

2
The Veterans Administration now “The one important
guarantees more than 3,300 loans in factor in a VA loan is
Missouri. We will show you how to that once a purchaser
earn an additional 3-4 deals per year is preapproved, you
are generally assured
from this group of home buyers with that they will have
very little effort. a successful closing
because VA does
require good credit
The next few pages provide Realtors for a buyer. Another
with the key basics of VA loans. advantage for VA loans
In less than five minutes, you’ll is that a vet can use his
eligibility more than
be prepared to discuss, market once.”
and sell like few other agents in
Missouri.
The CurrenT
LandsCape Kathy Jones
Prudential Patterson
On the heels of the subprime collapse, the Department of Realtors
Veterans Affairs guaranteed more than $68 billion in single-
family loans for the fiscal year ending Sept. 30, 2009, an 80
percent increase from last year. There are currently more
By the Numbers
than 23 million veterans across the country, including almost Missouri Realtors by Year
530,000 in Missouri. 60,000
Against this backdrop, the ranks of registered Realtors are 52,322
51,562
thinning nationwide. In Missouri, the number of registered 50,000 48,101
agents has fallen 8 percent since 2007. That shortage
is forcing veterans to spend more time hunting for a
qualified agent than ever before. Realtors who can cater 40,000
2007 2008 2009
to this deserving demographic stand to boost their book of
business significantly as veterans return home from Iraq and
Afghanistan in the coming months.

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Missouri CounTies wiTh highesT
perCenTage of VeTerans
Boone
Jackson
St. Charles
Johnson Pettis
Cass M St. Louis
or
ga
n
Henry
Camden St
Pu Fr .
las an
ki co
is
Texas
St
on
e
Taney Howell
Pulaski Camden Stone Morgan Henry Johnson Taney Texas
27% 18.5% 16.1% 15.8% 15.6% 15.6% 15.2% 15.1%
Howell Pettis St. Fran- Cass St. St. Louis Jackson Boone
14.9% 14.3% cois 13.3% Charles County 11.1% 9.3%
14.1% 11.2% 11.2%

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The Veteran Percent of people,
18 years and
over, who are
Population
veterans by state
15.5 to 17.1
14.0 to 15.4
0 100 Miles
2000 U.S. percent 12.7
12.7 to 13.9
5.4 to 12.6
Percent of people,
18 years and
over, who are
veterans by county
18.0 to 39.1
15.0 to 17.9
12.7 to 14.9
U.S. percent 12.7
8.5 to 12.6
Less than 8.5
Source: U.S. Census Bureau, Census 2000 Summary
0
File 3. American Factfinder at fact nder.census.gov 0 100 Miles
0 100 Miles 100 Miles
provides census data and mapping tools.
The BasiCs
VA loans are backed by the government, a layer of protection that
often translates to excellent loan terms for qualified veterans.
VA loans can be used for a host of purposes, including:
• To buy, build or refinance an owner-occupied residence
• To refinance an existing VA-guaranteed or direct loan
• To repair, alter or improve a veteran-owned residence
• To simultaneously purchase and improve a home
• To buy a single-family residential unit in a VA-approved
condominium development
• To buy a farm residence owned and occupied by the
veteran

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There are a few limitations on properties that can be financed with
a VA loan. VA loans cannot be used for: “I love VA loans! It’s
a fantastic product for
the client. Sellers can
• Land loans
contribute up to 4%
• Investment properties
of the purchase price,
• Buying or building a combined residential and business there’s no PMI and
property, unless: typically, VA loans have
The property is primarily residential, with no more a better interest rate
than one business unit and a nonresidential area than most conventional,
that doesn’t exceed 25 percent of total floor space even FHA financing!
• Buying more than one separate residential unit or lot No money down for the
buyer is always great!”
unless one is owner-occupied and there’s evidence that:
The units are not available separately Kelly Sloan, Broker
The units have a common owner, were considered Home Sweet Home Realty
one unit in the past or are assessed as one unit
Agent Reminder:
VA Loans come with
The BenefiTs NO DOWN PAYMENT.
VA Loans provide qualified veterans with an array of financial
and lifestyle benefits, including:
• Less stringent qualification guidelines
• No down payments
• No private monthly mortgage insurance
• No pre-payment penalties
• Higher allowable debt-to-income ratios than conven-
tional loans
• Sellers can pay up to 6 percent of closing costs and con-
cessions
• Refinance options that do not have credit score re-
quirements and require less stringent underwriting
requirements than traditional refinances.

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Loan LiMiTs Agent Reminder:
Today, the VA will
The VA pledges to repay a quarter of the loan amount in the
guarantee up to
event of default. The amount of that guarantee has recently $104,250, which has
increased, making homeownership more affordable to more boosted loan limits to
veterans and their families. $417,000 throughout
most of the country.
Today, the VA will guarantee up to $104,250, which has
boosted loan limits to $417,000 throughout most of the
country. However, there are higher loan limits in some of
the nation’s high-cost areas, such as Hawaii, California and
New York. In these high-cost regions, qualified veterans can
“The best feeling as
purchase a home worth up to $729,000 without putting down a realtor is watching
a single dollar. someone who
served our country
purchase a home. My
experience with VA
funding fee loans has always been
wonderful.”
The Veterans Administration charges a per-person funding
fee to help defray program costs. There are exemptions for
veterans with service-related disabilities, but generally the
fees change depending on the borrower’s military status and
down payment.
For regular military, the breakdown is:
Down Payment Funding Fee for First-Time
Use Brooke Sydenstricker
McCarty
None 2.15 percent Weichert, Realtors
5% or more 1.50 percent
10% or more 1.25 percent

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For the Reserves and National Guard, the funding fee table is:
Agent Reminder:
Down Payment Funding Fee for First-Time Appraisal costs typically
Use average about $350.
None 2.4 percent
5% or more 1.75 percent
10% or more 1.50 percent
For cash-out refinancing loans, the funding fee is 2.15 percent
for regular military and 2.4 percent for Reserves and National
Guard.
appraisaLs
Each VA field station sets a maximum appraisal and inspection
fee based on comparable costs. Appraisal costs typically
average about $350. Here is the cost breakdown for Missouri:
Single-Family Condo Manufac- Re-
Home Condo tured Home Inspection
$300 $325 $225 $65
Manufactured homes are eligible for a 30-year VA loan if:
• It is classified and taxed as real property
• It is property attached to a permanent foundation
• It conforms to applicable building codes and zoning
requirements

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New construction (those less than a year old and never owner-
Agent Reminder:
occupied) is eligible if either:
The VA offers flexible
refinance options for
• Covered by a one-year VA builder’s warranty qualified borrowers.
• Enrolled in a HUD-accepted 10-year insured protection
plan, or
• Built by a veteran as the general contractor for his or
her own occupancy
There are exceptions for veterans if builders will not provide
a one-year builder’s warranty or a 10-year insured protection
plan.
repayMenT and By the Numbers
Refinances
refinanCe 150,000
144,800
TThe VA guaranteed more than 144,000 refinances in fiscal 120,000
year 2009, a jaw-dropping 300 percent increase from FY 08. 90,000
60,000
The VA offers flexible refinance options for qualified borrowers.
30,000 37,300
0
Veterans can utilize a cash-out refinance to consolidate debt 2008 2009
or refinance to obtain a better interest rate using an Interest
Rate Reduction Loan, better known as a VA Streamline.
Qualified borrowers can’t get cash back with a VA Streamline.
But any out-of-pocket costs can be rolled into the cost of the
new loan – or borrowers can accept a higher interest rate and
allow the lender to cover the costs.
There are also refinance options for veterans with conventional
home loans. Qualified veterans can currently refinance up to
100 percent of their property’s appraised value. Veterans and
their families can also prepay on their loan without financial
penalty.
Qualified borrowers can’t get cash back with a VA Streamline.
But any out-of-pocket costs can be rolled into the cost of the

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new loan – or borrowers can accept a higher interest rate and
allow the lender to cover the costs.
There are also refinance options for veterans with conventional
home loans. Qualified veterans can currently refinance up to
100 percent of their property’s appraised value.
good Business
for reaLTors and
Their CLienTs
Veterans are increasingly turning to the Veterans Admin-
istration when the time comes to purchase or refinance a
home. A roiling national economy and hardened credit market
have only underscored the urgency.
But surprisingly few Realtors have significant experience with
VA loans. Those who can harness the power of this dynamic
and deserving demographic will have a significant advantage
as the agent pool continues to shrink.
VAMortgageCenter.com®
PROUD TO SERVE THOSE WHO HAVE SERVED OUR NATION
This guide was produced by VA Mortgage Center.com, America’s #1 VA Loan
Purchase Specialists. Founded in 2003, VAMC.com has worked with over
500,000 military families and serviced over $1 billion in VA Loans in 2009.
800-405-6682 Licensed Nationwide www.vamortgagecenter.com