Qualifying Michigan veterans and active-duty service members are entitled to benefits that are guaranteed by the Department of Veterans Affairs (VA). One of the most notable benefits is the opportunity to secure a Michigan VA home loan. Whether you’re buying or building a new home, or renovating your existing home, you might be eligible for a loan that you can use to help save you thousands of dollars on your mortgage.
Keep reading to learn more about Michigan VA loans from Griffin Funding.
Areas We Serve
Griffin Funding is proud to offer VA loans in the Wolverine State, including the following areas:
- Ann Arbor
- Grand Rapids
- Farmington Hills
- Rochester Hills
We’re licensed in the entire state of Michigan, so don’t worry if you don’t see your city or town on this list. Our loan officers can help you find the right loan for you, even if you don’t qualify for a Michigan VA loan.
How Do VA Loans Work in Michigan?
Michigan VA home loans are not administered by the Department of Veteran Affairs (VA), but they are guaranteed by the VA. This means that the VA is insuring your loan if you default. To secure a Michigan VA loan, you must go through a private lender.
The loan process is virtually the same in most states but may differ depending on the lender you work with. Follow these steps to begin our mortgage loan approval process for a VA loan:
- Get a Certificate of Eligibility (COE). Your COE comes directly from the VA, so you’ll need to contact them and have them mail you a copy, which can take up to six weeks. Griffin Funding can also assist you with this process.
- Submit your application to us, which can be completed online.
- You’ll receive a quote from Griffin Funding. Once you receive your quote, you’ll be able to lock it in immediately to ensure your rate.
- Provide us with additional information if necessary.
- Schedule a pest inspection and appraisal before you buy the home, as required by the VA.
- Review your final loan documents, then our loan officers will finalize your loan.
Once these steps are complete, you can move forward with making an offer and closing on your home.
For more information about our process, check out our step-by-step guide to funding your loan.
VA Loan vs. Conventional Home Loan in Michigan
There are several notable differences between conventional and VA home loans. For one, VA loans require no down payment, while traditional mortgages may require up to a 20% down payment. Additionally, mortgage insurance is not required for a VA loan, but it is typically required for any conventional loan where the borrower puts less than 20% down.
VA loans are also backed by the VA, providing lenders with more security, which makes qualifying much easier.
VA Loan Advantages in Michigan
In general, VA loans offer more benefits for veterans than conventional mortgages. If you’re a veteran or service member, you’ll enjoy advantages of VA loans such as:
- No down payment
- Easier qualifications to meet
- No private mortgage insurance (PMI) required
- Lower FICO score accepted (550 or higher for purchase loans)
- No credit score or income asset verification for VA-to-VA refinances
VA Loan Limits in Michigan
As of January 2020, VA loan limits no longer apply to qualified service members and veterans with their full loan entitlement.
If loan limits still apply to you, your limit is typically determined by where your new home is located. These limits change per county and per state. As of 2021, the loan limit for all counties in Michigan is $548,250. If you need a loan exceeding this amount, you’ll be required to make a down payment.
What Are the Qualifications for a VA Loan in Michigan?
Those who can apply for a VA home loan in Michigan are active-duty service members and veterans, along with spouses of members lost while serving.
However, not every veteran and military member automatically qualifies, there are certain requirements for VA loans, including:
Lenders will check your credit score no matter which loan you’re applying for because they need to ensure that you’re someone who pays back debts. The credit score requirement for a VA loan is usually lower than a conventional loan to provide more leniency to veterans. We require a minimum credit score of 550 for our Michigan VA loans.
Your income ensures that you have the necessary funds to pay back the loan monthly. To verify your income, your lender will look at tax returns and pay stubs.
The VA also has its own requirements, including:
Appraisal by VA
The appraisal is a way of calculating the value and structural stability of the home to ensure you’re not severely overpaying before they guarantee the loan.
Active Duty Service Requirement
Active duty service members must meet the minimum active duty service requirements as outlined by the VA. You must have served for at least 90 consecutive days during wartime or 181 days during peacetime, or you must have served six years in the National Guard or Reserves.
For more information on eligibility, visit how to get a VA home loan.
Types of VA Mortgage Programs
We offer different types of VA home loans in Michigan to fit the unique needs of our borrowers. These include:
- VA Purchase Loan: This VA loan allows you to purchase, build, or renovate a home. However, this home must serve as your primary residence.
- VA Streamline Refinance Loan (IRRRL): A VA interest rate reduction refinance loan (IRRRL) helps veterans refinance their existing homes to reduce their interest rate or monthly payment.
- VA Cash-Out Refinance Loan: With VA cash-out loans, you can refinance your home and leverage your home equity for cash. This allows you to access money when you need it most.
Learn more information about Griffin VA loans, so you can ensure it’s the right decision for you.
Apply for a VA Loan in Michigan
You may qualify for a VA loan that can help save you thousands of dollars. We can help you secure a loan in Michigan and make the process a lot easier at the same time. At Griffin Funding, we’re proud to assist service members in achieving their goals of becoming a homeowner or saving on their mortgage.
Ready to start the VA loan process? Complete an application online today to get started.