VA Loans

The goal of the VA Loan program is to assist American veterans with homeownership. The U.S. Department of Veterans Affairs (VA) guarantees home loans made by approved lenders making it possible for Michigan veterans to receive very favorable loan terms and rates when compared to other alternative mortgages. At AIM Financial, we are proud to provide Michigan veterans with competitive rates and terms on VA loans throughout Grand Rapids, Allegan, Kentwood, and Wyoming.

Most veterans, military, and spouses of deceased military members are eligible to apply for a VA loan however eligibility goes into effect at different times depending on service status. Active-duty members will need to complete roughly 6 months of service before becoming eligible. Members of the National Guard and reservists will reach eligibility after 6 years although if called to active duty, they will become eligible after only 181 days. Anyone who intends to apply for a VA loan will need to acquire a Certificate of Eligibility (COE). It is ideal to obtain your COE as early as possible to avoid delays in the application process. If you do not have your COE, we can certainly help you with this.

Benefits of a VA Loan:

  • 100% financing (appraised value cannot exceed sale price)
  • VA funding fees can be financed with the loan (up to 3.3%)
  • No private mortgage insurance (PMI)
  • No pre-payment penalty
  • Closing costs are limited by VA regulation and may be paid by the seller
  • Up to $417,000 loan amount (certain counties may be higher)

VA Loan Limits

County Single-Family Two-Family Three-Family Four-Family
Allegan $421,100 $543,000 $656,350 $815,650
Kent $421,100 $543,000 $656,350 $815,650

VA loans can be used for the purchase of a new home and those with a current VA loan can take advantage of refinancing options. Cash-Out Refinance Loans as well as Interest Rate Reduction Refinance Loans (IRRRL) are available to meet the various needs of current Michigan homeowners.

  • Purchase Loans – Provides veterans with competitive mortgage options for the purchase of a new home.
  • Cash-Out Refinance Loans – Cash-Out Refinance Loans allow current homeowners to utilize equity in their homes to obtain extra cash which can be used for various expenses such as home improvements, remodeling, or high-interest debt consolidation.
  • Interest Rate Reduction Refinance Loan – Veterans can take advantage of an IRRRL to improve the interest rate on their current VA loan. This is also referred to as a VA Streamline Refinance Loan.

A score of around 620 is generally needed to qualify for a VA loan but the VA does not actually set a minimum requirement themselves. Since there is not a strict minimum requirement, lenders may offer a bit of flexibility when it comes to credit scores, but lower scores may bring higher interest rates. You will need to supply W2 statements and pay stubs in order to verify your income. Documentation of assets such as checking accounts, savings accounts, and other financial investments will also need to be submitted for review during the application process.

Whether you are a located in Grand Rapids, Allegan, Kentwood, and Wyoming, our VA loan experts at AIM Financial can help you achieve your homeownership goals. For more information on Michigan VA loans or to begin the prequalification process, contact us today.