For purchase and construction loans with less than 5% down, the current schedule is generally 2.15% for first use and 3.30% after first use. Lower percentages apply with at least 5% or 10% down. Verify the current schedule and exemption status before closing.
What Michigan borrowers should know
The VA funding fee is a one-time program charge on many VA loans. It can often be financed, and qualifying borrowers may be exempt. The details should be confirmed against the current VA guidance, the lender's requirements and the facts of the transaction.
Certain borrowers receiving qualifying service-connected disability compensation and some surviving spouses may be exempt.
Rolling the fee into the loan reduces upfront cash but increases the balance and total interest.
A later disability award with an effective date before closing may create refund eligibility under VA rules.
Build the complete payment
A useful comparison includes principal and interest, property taxes, homeowners insurance, association dues when applicable, the VA funding fee, lender charges and the cash you want to keep after closing. Michigan taxes can vary significantly between municipalities, so an online estimate based only on the listing is not enough.
- Compare payment, upfront cost and long-term cost.
- Verify COE, income, assets and property details before relying on an answer.
- Ask which requirement comes from VA and which is a lender overlay.
Turn the guide into an offer strategy
Once the financing works on paper, connect it to the purchase agreement. The preapproval, verified entitlement, appraisal plan, requested seller credit, closing timeline and lender communication all affect how a listing agent evaluates a VA offer.
Mike can review the scenario directly, compare available wholesale VA options and coordinate with the buyer's Realtor. The objective is a clear financing plan that still works when the appraisal, title work and final figures arrive.
Primary VA resources
Program rules change. Verify current information with the official VA home-loan portal, the VA funding-fee and closing-cost guide, and the VA Lenders Handbook.
Frequently asked questions
Does VA approve the borrower or the lender?
VA establishes the guaranty program, but a private lender reviews credit, income, assets, entitlement and the property. Lender requirements can differ.
Should I compare more than one VA lender?
Yes. Rate, points, lender fees, credits, overlays and service can vary. Compare official Loan Estimates for the same loan type and lock period.