Shirley Mueller’s team handles VA construction loans in Michigan. One team works with you from pre-approval through move-in.
Building a new home in Michigan with a VA loan
Michigan Veterans have a lot of room to build. Some want a lot in a growing township outside Grand Rapids or Lansing. Others want acreage near family in the Thumb, or a year-round place in northern Michigan close to the lakes. A VA one-time close construction loan can finance all of these with one closing that covers the land, the build and your permanent mortgage. Eligible Veterans can do it with $0 down on loans up to $1 million.
Shirley's team handles your VA construction loan in Michigan, from pre-approval to the final draw. Early on, the team goes over your lot, your builder and your budget so you know how the program applies to your build.
Where Michigan Veterans are building
Most new-home building happens around the state's job centers. The townships surrounding Grand Rapids, such as Byron Center, Rockford and Allendale, have kept growing for years. So have Lansing-area communities like DeWitt and Grand Ledge, and Livingston County towns between Ann Arbor and Lansing, including Howell, Brighton and Hartland. In Macomb County, growth around Macomb Township and Shelby Township puts Veterans close to Selfridge Air National Guard Base.
Many Michigan Veterans build away from the metro areas. Traverse City, Gaylord, Petoskey and the Houghton Lake area draw people who want four seasons and a lake nearby. In the Upper Peninsula, Marquette and Escanaba are common choices. These areas usually mean more land, longer driveways and a well and septic system instead of city utilities, so plan for that from the start.
Land and lot considerations in Michigan
Land is often where a Michigan build gets complicated. Look at these before you commit to a lot:
- Wells and septic. In rural Michigan, your local health department usually reviews well and septic permits. Soil evaluations or perc tests can decide where the house goes, or whether a lot works at all. Ask the county health department about its process early.
- Frost and foundations. Michigan winters push frost deep into the ground, and your local building department sets the footing depth for your area. Your builder will design the foundation to meet it. Basements are common across much of the state, and some sites need extra drainage work.
- Snow. Lake-effect snow along the western shoreline and in the U.P. affects roof design and how well your road is cleared in winter. Check whether the road to your lot is public and maintained all year.
- Wetlands and shoreline. Lots near lakes, rivers and wetlands can come with extra permits and setbacks. Find out what applies before you close on the land.
- Access and utilities. Confirm legal road access, where power can be brought in, and the cost of running it a long distance.
Already own your land? The VA construction loan can pay off what you owe on the lot at closing, and equity you already have in the land can help your numbers. See building on land you already own. The property also has to meet VA standards when it's finished. Our minimum property requirements checklist covers what the appraiser looks for.
Choosing a licensed Michigan builder
Michigan licenses residential builders through the Department of Licensing and Regulatory Affairs (LARA). According to LARA, a licensed residential builder can contract for a whole new home, but the plumbing, electrical and mechanical work has to be done by contractors licensed in those trades. If your builder operates as a corporation or LLC, the company needs its own license and a qualifying officer who holds an individual license. You can look up any builder's license with LARA before you sign.
A LARA license is the state's requirement. Separately, the lender has to approve your builder before closing, and the home is built under a fixed-price contract. VA construction loans don't allow owner-builders or do-it-yourself work, even if you work in the trades yourself. Read more about what builders need for approval and why you can't act as your own general contractor.
Building permits and inspections come from your city, township or county, and the process differs from one to the next. Your builder normally pulls the permits. Ask how long they usually take in your area.
How the loan fits a Michigan build
A VA one-time close construction loan rolls the lot, the construction and the permanent mortgage into one loan with one closing. Expect about 2–3 months to close, then a 12-month construction period. You make no mortgage payments while the home is built. The interest reserve and construction management fee are built into the loan amount and paid by the builder, as VA requires. Learn more about how the interest reserve works.
VA construction loans start at a 620 minimum credit score, and larger loan amounts may need a higher score. Loans over $1 million, up to a $2 million maximum, need 5% down. Your permanent loan is a 15- or 30-year fixed rate. For Michigan's seasons, that 12-month construction period helps. It gives your builder room to work around winter, frozen ground and spring thaw without pressure to rush the foundation.
Michigan's disabled veterans property tax exemption
Michigan offers a full property tax exemption on the homestead of qualifying disabled Veterans under MCL 211.7b. According to the State Tax Commission, you may qualify if you are a Michigan resident with an honorable discharge and one of the following applies:
- VA has rated you permanently and totally disabled from service and entitled to benefits at the 100% rate.
- VA has rated you individually unemployable.
- You received, or have received, VA specially adapted housing assistance.
An unremarried surviving spouse may also qualify. You apply on Form 5107 with your local assessor (your city or township, not the state), with your VA documentation. Under current law, once approved, the exemption stays in place without reapplying each year until you no longer qualify or move. When you build, ask your assessor how the exemption applies to your new home and the year it's completed. For other states, see our property tax exemption by state guide.
Military installations in Michigan
Michigan's military presence includes Selfridge Air National Guard Base in Macomb County, Camp Grayling in the northern Lower Peninsula, the Detroit Arsenal in Warren, and Battle Creek Air National Guard Base. Guard members and reservists who meet VA service requirements can be eligible for VA home loan benefits. Check VA construction loan eligibility to see where you stand.
Getting started from Michigan
Apply online in about 10 minutes, and it's only a soft credit pull. Shirley's team, specializing in VA home loans for over 20 years, will review your application, explain how the program fits your plans and handle the loan from there. Call 888-788-4977 or email shirley.mueller@ccm.com. Not in Michigan? Browse the state listing.
Michigan VA construction loan FAQs
Can I get a VA construction loan in Michigan?
Yes. Shirley's team can talk through your plans, help you get ready, take your application and see the loan through closing.
Does my Michigan builder need a license?
Yes. Michigan licenses residential builders through LARA, and plumbing, electrical and mechanical work must be done by trade-licensed contractors. Your builder must also be approved by the lender before closing.
Can I build in northern Michigan or the Upper Peninsula with a VA loan?
Yes, as long as it will be your primary residence and the property meets VA requirements. A vacation or seasonal home doesn't qualify. Rural lots usually need a well and septic system, so plan for those permits early.
Will Michigan winters affect my 12-month build?
Weather is part of construction planning everywhere in Michigan. The 12-month construction period gives your builder time to work around winter and spring thaw. Talk with your builder about scheduling the foundation work.
Do I have to reapply every year for Michigan's disabled veterans exemption?
Under current Michigan law, an approved exemption stays in effect until it is rescinded or revoked, so you don't need to reapply each year. Confirm the details with your local assessor when you file Form 5107.