1. Home
  2. Blog
  3. Home Buying, Home Buying/Selling, Refinance Mortgage, Refinancing, VA
  4. Top 2 VA Loan Tips for Disabled Veterans
Top 2 VA Loan Tips for Disabled=

Disclaimer: Beginning January 1, 2020, the VA funding fee will be changing to a range of 1.4% – 3.6% based on factors like your down payment or equity amount, your service status and whether this is a first or subsequent use of a VA loan.

If you’re a disabled veteran thinking about a VA loan you may be wondering how your disability benefits factor into helping you with your loan.  Disability benefit paperwork often takes some time to be processed.  Should you wait until your disability benefits go through to get your VA loan?

The good news is, you don’t have to.

Tip #1: The funding fee can be retroactively removed from your VA loan.

This means that if your benefits are pending, and you want to proceed with your VA loan, the funding fee will initially be rolled into your loan.  Once your disability benefits are approved the VA will refund the funding fee in the form of a principal reduction.  For example, if your funding fee is $3,000, that amount will be added to your loan.  Once your benefits are approved, the $3,000 funding fee will be removed from your principal amount due.

Tip #2: Approved disability pension can help you get approved for a VA loan.

If you’ve already made it through the process and are receiving disability compensation from the VA, the compensation can be counted as income.  This could help people meet the income requirements for a VA loan.  However, this cannot be retroactively applied.  Meaning, you must already be receiving your disability compensation in order for you to claim it as income.  While not necessarily applicable to your mortgage, it’s important to note that the VA will give you your disability benefits from the date of your discharge.  A lot of veterans use that lump sum disability check to pay down their principal if they decide to move forward with their loan before their benefits are approved.

If you’re trying to take advantage of record low mortgage rates and don’t want to risk waiting for what could potentially be months for your benefits to be processed the VA loan can help you achieve your goals.  VA loans have many advantages, especially for disabled veterans.  Talk to a Home Loan Expert about a VA loan today.

This Post Has 7 Comments

  1. I am 100% rated by the VA and receive compensation. Will this count towards my income for the last two years? I have been separated from the army since 2013 and havent had a stable job.

    1. Hi Nick:

      Every situation is different, but I’m going to have someone reach out and help with your questions. Have a good day!

      Kevin Graham

  2. Hi,
    I’m a 100% service connected veteran and separated from the military in 2013. I have not worked since, only attended school with the gi bill.I now want to buy a house in Maryland. Am I eligible since I have no 2 years of stable work? I’m very worried won’t be.

  3. Hi sir I’m a disabled veteran awaiting to be rated service conecte , and social security as well , I would like to buy a one family ranch house in east Elmhurst ny if you can help me with this process thanks

    1. First of all, thank you for your service, Bernardo. I’m going to put you in touch with one of our Client Relations Specialists. They’ll send you an email to get some more details on your situation. Have a nice day!

  4. The author mixes up compensation and pension. These are two distinct issues. Compensation is not taxable. A Pension is. Pension are granted to those individual that meet the following criteria: Pension is available to veterans, surviving spouses and children, if the veteran has qualifying service and there is financial need. Veterans must also have a qualifying disability which need not be service-connected.

    Three pension programs are currently being paid. Only one program is still accepting applications – Improved Disability or Death Pension. Old Law and Section 306 Disability or Death Pensions recipients are protected at the rate they were receiving when their program was superceded by Improved Pension on January 1, 1979.

    Compensation is: This benefit program evaluates disability resulting from all types of diseases and injuries encountered as a result of military service. The degrees of disability that are determined by VA represent, as far as can practicably be determined, the average loss in wages resulting from such diseases and injuries and their complications in civil occupations. Generally, the degrees of disability specified are also designed to compensate for considerable loss of working time from exacerbations or illnesses.

    1. Thanks so much for the feedback, Bob. I got my information from Clayton Closson, a writer here and a disabled veteran. He should have known better! Thanks again.

Leave a Reply

Your email address will not be published. Required fields are marked *