VA Loan Tips For Disabled Veterans - Quicken Loans Zing BlogDid you know that as a disabled veteran, you may be eligible for special considerations when getting a VA loan? It’s true. There are additional benefits available based on your disability status that could help you save quite a bit. Check out some of the benefits on a VA loan that come with your disability status.

The VA Loan Funding Fee Is Waived

If you currently receive disability benefits and have not yet closed on your VA loan, your funding fee is waived and you do not have to pay it. (This is true regardless of your level of disability.) If you close on your loan prior to receiving benefits, the funding fee may be refundable. For example, if a first-time home buyer is purchasing a $200,000 home with a VA loan and qualifies for disability, the 2.15% funding fee will be waived – saving the homeowner $4,300. Once your disability benefits are approved, you must apply in writing to your state’s VA Regional Loan Center to initiate the funding fee refund. If you financed the funding fee, the refund amount will be removed from your principal amount due, and if you paid with cash, the VA will issue you a check.

It is important to remember that if you do not currently receive disability benefits, you must have a pending claim for disability prior to the closing date of the loan. If the application for disability is dated after closing, you may not receive a refund.

Specially Adapted Housing Grants Are Available

A disabled veteran may be able to purchase a home with a fee-free VA loan, but if the home also needs accessibility modifications, the Specially Adapted Housing (SAH) grant and the Special Housing Adaptation (SHA) grant are available to help.

The SAH helps qualified veterans with one of the following:

  • Build a home with special disability-related modifications.
  • Remodel and modify an existing home to meet adapted housing needs.
  • Apply the grant against the principal mortgage balance of an adapted home that’s already been purchased without VA grant assistance.

The SHA helps qualified veterans with one of the following:

  • Adapt an existing home that is already owned by the veteran.
  • Adapt a home that the veteran intends to purchase.
  • Help a veteran purchase a home that has already been adapted.

It’s important to note that if you’re considering a grant, the maximum amount allowed for the SAH is $64,960/yr. For the SHA, the maximum amount per year is $12,992. Additionally, veterans must have their disability benefits approved prior to applying for housing grants.

 

There Are Tax Credits and Exemptions with Homeownership

Once you use your VA loan benefit to buy a new home, you’re eligible for some very useful tax credits and exemptions that could help quite a bit. The Disabled Veterans Property Tax Exemption can help reduce the amount a disabled veteran pays per year in taxes. The amount varies by state, so it’s important to check with your local VA office to find out about your state-specific benefit. Or you can check online at the VA’s eBenefits portal “Benefits by State.” For example, some states offer a 100% tax exemption to all veterans, while others restrict it to 100% disabled veterans.

With a VA loan, you may also be eligible for a Mortgage Credit Certificate (MCC). The MCC is issued on the state level that allows you to claim a tax credit for a portion of the mortgage interest paid per tax year. The credit amount is determined on the state level, but is definitely a benefit worth taking advantage of.

Disability Payments Can Help You Get a VA Loan

If you’re currently receiving disability compensation from the VA, it can be counted as income, which, in turn, helps you meet VA loan income requirements. To be eligible for a VA loan, income must meet three standards – it must be stable, reliable and expected to continue. The key factor in using disability pension toward a VA loan is that your payments are likely to continue.

VA loans are in place to help veterans of the armed forces, so make sure to take advantage of these benefits if you qualify. Do you have any questions about these benefits? Ask in the comments below!

 

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This Post Has 176 Comments

  1. I had a VA loan 10 years ago that went into foreclosure. The foreclosure ended up being an illegal foreclosure and several banks such and BofA, Wells Fargo, JP Morgan, settled and had to pay veterans back for the foreclosure. My question is would that be grounds to request full reinstatement of your VA loan eligibility?

    1. Hi Luis:

      Unfortunately, I think that’s more of a question for the VA. I would start by contacting your Regional Loan Center in your area and going from there. I hope this helps!

      Thanks,
      Kevin Graham

  2. I am 60% disabled and it is my only income. Would I qualify for a loan? I have excellent credit (over 800) and zero debt. I would be able to put down 20% if needed.

    1. I can’t tell you whether you would or wouldn’t qualify on the blog. That depends on a variety of factors. What we can do is make sure we look into all your options. With that in mind, it would be best to start by talking to one of our Home Loan Experts by calling (888) 980-6716. Hope this helps!

      Thanks,
      Kevin Graham

  3. Hi,
    I am helping my dad who is a disabled veteran. He is currently living in a house out in the country in a town where there isn’t even a gas station and doctors and facilities are about 25-30 minutes away. So he is getting ready to list his house but wants to know if he can pre-qualify/get pre-approved for a VA home mortgage loan to make an offer on another place in town when he gets an offer that he can accept on his place. Is there something out there that can work with him? He currently owes $115,000 on his home now but the house will be listed for around $230,000 so after all is paid off, commissions, etc…he would be putting around $60,000+ down on his new place that would have a listing price of around $125,000 or so. Is there a program or something he can do for that? He does not know his credit score but believes he is above that 620 mark and should be good….

    Thanks

    1. Hi Becky:

      You can certainly get a preapproval on a VA home loan. If you want to have your father go ahead and reach out to us by calling (888) 980-6716, one of our Home Loan Experts can absolutely walk him through the process and go over his options. Have a great day!

      Thanks,
      Kevin Graham

  4. I am a disabled veteran…with a school loan that is in rehabilitation have paid 5 payments. Also owe some back taxes which i have been making monthly payments still owe around 7 thousand credit scores above 620…would I have problems getting a loan

    1. Hi Patsy:

      We can certainly look into your options, but your situation is too complex for me to give any kind of guidance here. I suggest you speak with one of our Home Loan Experts. They’ll be able to fully analyze your financial profile and give you advice on next steps. You can get in touch with them by filling out this form or calling (888) 980-6716. Thank you very much for your service!

      Thanks,
      Kevin Graham

  5. i AM TRYING TO BUILD MY CREDIT BACK TO A RESPECTABLE SCORE. THE BIGGEST THING TO HOLD IT DOWN WAS UNPAID CHILD SUPPORT. HERE IS THE PROBLEM, IT IS PAID., HAS BEEN PAID ,.AND HAS NEVER BEEN LATE. SHE DID SOME CREATIVE BOOK KEEPING AND I ONLY RECENTLY FOUND OUT.i AM HAVING A DIFFICULT TIME GETTING THAT OFF MY CREDIT SCORE INFO, SO IT SHOWS UP IN COLLECTIONS, HOLDING MY SCORE BELOW 620. i AM NOW AND HAVE BEEN READY TO BY A HOME .BUT………. I AM A 100% TOTAL AND PERM DISABLED VET. CAN YOU HELP ME WITH THIS ISSUE.

    1. Hi Doug:

      Thank you for your service. Every situation is different, but I’m going to recommend two things. You can get a look at your credit score our friends at QLCredit. You can also get tips from here on how to improve your score. Also, if you have any way of documenting that the support payments were made, you may be able to get the derogatory marks removed from your report by going to the credit bureaus. One of our home loan experts may be able to look into your situation and offer additional advice if you give us a call at (888) 980-6716. Hope this helps!

      Thanks,
      Kevin Graham

  6. Hello Mr Graham,

    I have a large tax lein on my credit, can I still get a VA loan? I have 734 credit but the tax lein shows up. I have spoken with the IRS and they have reviewed by account and concluded that I have enough income to support my self/family, but not enough for them to levy or come after, is there a solution for me??

    Thanks, George

    1. Hi George:

      In most cases, liens are required to be paid off prior to or at close. We might be able to help you with an FHA loan, but you do have to be on a repayment plan at the very least. It doesn’t sound like that’s the situation at this point. I’m sorry we can’t help you at this time, but hopefully, this lets you know where you stand.

      Thanks,
      Kevin Graham

  7. I’m looking for a loan to buy a pool for my backyard. I’m 100% disabled veteran an need water to help my spine. I suffer from PTSD, MST hepertention and can not stand to be around people I don’t know it scares me into a panic. So please help.

    1. Hi Cynthia:

      Thank you for your service. In terms of this grant program for disabled veterans, you really need to start with the VA and go from there. They determine the qualifications on those grants. I recommend getting started with your VA Regional Loan Center in your area. I wish you good luck and I hope this helps!

      Thanks,
      Kevin Graham

  8. Is there a definition of what is considered a special adaptation for the house? For example, part of my rehab for a wounded shoulder is swimming. Can it be used to purchase a pool?

    Robert

    1. Hi Robert:

      That’s something you would have to probably ask the VA. I’m not sure if the disability would have to be permanent in order to get the grant. My thought is that the worst they can do is say no.

      Thanks,
      Kevin Graham

  9. Hi,
    We tried getting refinanced through Rocket, but it didn’t work out. Then, we tried through Loan Depot, and because of the appraisal, they said that we would have to come to the table with $40,000. Now, we’re working with Allied Bank, and I think it’s going to go through, but on our current mortgage, we have a balloon payment due on 1/6/2017. That’s just a couple days from now. What should I do if the refi takes longer. I have spoken with the mortgage company, but they won’t give us an extension.

    1. Hi Angelia:

      I’m sorry to hear it didn’t work out, but I’m going to do my best to help you right now. Typically, there’s a grace period when any mortgage payment is due before it’s considered late. The industry standard is 15 days, but the length of your grace period would be spelled out in the original loan documents for the mortgage you’ll be making the balloon payment on. I would see if you get one and find out exactly how long you have. You should also make the lender for the refinance aware that you have this timeline. They may be able to move things along.

      Thanks,
      Kevin Graham

    1. I can help you get started! If you want to share some basic information about your income, assets and credit online, we can get you a preapproval or full refinance approval in minutes through Rocket Mortgage. Otherwise, one of our Home Loan Experts will be happy to reach out to you at (888) 728-4702. Hope this helps!

      Thanks,
      Kevin Graham

  10. I am a 100% disabled veteran with a 717 credit score. I am receiving benefits due to mst secondary to ptsd that happened in the navy and this affected my performance significantly but they gave me an honorable discharge then stated that I was a burden to command due to substandard performance how can I get a va home loan

  11. I am 100% service connected due to mst secondary to ptsd which took place in the navy and this affected my performance significantly, but they gave me an honorable discharge, but, yet said I was a burden to command due to substandard performance when in fact it was due to the mst military sexual trauma

  12. I am 100% Service Connected disabled Veteran who is married. We have a combined income of Approx.. $90,000 . We currently have a mortgage on a house valued at $200,000. There is $84,000 left on this loan. It is at 4% with 9 years left on the balance. I would like to refinance this at a lower rate. Our combined credit score is around 700.
    I would appreciate any information.

    Thank You.

  13. Hi, I’m 90% disabled and about to be 100%. My credit is in the mid 500 and only because my ex wife destroyed my credit when i was down range. I cant seem to find any options from anyone at the VA. Im stuck living with my parents and need some tips on anything i can do to get approved for a VA loan. I have already went through Camden Credit services to get my credit from 4’s to mid 5’s. Can somebody please help me out with getting approved? Don’t know if it will help being 90% disabled and a single father. Thanks alot all who help.

    1. Hi James:

      I can tell you that we require a credit score of at least 620 to qualify for a VA loan. However, if you speak to one of our Home Loan Experts, we may be able to look further into your credit history and determine the best way for you to proceed. You can get in touch with them by filling out this form or calling (888) 728-4702. In the meantime, you can check out this post on tips to build your score up. QLCredit is a credit monitoring service that might be useful to help you track your progress. Good luck!

      Thanks,
      Kevin Graham

  14. I am a 100% disabled veteran trying to start the process in buying a home loan and am having difficulty finding lenders that understand the VA HOME LOAN benefits for disabled veterans.
    I have a 740 credit score. I’m looking to purchase a $315,000 home. I have read that I should be eligible to have the lending fees waived, as well as not having to have private Home Owners insurance and the Disabled Veterans Property tax exemption.
    Are those all things I have to pay upfront and then get reimbursed for?? If so how do I get reimbursed for them.
    I’m also trying to figure out how much my monthly payments would be.
    Any Help would be appreciated.

    1. Hi Carus:

      I don’t know about the other two benefits for sure, but with the ability to have the fee waived, that’s automatic as long as you’re already receiving disability benefits. If you’ve been approved for benefits, but you haven’t started receiving them yet, that’s when you could apply for a refund after the fact. The other two benefits are either handled by the VA itself or the county you would be paying property taxes to.

      Thanks,
      Kevin Graham

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