VA Loans
Home Financing for Heroes: The Michigan VA Loan Program
A Benefit Earned, Not a Gift
For veterans and active-duty service members in Grand Rapids and throughout Michigan, the VA Loan is a powerful financial tool earned through service. Rooted in the GI Bill of 1944, this program was created to help those who served our country build a future on solid ground.
At Neighborhood Loans, we believe attainable homeownership shouldn’t be a battle. Whether you are transitioning to civilian life, stationed in Michigan, or a surviving spouse, the VA Loan offers unparalleled benefits like zero down payment, no mortgage insurance, and competitive interest rates that often beat conventional financing. It’s widely considered the best mortgage product on the market, and we are here to help you maximize it.
VA LOAN REQUIREMENTS
To unlock the benefits of a VA Loan, you generally need to meet specific service and financial criteria.
• Service History: You must be a Veteran, Active Duty Service Member, or eligible Surviving Spouse. Typically, this requires 90 days of active duty during wartime or 181 days during peacetime.
• Certificate of Eligibility (COE): This document proves your entitlement to the VA. We can often help you pull this instantly.
• Credit Score: While the VA has flexible standards, most lenders (including us) look for a credit score of at least 620.
• Occupancy: The home must be your primary residence. You generally cannot use a VA loan for a vacation home or pure investment property.
• Income: You must demonstrate steady income and the ability to repay the loan, along with meeting residual income requirements specific to VA guidelines.
How to Get Started with a VA Loan
You’ve handled tough missions; getting a mortgage should be the easy part. Our local team in Grand Rapids specializes in VA financing. We handle the paperwork, help you obtain your COE, and guide you from pre-approval to the closing table.
Benefits & Things to Consider with VA Loans
• 0% Down Payment: The headline benefit is real. You can purchase a home with no down payment, keeping your savings for moving costs or furniture.
• No Mortgage Insurance (PMI): Unlike FHA and Conventional loans, VA loans never require monthly mortgage insurance, regardless of your down payment. This saves you hundreds every month.
• Competitive Rates: Because the government guarantees a portion of the loan, VA interest rates can be lower than conventional rates.
• VA Renovation Options: Treadstone offers a VA Alterations and Repair Loan. You can finance the purchase price plus up to $50,000 for non-structural updates (like kitchens, roofs, or flooring) all in one loan.
• Property Tax Exemptions: In Michigan, many disabled veterans qualify for property tax exemptions or reductions. We can help you understand how this impacts your monthly payment.
VA Loans Are a Specialized Tool
While the VA Loan is incredible, it’s not a “one-size-fits-all” solution. For example, there is a VA Funding Fee (a one-time cost sent to the VA to keep the program running), though this is waived for veterans with a service-connected disability. Our Loan Officers act as your strategic partners, ensuring you understand every line item before you sign.
Loan-Specific Numbers & Details
VA loans have unique features regarding limits and fees.
| Feature | Detail |
|---|---|
| Loan Limits | Generally NO limit for borrowers with full entitlement. |
| Funding Fee | 1.25% to 3.3% of the loan amount, depending on your down payment and whether it is your first use. Waived for veterans with a service-connected disability. |
| Seller Concessions | Sellers can pay up to 4% of the loan amount toward your closing costs/debts. |
Note: Funding fees and limits are subject to change based on VA guidelines and your specific entitlement status.
VA Loan Comparisons
| Feature | VA Loan | Conventional Loan | FHA Loan |
|---|---|---|---|
| Min. Down Payment | 0% | 3-5% | 3.5% |
| Mortgage Insurance | None | Required < 20% down | Required (MIP) |
| Credit Flexibility | High | Strict | High |
| Closing Costs | Seller can pay 4% | Seller can pay 3% | Seller can pay 6% |
| Best For | Veterans & Military | Strong Credit/Large Down | Low Credit/Low Down |
What are VA Loan rates today?
VA mortgage rates can be lower than conventional rates due to the government backing. However, rates fluctuate daily based on market trends. For the most current and accurate quote for your specific situation, speak directly with one of our Loan Officers.
Rates shown are for illustrative purposes only, are subject to change, and are not a commitment to lend or a rate lock. Contact a Treadstone Loan Officer for a personalized quote.
Technical Information About VA Loans
- Loan Limits: For veterans with full entitlement, there is no cap on the loan amount, provided you qualify for the payments.
- Occupancy: Primary residence only.
- Property Types: Single-family homes, VA-approved condos, and multi-unit properties (up to 4 units) are eligible, provided you live in one unit.
- Restoration of Entitlement: You can use the VA loan benefit more than once! If you pay off a previous VA loan, you can restore your entitlement and buy again with 0% down.
Why Treadstone?
Aside from having the coolest mortgage staff on the planet, working with Treadstone gives you a distinct advantage in Michigan’s competitive market. We are a local lender with deep roots in Grand Rapids. We don’t rely on call centers; we rely on relationships. Our team understands the nuances of VA appraisals and guidelines, ensuring your offer stands out and your closing happens on time. We don’t just get your loan to the finish line; we honor your service by providing a seamless, stress-free experience.
FAQ About VA Loans
Eligibility extends to Veterans, active-duty service members, National Guard and Reserve members, and eligible surviving spouses. You generally need a Certificate of Eligibility (COE) to prove your service history.
Yes! VA loans are not a one-time benefit. Once you pay off your existing VA loan (usually by selling the home), you can restore your entitlement and use the program again. In some cases, you can even have two VA loans at once.
Yes. The VA Loan is one of the few true 0% down mortgage programs available. However, you will still need funds for closing costs, though sellers can often help cover these.
This is a one-time fee paid to the Department of Veterans Affairs to help keep the program running for future generations. It ranges from 1.25% to 3.3% of the loan amount, depending on your down payment and whether this is your first time using the benefit. With nothing down, it is 2.15% on a first use and 3.3% after that, and putting money down lowers it. The fee can be rolled into the loan, and it is waived entirely for veterans with a service-connected disability.
No. This is one of the biggest money-saving features of the program. There is no monthly PMI, regardless of how little you put down.
Yes! Treadstone offers a VA Alterations and Repair loan that allows you to finance the purchase of a home plus up to $50,000 in non-structural renovations (like a new roof, windows, or updated kitchen) into one mortgage.
Yes. This means that when you sell your home, a qualified buyer (even a non-veteran) may be able to “take over” your existing mortgage rate and balance. This is a huge selling point in a high-rate environment.
No, you cannot use a VA loan to buy a property solely for investment or vacation purposes. However, you can buy a multi-unit property (up to 4 units), live in one unit, and rent out the others.
