The Department of Veteran Affairs is making it easier for veterans to qualify for post-traumatic stress disorder (PSTD). In a new policy that takes effect on Tuesday, noncombat veterans no longer need to provide incident reports, statements from their peers or other evidence in an attempt to prove that they were traumatized by a specific event. According to Rep. John Hall (D-N.Y.), the VA will now “presume that veterans are telling the truth.”
Additionally, veterans who may not be able to relate their trauma to a specific event may still be able to qualify. Under the new rule, if a VA psychiatrist diagnoses a veteran with PTSD, they may be eligible for benefits without additional time-consuming qualification requirements.
What does this mean for veterans and their VA loans?
Veterans who were denied PTSD benefits under the old rules are encouraged to reapply. Anyone who qualifies for PTSD benefits under the new rule, not only will receive retroactive benefits from the date they originally applied, but veteran disability compensation can help you get approved for a VA loan.
Also eligible to receive a funding fee exemption are qualified surviving spouses and active-duty service members who have received a Purple Heart.
Most importantly, those receiving disability in any form can qualify for a VA loan with no funding fee. The VA loan funding fee can be up to 3% of the total loan amount. On a $200,000 loan, the funding fee could be as much as $6,000. Since most people roll the funding fee into their loan, the absence of this fee can reduce the total loan amount and the monthly payment.
The new qualification criteria will hopefully help the many service men and women who would otherwise go without assistance, both psychologically and financially.
If so, subscribe now for tips on home, money, and life delivered straight to your inbox.