VA loans in Michigan have supported Wolverine State veterans, active-duty service members, and their families in homeownership since 1944. These loans enable our brave, eligible service members to buy, build, or improve their homes.
With favorable terms and special benefits, VA loans remain a valuable resource for Michigan veterans looking to secure or improve their homes.
This guide covers the essentials of VA loans, eligibility requirements, available loan types, and the unique advantages for veterans in Michigan.
Sponsored
- Lending in MI, OH, TN, FL, CO, MN, & PA
- Quick responses, so you’re never left waiting.
- Loan Options designed to fit your financial goals.
- Simple Application Process with Clear Communication
- Over 7,000 Five Star Reviews
What are VA loans?
A VA loan is a specialized mortgage provided by private lenders—banks and mortgage companies, for example—with a portion of each loan guaranteed by the U.S. Department of Veterans Affairs (VA).
This VA guarantee reduces the lender’s risk, enabling them to offer clients more favorable loan terms than most conventional loans, such as:
- Lower interest rates
- No down payment requirement,
- No need for private mortgage insurance (PMI)
VA loans can be used to buy an existing or pre-construction home or refinance an existing loan.
Eligibility requirements for VA loans in Michigan
To qualify for a VA loan, Michigan applicants must meet specific eligibility criteria connected to their service history or relationship to a service member.
Generally, eligibility is granted to:
- Veterans: Veterans who meet length-of-service requirements are eligible for VA loans. The length of service needed varies depending on when and where the veteran served.
- Active-duty service members: Service members on active duty qualify after at least 90 consecutive days of service.
- Reservists and National Guard members: These individuals may qualify under certain conditions, usually after six years of service or if called to active duty.
- Surviving spouses: Spouses of deceased veterans or service members listed MIA or POW—missing in action or prisoners of war—may qualify for a VA loan in certain cases.
VA loans are a widely utilized benefit for Michigan veterans.
In 2023, Michigan veterans received over $1.8 million in VA-backed home loans to assist with home purchases or refinancing.
Types of VA loans available in Michigan
VA loans go beyond the typical home purchase mortgage, providing flexibility for specific needs. Here are some additional VA-backed loan types:
- Energy Efficient Mortgage: This loan allows veterans to make energy-efficient home upgrades—like installing solar heating or upgrading insulation—which can lower utility costs.
- Alteration and Repair Loan: An alteration and repair loan provides funding to cover upgrades or necessary repairs for veterans who want to improve or modify their current homes.
- Construction Loan: VA construction loans are available for those who want to build a new home from the ground up.
- Farm Residence Loan: Veterans interested in purchasing a farm residence can use a VA loan to finance a property that includes agricultural land.
Advantages of a VA loan
VA loans offer unique advantages, making them an attractive option for Michigan veterans and service members. These benefits include:
- No down payment required: The VA doesn’t require a down payment, which can reduce borrowers’ upfront costs; however, some lenders may have additional requirements.
- No private mortgage insurance (PMI): Unlike conventional loans, VA loans do not require PMI, helping keep monthly payments lower.
- No loan limits with full entitlement: Veterans with full entitlement have no VA loan limit, which allows them to borrow without a cap on the amount, though individual lenders may impose their own limits.
- One-time VA funding fee: VA loans require a one-time funding fee that has an option to be rolled into the loan amount, reducing the need for additional cash at closing (note: Veterans receiving VA disability compensation are exempt from this fee).
- Limited closing costs: VA loans have restrictions on what veterans might be charged in closing costs, making it more affordable to finalize the loan.
- Assumable loans: VA loans can often be assumed by a different qualified buyer, providing flexibility if the homeowner needs to sell.
- Minimum property requirements: VA loans require that properties meet certain safety, sanitation, and structural standards to ensure homes are move-in ready and provide a healthy living environment.
- Foreclosure avoidance support: The VA provides loan technicians who work with veterans experiencing financial difficulty, offering resources to help avoid foreclosure.
Specially Adapted Housing (SAH) and Special Housing Adaptation (SHA) grants
The VA offers Specially Adapted Housing (SAH) and Special Housing Adaptation (SHA) grants to veterans with qualifying service-connected disabilities.
These grants are tailored to help veterans buy, build, or modify a permanent residence that accommodates their specific needs.
- SAH grants: These are intended for veterans who require significant modifications due to their disabilities. The grant limit for fiscal year 2024 is $117,014.
- SHA grants: SHA grants are for veterans who need to modify their homes to accommodate minor accessibility needs. The maximum SHA grant amount for fiscal year 2024 is $23,444.
Temporary Residence Adaptation (TRA) grants
For veterans who qualify for either SAH or SHA grants but temporarily live in a family member’s home, TRA grants are available to adapt that residence to suit the veteran’s needs better.
The fiscal year 2024 TRA grant limit is $47,130 for those eligible for an SAH grant and $8,415 for an SHA grant.
Is a VA loan in Michigan right for you?
VA loans in Michigan offer a range of benefits and financing options tailored to meet those who have served America.
From no down payment and no PMI requirements to options for adapting homes to specific needs, VA loans provide opportunities to secure and retain homeownership with favorable terms.
Whether purchasing a home, refinancing or modifying a residence to accommodate special needs, VA loans are designed to help Michigan veterans achieve stable housing.
Let MyPerfectMortgage.com match you with the perfect VA lender.
