Current VA guidelines, updated from one source.
What follows is VA’s own rulebook reduced to the handful of numbers that decide a file, pulled from Lendmire’s single guideline source and refreshed on this page whenever VA or the wholesale overlays move: leverage with full entitlement, the funding fee by use and down payment, the ratio guideline, and the residual-income table for this state’s VA region.
100% financing with full entitlement
100% financing is available with full entitlement, so the buyer brings 0% toward the price; closing costs are separate and can be paid by the seller, with VA’s cap applying to concessions beyond them. A larger down payment lowers the funding fee tier, as the ladder shows.
No monthly premium, no upfront premium
No mortgage insurance, monthly or upfront, at any loan-to-value: the guaranty stands in for it. That is the single largest difference between a VA payment and an FHA or low-down-payment conventional payment on the same price.
First use; 3.3% after first use; exempt for many disabled veterans
2.15% of the loan on first use and 3.3% after, both lower with five or ten percent down; the fee can be rolled into the loan or paid at closing, and VA waives it for disabled veterans receiving compensation, surviving spouses receiving DIC, and active-duty Purple Heart recipients.
Residual income decides the file
Two tests, one guideline: the total-debt ratio is measured against 41%, and residual income is measured against the Midwest table below for the household’s size. VA tells lenders the residual-income test carries more weight, which is why a modest ratio does not approve a thin budget.
| Loan type | Use | Down payment | Fee |
|---|---|---|---|
| Purchase or construction | First use | less than 5% down | 2.15% |
| Purchase or construction | First use | 5% to 9.99% down | 1.5% |
| Purchase or construction | First use | 10% or more down | 1.25% |
| Purchase or construction | After first use | less than 5% down | 3.3% |
| Purchase or construction | After first use | 5% to 9.99% down | 1.5% |
| Purchase or construction | After first use | 10% or more down | 1.25% |
| Cash-out refinance | First use | Any | 2.15% |
| Cash-out refinance | After first use | Any | 3.3% |
| IRRRL | Any | Any | 0.5% |
| Manufactured home (not permanently affixed) | Any | Any | 1% |
| Loan assumption | Any | Any | 0.5% |
| Vendee loan | Any | Any | 2.25% |
| Family size | Residual income |
|---|---|
| 1 | $441 |
| 2 | $738 |
| 3 | $889 |
| 4 | $1,003 |
| 5 | $1,039 |
| Each additional member, up to seven | + $80 |
Exempt from the funding fee: veterans receiving VA compensation for a service-connected disability, those eligible for it but receiving retirement or active-duty pay instead, surviving spouses receiving Dependency and Indemnity Compensation, service members with a pre-discharge claim rating, and active-duty service members who have received the Purple Heart. VA sets no minimum credit score; the wholesale programs behind these pages start at a 580 decision score and serve loan amounts up to $4,000,000, including loans above the conforming limit with full entitlement.
Refinances: cash-out to 100% loan-to-value after seasoning of 210 days and six payments with a net tangible benefit; rate-reduction refinances of an existing VA loan at a 0.5% fee without a VA appraisal. Current VA snapshot · updated October 1, 2026 · owner-occupied principal residences, one to four units · no VA loan limit with full entitlement · loans are assumable · no prepayment penalty · Lendmire is not affiliated with the Department of Veterans Affairs.
Not a commitment to lend, not an offer of credit, not a quote. The figures shown are current VA program parameters and wholesale overlays that change without notice and apply only after full underwriting of the borrower, the entitlement, and the property; the wholesale credit floor and maximum loan amount are lender overlays, not VA rules. Lendmire is a mortgage broker licensed in sixteen states for consumer mortgages, never the lender, and is not affiliated with the Department of Veterans Affairs. NMLS #2371349.
What a VA loan is — and how the file is qualified.
To follow a Traverse City VA file, follow four things in order: the guaranty, the eligibility and entitlement that unlock it, the funding fee that funds it, and the residual-income standard that qualifies it. Each rule below comes with the reason behind it.
For the program overview, see Lendmire’s VA loan program, or the statewide guide at VA Loans in Michigan; to request a Certificate of Eligibility, see VA.gov.
The guaranty replaces the down payment
VA backs a quarter of the loan for a borrower with full entitlement, which gives the lender the same protection a sizable down payment would. That is why a Traverse City purchase can close with nothing down and no mortgage insurance, and why there is no VA loan limit when entitlement is full: the backing scales with the loan.
Eligibility, entitlement, and the COE
Eligibility comes from service: a minimum period of active duty, a qualifying period in the National Guard or Reserve, or status as an eligible surviving spouse, with a character of discharge VA accepts. VA confirms it on the Certificate of Eligibility, which a Traverse City buyer can request online, through the lender, or by mail.
The funding fee, and who is exempt
The fee scales with use and with the down payment: a first use with nothing down pays the base tier, a later use pays more, and five or ten percent down lowers either. Financed, it adds to the loan balance rather than the cash to close, which is the usual choice on a Traverse City purchase; a veteran receiving, or eligible to receive, compensation for a service-connected disability pays none of it.
Residual income over ratios
VA qualifies a household on what is left, not only on what is owed: residual income is the monthly income remaining after the proposed housing payment, other debts, taxes, and an allowance for maintenance and utilities, measured against a table by family size and region. A Traverse City family must meet the table for its size.
A lender runs exactly this math on a Traverse City file, with one refinement the page cannot make: underwriting also subtracts taxes, maintenance, and utilities before measuring residual income, so the rough residual here will read higher than the lender’s. The price, the fee tier, and the locked rate are the moving parts.
Where Traverse City’s veterans and service members buy — and how VA fits.
Three Census figures frame every Traverse City VA file. Ownership says how much of the market the benefit can reach, the median value says what a nothing-down loan typically comes to, and household income says how much residual income is left after that payment.
Read the figures as backdrop. Income is the residual-income input, value is the loan and the fee, and family size is the row in VA’s table. The Census describes the first two for the market; the file supplies all three for the borrower.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Distinct Traverse City neighborhoods, distinct VA files.
A Traverse City condominium, a half-century-old family home, and a new subdivision house are three different VA files: different project approvals, different property findings, different funding fees in dollars. The six submarkets below show the range.
Service members and the occupancy rule
Where Traverse City sits near a base or a reserve center, VA files cluster in the neighborhoods service members choose, and the occupancy rule bends there in defined ways: a spouse can occupy for a member on orders, and a veteran may later rent the home out after living in it. The median owner-occupied home value in Traverse City runs near $415,400 on the latest Census estimate.
Newer infill and recent construction
New rows and recent infill in Traverse City tend to appraise without findings, which moves the question to price. With full entitlement there is no loan limit, so a contract above the county conforming figure is still a nothing-down VA purchase, tested on residual income at that payment. Traverse City is home to about 16K people.
Established close-in neighborhoods
The Traverse City blocks nearest the core carry the oldest houses, and VA’s appraiser reads them for condition as well as price: paint, roof, railings, systems. Findings become required repairs, and sellers usually complete them before closing. On a home at Traverse City’s median value, a VA purchase with full entitlement needs no down payment at all — the funding fee on the full $415,400 is the program’s cost, and it can be financed.
Higher-value homes
On Traverse City’s higher-value homes the VA loan’s reach shows: with full entitlement there is no down payment above the conforming limit, up to the maximum loan amount shown in the guidelines above. The credit floor is the lender overlay, and the file is qualified on residual income. Median household income in Traverse City sits near $74,087 on the latest Census estimate.
Two-to-four-unit homes
Traverse City duplexes and small apartment houses are VA purchases with nothing down when the veteran occupies one unit. VA counts rent from the other units under its own rules, which can require landlord experience or reserves. Roughly 4,578 Traverse City households own their homes on the latest Census estimate — 64% of all households, the pool a VA purchase joins.
Condominiums and townhomes
Close-in Traverse City condominiums suit the benefit well: nothing down, no insurance line, and a project review that runs through VA’s approved-project list. The dues go into the residual-income math, and the appraisal covers the project along with the unit. About 36% of Traverse City’s households rent — roughly 2,613 renter households on the latest Census estimate.
The rules do not change with the street. Every Traverse City file is checked the same way: price against the Notice of Value, property against VA’s minimum property requirements, condominium against VA’s approval list, and borrower against entitlement, the ratio guideline, and residual income. Second homes and rentals are not VA purchases.
Four ways Traverse City veterans put the VA benefit to work.
Traverse City veterans use VA for a handful of reasons that repeat, from the purchase with nothing down to the rate-reduction refinance of an existing VA loan, and the cards below take up the ones that come up most.
Buy a small multi-unit home and live in one unit
A Traverse City duplex, triplex, or fourplex becomes a VA purchase the moment the buyer commits to occupying one unit. The guaranty covers the loan the same way it covers a house, and the other units’ rent is documented toward the ratios and residual income the way VA permits.
Buy a first home with nothing down
For a first purchase in Traverse City, VA pairs no down payment with no mortgage insurance and a residual-income test that reads the whole household budget; the file closes on the certificate, the appraisal, the income, and the funding fee tier.
Buy a condominium in an approved project
One extra step separates a Traverse City condominium file from a house file: the project review against VA’s list. Once the project clears, the leverage, the fee, and the absence of mortgage insurance are exactly what they would be on a house.
Refinance an existing VA loan
An existing VA loan in Traverse City can be refinanced on its own record: the IRRRL skips the appraisal and most of the documentation, carries the smallest funding fee in the program, and must leave the borrower better off under VA’s net tangible benefit rules.
Estimate the VA payment on a Traverse City price before requesting a quote.
Before you ask for a quote, size the payment yourself: the Traverse City price, the fee tier, the term, the benchmark rate, and the escrows go in, and the funding fee table and the residual-income figures come from the same guideline source as the block above. The result is an estimate, and the rate is a published market average, not an offer.
Traverse City VA payment estimate
Defaults describe Traverse City, not your purchase: put in the real price, the real fee tier, and the real escrows.
Editable benchmark: 7.28% as of October 1, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a VA loan quote.
Illustrative starting assumptions: a $415,000 price near Traverse City’s median owner-occupied home value, no down payment with full entitlement, a first-use funding fee financed into the loan, a thirty-year term at the current Freddie Mac benchmark, property taxes and insurance estimated for Michigan (U.S. Census Bureau). Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not a VA loan quote; your rate is set by the lender at lock. The funding fee follows VA’s published table for the use and down payment entered; the residual-income figure is VA’s guideline for the region and family size, and the rough residual shown subtracts only the housing payment and the debts entered, while VA also deducts taxes, maintenance and utilities. Taxes, insurance and dues are editable estimates; closing costs are not included. Licensed in sixteen states for consumer mortgages. Lendmire is not affiliated with or acting on behalf of the Department of Veterans Affairs.
Same veteran, three very different closings.
The alternatives put VA’s cost in perspective: FHA charges a premium every month, conventional charges one until equity arrives, VA charges a fee once. The comparison below is written for a Traverse City buyer weighing all three.
VA, FHA, or conventional.
No down payment with full entitlement, no mortgage insurance at any leverage, a one-time funding fee that can be financed or waived, residual-income underwriting, no loan limit with full entitlement, and a loan that can be assumed. The cost is the funding fee, and the condition is eligibility.
FHA’s leverage is high and its credit standard is forgiving, but its insurance never comes off a full-leverage thirty-year loan. A Traverse City veteran comparing the two sees the premium line in the FHA payment and nothing in that line on VA. See Lendmire’s FHA loan program.
Conventional financing asks for a down payment and a higher score, in exchange for insurance that cancels and no funding fee. A Traverse City veteran with a large down payment, where the funding fee falls to its lowest tier and conventional insurance falls away, should see both programs run on the same numbers. See Lendmire’s conventional loan program.
VA for the eligible buyer who wants no down payment and no mortgage insurance; FHA for the buyer without eligibility who needs the small investment and the forgiving score; conventional for the buyer with twenty percent down or a strong score who wants cancellable insurance.
What to prepare for a Traverse City scenario review.
Gather these before a Traverse City review: ordinary mortgage documents plus the proof of service that opens the file.
This is a general preparation guide, not a universal checklist. The selected lender may request additional information based on the transaction, the property, entitlement, and the income picture. Nothing here is legal or tax advice.
Local details that can change the loan.
What moves a Traverse City file most often: entitlement, the funding fee and its exemptions, the appraisal and the Notice of Value, the project approval, residual income, seasoning after a credit event, and occupancy.
Use these checks to keep the Traverse City file clean and fundable.
The list is short because the program is: entitlement, the fee, and the property decide most Traverse City files before income is even opened.
- Confirm the entitlement: entitlement is restored once the earlier loan is paid off and the home sold.
- Know the fee: the fee can be financed, paid at closing, or paid by the seller.
- Plan the units: rental income from the other units counts within VA’s rules.
Full or remaining entitlement
Entitlement is full on a first use, and it is restored when an earlier VA loan is paid off and the home sold; it is partial when an earlier VA loan is still outstanding or was lost to foreclosure. A Traverse City buyer with full entitlement has no loan limit; with remaining entitlement, the lender may require a down payment.
The funding fee tier and the exemptions
A subsequent use costs more than a first use, and five or ten percent down lowers either tier; the exemption removes the fee entirely. A Traverse City veteran with a pending disability claim should raise it early, because a rating granted before closing waives the fee and one granted after can bring a refund.
Two- to four-unit homes and rental income
A Traverse City fourplex with nothing down is possible under the program; the lender documents the rents, applies VA’s rules for counting them, and checks the property against VA’s requirements unit by unit. A loan officer runs the residual-income test before the offer.
Credit, seasoning, and the prior VA loan
Each waiting period is VA’s own, and the recent housing record carries the most weight. A foreclosure on an earlier VA loan adds a second question for a Traverse City veteran: the entitlement used on that loan stays used until the loss is repaid, leaving remaining entitlement for the new purchase.
The VA appraisal and the Notice of Value
When the value comes in under the contract price on a Traverse City file, VA’s process gives the appraiser a chance to weigh additional sales before the Notice of Value is final, and the escape clause lets the buyer walk away with the deposit if the gap cannot be closed. Repairs the appraiser requires are usually completed before closing.
From a Traverse City Certificate of Eligibility to keys in hand.
Underneath, the Traverse City process is any mortgage process; on top sit VA’s checks: the certificate, the property requirements, the project approval where it applies, and the residual-income test. Each step below says what happens and what the buyer does.
COE and pre-approval
A Traverse City pre-approval is a sizing exercise: the certificate, the income, the family size, the funding fee tier, and the price. The loan officer confirms eligibility and entitlement against the program rules and puts the pre-approval in writing for the offer.
Contract and appraisal
The Traverse City contract sets the price and the concessions; the appraisal sets the value and the condition. Both feed the loan amount, and the lender confirms the project approval and the wood-destroying insect inspection where VA requires one for the state before underwriting begins.
Underwriting
Underwriting on a Traverse City VA file reads the whole picture: the entitlement on the certificate, the housing payment history, the seasoning of any derogatory event, and the residual income after VA’s deductions for taxes and upkeep. Conditions are issued, documented, and cleared before the approval is final.
Closing
Closing is where the fee becomes real: financed into the total loan or paid at the table, with the seller’s concessions applied and the fees a veteran may not pay removed from the sheet. The Traverse City buyer takes the keys and VA backs the lender.
A brokerage that puts the benefit to work.
A single lender recommends its own program; a brokerage with several wholesale programs and all three routes can say which one actually costs a Traverse City veteran less, and show the arithmetic.
Three programs, one set of numbers
The comparison printed on this page is run for real on every Traverse City file: VA with the fee financed beside FHA with its premiums beside conventional with private insurance, and the written terms follow from whichever column serves the veteran.
The fee and the entitlement explained before the offer
The fee is the program’s cost and the entitlement is its reach, and Lendmire explains both first rather than last: how much the fee is, whether it is waived or refundable, and what the certificate supports for a Traverse City buyer at the price in hand.
Licensed, consumer-purpose, in writing
Lendmire carries the license for the state the Traverse City home is in, delivers the disclosures a consumer mortgage requires, and commits the terms to paper. The program figures on this page are read from one guideline source built on VA’s published rules.
Trusted by veterans & families alike.
Traverse City VA loan FAQs
What a VA loan is, who is eligible, how the certificate works, what the funding fee costs, and how the loan limit works, answered for Traverse City buyers.
What is a VA loan, and who is it for?
A VA loan is the mortgage an eligible Traverse City buyer should compare first: backed by VA, offered through lenders, written with no down payment and no insurance line, and qualified on residual income rather than ratios alone.
Who is eligible for a VA loan in Traverse City?
Service decides it: a minimum period of active duty, a qualifying period in the Guard or Reserve, or eligible surviving-spouse status, with a character of discharge VA accepts. A Traverse City buyer unsure of the answer can request the certificate from VA.gov or have the lender pull it.
How do I get a Certificate of Eligibility?
Online at VA.gov, through the lender, or by mail. Have the service documents ready: the DD-214 for a veteran, a statement of service for a service member, Guard or Reserve records, or the spouse’s documentation. Some certificates issue instantly and some need VA to review the record.
What is the VA funding fee, and do I have to pay it?
The funding fee is a one-time charge VA collects to fund the guaranty, set as a share of the loan by first or subsequent use and by the down payment, as the snapshot ladder shows. It can be financed, paid at closing, or paid by the seller as a concession. Veterans receiving compensation for a service-connected disability, surviving spouses receiving DIC, Purple Heart recipients on active duty, and service members rated before discharge are exempt.
Is there a VA loan limit in Traverse City?
No limit with full entitlement, which is why a VA jumbo with nothing down exists. Partial entitlement brings the county conforming figure into the math; the loan officer confirms the current figure and the down payment it implies.
What credit score do I need for a VA loan?
VA leaves the credit standard to the lender, and the lender overlay in the snapshot is the floor behind these pages. The file is read as a whole: two years of clean housing payments carry more weight than an old event that has seasoned.
Can the seller pay my closing costs on a VA loan?
Yes. VA allows seller-paid closing costs and caps the broader concessions; it also lists fees a veteran may not pay, which the seller or the lender absorbs. Structured well, cash to close on a Traverse City purchase is modest.
Do I have to live in the home to use a VA loan?
You do, within a reasonable time after closing. The rule has sensible exceptions for military life, and it does not prevent a Traverse City veteran from renting the home out after living in it; the loan stays in place.
What is residual income, and why does it matter?
Residual income is the monthly income left after the proposed housing payment, other debt payments, taxes, and VA’s allowance for maintenance and utilities, and VA requires it to meet a table that varies by region and family size. It is the test VA trusts most, because a household with real room in the budget weathers surprises; a ratio that looks fine can still fail it.
Can I take cash out with a VA refinance?
Yes, up to the leverage in the snapshot, which includes the funding fee, on an owner-occupied principal residence after seasoning of the later of the period and the number of payments shown, with a net tangible benefit and, where the loan refinances an existing VA loan, a recoupment test on the costs. A HELOC that leaves the first mortgage alone is the comparison worth running.
The Traverse City VA file, built on VA’s rules and explained plainly.
Begin with a scenario review: the Certificate of Eligibility, the price, the income, and the household size. A licensed Lendmire loan officer runs VA beside FHA and conventional on the same numbers and puts the terms in writing.
This guide covers Traverse City — for the statewide guidelines, markets, and scenarios, see VA Loans in Michigan, part of Lendmire’s VA loan program.
Nearby markets in Michigan: Petoskey · Mackinac Island · Midland · Muskegon · Norton Shores · Bay City · Saginaw · Grand Rapids
Related programs: Conventional Loans · FHA Loans · Jumbo Loans