Michigan VA Loan Requirements 2026
This guide to Michigan VA loan requirements covers benefits for Michigan veterans and active-duty service members — no down payment, no PMI, competitive rates, and how Michigan’s veteran population uses VA financing in Detroit, Grand Rapids, and beyond.
VA Loan Eligibility
| Service Category | Minimum Service Requirement |
|---|---|
| Active duty (wartime) | 90 continuous days |
| Active duty (peacetime) | 181 continuous days |
| National Guard / Reserves | 6 years, or 90 days active duty under Title 10 |
| Surviving spouse | Spouse of veteran who died in service or from service-connected disability |
Michigan National Guard members qualify. Michigan Army and Air National Guard members who have completed 6 years of satisfactory service, or have been activated under federal Title 10 orders for at least 90 days, are eligible for VA loan benefits. Active duty and Guard personnel connected to Selfridge Air National Guard Base (Harrison Township) qualify immediately upon meeting the active duty service requirement.
VA Loan Benefits in Michigan
Michigan has a substantial veteran population, including communities near Selfridge Air National Guard Base and other Michigan Guard and Reserve installations. VA loans are widely used and accepted throughout Michigan’s housing markets.
- No down payment required — 100% financing with full entitlement
- No private mortgage insurance (PMI) — Saves significantly on Michigan’s typical home prices
- No VA loan limit with full entitlement — Purchase any-priced home with zero down
- No separate mortgage recording tax — Michigan charges only flat, per-document recording fees, not a percentage-based recording tax
- Competitive rates — Typically 0.25%–0.50% below conventional rates
Michigan VA Loan Requirements Overview
| Requirement | VA Standard | Notes |
|---|---|---|
| Certificate of Eligibility (COE) | Required | Lender can obtain on your behalf in most cases |
| Credit score | No VA minimum | Most Michigan lenders require 580–620+ |
| Debt-to-income ratio | VA guideline: 41%; lenders may approve higher | Residual income also evaluated |
| Primary residence | Required — VA is for owner-occupied only | Must occupy within 60 days of closing |
| VA appraisal | Required — separate from inspection | VA appraiser assigned by VA regional office |
| Property type | 1–4 family, approved condos, manufactured homes on owned land | Manufactured homes must be on owned land, not leased |
VA Funding Fee
| Down Payment | First Use | Subsequent Use |
|---|---|---|
| 0% (no down payment) | 2.15% | 3.30% |
| 5% or more | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
Veterans with VA disability ratings, surviving spouses receiving DIC, and active-duty Purple Heart recipients are exempt from the funding fee. Cash-out refinance funding fees are 2.15% for first use and 3.30% for subsequent use; IRRRLs carry a 0.5% fee. Confirm current rates at the VA’s official funding fee page.
Pairing VA with MSHDA MI 10K DPA
Michigan does not have a state-run veteran-only home loan program, but eligible veterans may be able to combine a VA loan with MSHDA’s MI 10K DPA to help cover closing costs — even though VA loans already require no down payment.
| Feature | Standalone VA Loan | VA + MI 10K DPA |
|---|---|---|
| Down payment | 0% with full entitlement | 0% |
| Closing cost help | Seller/lender credits only | MI 10K DPA (up to $10,000) may cover closing costs, if your lender can structure it this way |
| Min credit score | Lender overlay, typically 580–620 | 640 (MSHDA program minimum) |
| Structure | N/A | 0% interest, deferred second mortgage |
MSHDA’s public program materials do not explicitly break out MI Home Loan and MI 10K DPA eligibility by first-mortgage loan type. Ask an MSHDA-participating lender directly whether combining VA financing with MI 10K DPA is possible for your specific transaction — it can be useful for veterans who want to preserve cash reserves even without needing a down payment. Confirm current terms at michigan.gov/mshda.
