Financially speaking, you should be able to qualify for significant, traditional VA loan financing, and then combine the grant(s) on top of the VA loan benefit. This will create a large budget for the purchase and modification of the home. With our Dreamweaver Home Purchase Process™, the VA loan will typically finance the purchase and all the modifications and improvements. The VA appraisal must demonstrate the value of all the improvements in the total new value of the home. However, in this case, because the granted funds do not have to be repaid, we have the maximum flexibility and ability to apply these funds toward modifications WITHOUT any consideration as to their effect on the actual value or resale value of the home from the VA appraiser’s stand point. We can do things to the home that would never be possible without combining these two programs. That is what is meant by a large budget! This is a VERY POWERFUL marriage of resources and benefits.
Let’s discuss the economics of the qualifying for the VA loan. In general, the Veterans who qualify for these grants are getting tax-free disability payments. It is possible to receive service-connected disability or VA disability compensation and Social Security disability insurance (SSDI) at the same time. When we underwrite the final VA loan financing, we perform what we call a “grossing-up” of the tax-free income payments. In this scenario a VA loan underwriter effectively equates your income to the same income as a working individual, as if taxes were getting deducted from a paycheck. As an example, if you make $3,000 a month in disability income, it can be equated to making $3,750 a month in an underwriting scenario. And if you combine that figure with spousal income or other retirement income, you may qualify for a significant sum of VA loan financing. Your credit profile and other debts will also be considered. Your disability payments are permanent, so you should be able to properly budget your income and expenses to afford truly special results when building out a new custom home.