How the VA loan works
- No down payment, no mortgage insurance. VA guarantees $36,000 on loans under $144,000 and up to 25 percent of larger loans; nearly 90 percent of VA loans are made with nothing down.
- Funding fee. Purchase, under 5 percent down: 2.15 percent first use, 3.3 percent after; 1.5 percent with 5 percent down; 1.25 percent with 10 percent. Financeable.
- Exempt from the fee: veterans receiving compensation for a service-connected disability, those eligible for compensation who draw retirement or active-duty pay instead, surviving spouses receiving DIC, service members with a proposed or memorandum rating before closing, and Purple Heart recipients on active duty.
- Certificate of Eligibility from va.gov, your lender or the county service officer. The Native American Direct Loan applies only to homes on federal trust land.
- Stacking. Minnesota Housing's Start Up program offers VA first mortgages with deferred down-payment loans up to $18,000 through SEMMCHRA (651-565-2638); see housing. The disabled-veteran tax exclusion applies on top once you homestead.
- Adapting the house. Specially Adapted Housing grant up to $126,526 and Special Home Adaptation grant up to $25,350 in fiscal 2026; temporary-residence versions $50,961 and $9,100.
The arithmetic, on 716 Washington St
Asking price $289,000. Every column in the table above is built from four pieces, shown here for this listing so the others can be checked the same way.
| Loan, first use, fee financed | $289,000 × 1.0215 = $295,214 |
|---|---|
| Monthly rate r | 6.76% ÷ 12 = 0.005633 |
| Principal and interest, 360 payments | $295,214 × r ÷ (1 − (1 + r)−360) = $1,917 |
| Same, fee exempt (loan = price) | $289,000 → $1,876 |
| Tax basis | 2026 assessed value $169,300 |
| Ordinary homestead tax, per year | $2,313 (÷ 12 = $193) |
| Tax at 70%+ ($150,000 excluded) | $315 |
| Tax at 100% P&T ($300,000 excluded) | $0 |
| Insurance, per year | $979 (÷ 12 = $82) |
| Monthly, no rating | $1,917 + $193 + $82 = $2,191 |
| Monthly, 70%+ (fee exempt) | $1,876 + $26 + $82 = $1,984 |
| Monthly, 100% P&T (fee exempt) | $1,876 + $0 + $82 = $1,958 |
Tax formula, city parcels
Taxable value = market value − exclusion (ordinary homestead: 40 percent of the first $95,000, capped at $38,000, less 9 percent of value over $95,000; veteran: $150,000 or $300,000 flat). Net tax capacity = 1 percent of taxable value up to $500,000 and 1.25 percent above. Tax = capacity × 143.03 percent (the certified payable-2026 rate for county, city, school and special districts) + taxable value × 0.2007 percent (the school referendum levy on market value). The same formula runs the tax estimator, which reproduces county bills within a few dollars. Township parcels carry lower rates, so for those the county's current bill is scaled by the same ratio and marked with an asterisk.
Insurance
Minnesota's average premium in August 2026 was $2,399 for $300,000 of dwelling coverage (Insure.com), about $8 per $1,000; each listing uses the assessor's 2026 building value as the dwelling amount, with a $900 floor.
Sources: va.gov, benefits.va.gov, cem.va.gov, department.va.gov, veteranscrisisline.net, Minnesota Statutes and Rules at revisor.mn.gov, revenue.state.mn.us, dps.mn.gov, mn.gov/mdva, Goodhue and Rice County veterans service pages, macvso.org, mac-v.org, davmn.org, threeriverscap.org, mnlegion.org, Minnesota Gambling Control Board, IRS and ProPublica filings, Kenyon Leader 2016–2025, KDHL, City of Kenyon council packets and minutes 2019–2026; road distances from the OSRM router. Compiled September 13, 2026. This site is independent of every agency and organization named; confirm amounts with the county service officer before relying on them.
Questions
Can I buy a house in Kenyon with nothing down?
Yes. VA-backed loans need no down payment and no mortgage insurance, and nearly 90 percent are made with nothing down. On a $289,000 Kenyon listing, principal and interest at 6.76 percent is about $1,876 a month, or about $1,917 with the first-use funding fee financed.
What is the VA funding fee?
On a purchase with less than 5 percent down, 2.15 percent of the loan on first use and 3.3 percent on later uses; 1.5 percent with 5 percent down and 1.25 percent with 10 percent. It can be financed into the loan.
Who pays no funding fee?
Veterans receiving compensation for a service-connected disability, veterans eligible for compensation who draw retirement or active-duty pay instead, surviving spouses receiving DIC, service members with a proposed or memorandum rating before closing, and Purple Heart recipients on active duty.
How much does VA guarantee?
$36,000 on loans under $144,000 and up to 25 percent of larger loans, which is why lenders drop the down payment and the mortgage insurance.
Where do I get a Certificate of Eligibility?
Online at va.gov, through your lender, or through the county service officer.
What do the payment estimates on this site assume?
The Freddie Mac 30-year rate of 6.76 percent for the week of September 10, 2026, property tax on the parcel's 2026 county assessed value as a homestead at Kenyon's certified rates, Minnesota-average insurance of about $8 per $1,000 of the assessor's building value, and no points, HOA or special assessments. The arithmetic is on the VA loan page.
Does the Native American Direct Loan apply in Kenyon?
No; it covers homes on federal trust land only.
Can I combine a VA loan with Minnesota Housing's Start Up program?
Start Up first mortgages are offered as conventional, FHA, VA and USDA loans through participating lenders, with deferred down-payment loans up to $18,000. The city's housing page lists SEMMCHRA, which administers Start Up in Goodhue County (651-565-2638).
Is there help adapting a house for a disability?
The Specially Adapted Housing grant is up to $126,526 and the Special Home Adaptation grant up to $25,350 in fiscal 2026, with temporary-residence versions of $50,961 and $9,100.