VA Loans in Michigan

Benefits of VA Loans may include:

• No down payment: Eligible borrowers may be able to finance 100% of the home's purchase price.
• No monthly private mortgage insurance (PMI): VA loans do not require monthly PMI, which can help reduce the monthly housing expense compared with some other low-down-payment loan options.
• Flexible credit and qualification guidelines: VA loan guidelines can provide flexibility for eligible borrowers, although standard income, credit, property, and underwriting requirements still apply.
• Limited borrower-paid closing costs: VA guidelines restrict certain fees that may be charged to the veteran, and sellers may be permitted to pay certain closing costs and concessions within VA guidelines.
• VA refinance options: Eligible homeowners with an existing VA loan may be able to use a VA Interest Rate Reduction Refinance Loan (IRRRL), often called a VA Streamline Refinance.
• Possible VA funding fee exemption: Some eligible borrowers may be exempt from paying the VA funding fee based on VA guidelines.

Who Is Eligible for a VA Loan?

VA home loan eligibility is based primarily on military service history and duty status. Eligible borrowers may include veterans, active-duty service members, members of the National Guard or Reserves, and certain surviving spouses.

The specific service requirements vary depending on when and how you served. A Certificate of Eligibility (COE) confirms that you meet the VA's service requirements for the home loan benefit. Borrowers must also meet applicable lender and VA requirements for credit, income, occupancy, and the property being financed. 

Understanding the VA Funding Fee

Most VA borrowers pay a one-time VA funding fee. The amount can vary based on the type of VA loan, down payment, and whether the borrower has used the VA home loan benefit before. The funding fee can generally be paid at closing or financed into the loan. 

Some borrowers are exempt from the VA funding fee, including certain veterans receiving or eligible to receive VA compensation for a service-connected disability and certain surviving spouses receiving Dependency and Indemnity Compensation. Other exemptions may also apply under VA guidelines. Veterans Affairs

VA Streamline Refinance (IRRRL)

Homeowners with an existing VA loan may be eligible for a VA Interest Rate Reduction Refinance Loan (IRRRL), commonly called a VA Streamline Refinance. An IRRRL is specifically designed to refinance an existing VA loan and may offer a more streamlined process than a traditional refinance. Eligibility and loan requirements apply.