The VA offers a range of enhanced benefits for disabled Veterans. On top of VA healthcare benefits, Veterans with service-related disabilities are eligible for various home loan perks. Although VA disability rates vary from 10% to 100%, any amount of disability income can be used to qualify toward the purchase of a new home, and fee exemptions can save Veteran borrowers thousands.
VA Home Loan Opportunities for Disabled Veterans
When it comes to determining VA loan eligibility, expanded opportunities are available for disabled Veterans. Those discharged for a service-connected disability typically must meet the service length requirements of 90 days during wartime or 181 days during peacetime. This means that if you’re a disabled Veteran who can meet credit and income qualifications, you can put your VA compensation rates toward a VA home loan.
Funding Fee Exemption
The VA Funding Fee is a one-time charge that the VA uses to cover the costs associated with guaranteeing home loans. This fee is expressed as a percentage of the loan amount and can go as high as 3.6% in some cases. Fortunately, Veterans discharged with a service-related disability or who have received a Purple Heart are exempt from paying this fee.
Higher VA Disability Rates Allow for Greater Home Loan Qualifications
As with any home loan, disabled Veterans have to meet credit and income requirements in order to move forward. These include having a healthy debt-to-income (DTI) ratio. Veterans with higher VA disability compensation rates have a greater leg-up on those who are not rated because the dependable tax-free income adds to the total income. Lenders are looking to get an idea of the overall financial picture of a potential borrower, so if your credit isn’t stellar, don’t let it keep you from contacting a VA home loan expert.
Specially Adapted Housing Grants
The VA also offers a special housing grant which can be used to help purchase, construct or modify a home to accommodate a disability. The Specially Adapted Housing (SAH) Grant can also be used toward paying off the principal of an adapted home purchased without the help of a VA grant. You can use the VA’s eBenefits Portal to determine eligibility for these housing grants.
California Property Tax Exemptions
Many states offer property tax exemptions for disabled Veterans, including California. Veterans who are rated at 100% disability may be eligible for a property tax exemption. The size of that exemption depends on current income. For more information on California property tax exemptions for disabled Veterans, check out this page from the Board of Equalization.
Your VA Home Loan Solution with SoCal VA Homes!
Veterans with the highest VA disability rates of 60% - 100% are the most likely use their income toward the purchase of a home. If this is you, a team that understands the ins and outs of the VA home loan process will be a great asset on your journey of purchasing a home. At SoCal VA Homes, we’re dedicated to serving Veterans with a superior home buying experience, from start to finish. Contact us online today for more information!