Introduction
Homeownership is more affordable for active military personnel, veterans, and their families with VA loans. VA loan benefits may be extended to veterans with disabilities or injuries sustained while serving. Veterans often ask the following questions about the VA loan program:
- Is the VA funding fee exempt for disabled veterans?
- Are VA loans available to veterans with disability income?
- Do disabled veterans qualify for tax benefits?
- Is a program or grant available for disabled veterans to improve their homes?
The disabled veterans get added-on benefits which include:
- Fee waiver for VA funding
- Income benefits are provided to disabled veterans
- Special needs housing grants
- Property tax exemptions
Fee exemptions for VA funding
VA loan borrowers usually have to pay a funding fee. This fee covers losses if a VA loan defaults, as the Department of Veterans Affairs guarantees these loans.
There is no VA funding fee for veterans with disabilities related to their service.
If the veteran dies in service or suffers a disability connected with their benefit, the funding fee does not apply. A refund may be available to veterans with pending disability claims.
You will be charged a financing fee depending on your down payment and service. If you are a first-time buyer without a down payment, you must pay 2.3% in funding fees. If a veteran takes out a $200,000 loan, funding fees will amount to $4,600. Veterans with disabilities may be eligible for VA funding fee exemptions, saving them a lot of money.
Veterans’ income from VA disability benefits
A VA loan benefit for disabled veterans is that their disability compensation can often be used as a down payment on a mortgage. It is still necessary for veterans to apply for a VA mortgage and document their income by the normal process. A higher income increases your chances of being approved for a loan.
Veterans with disabilities can apply for VA loans with grants.
For disabled veterans, grants are available to help them buy, build, or renovate their permanent homes to meet their needs. Specially adapted housing (SAH) grants may be available to veterans with service-related disabilities as of 2021. As of the fiscal year 2021, qualified veterans may also receive a Special Home Adaptation (SHA) grant of up to $20,215. These grants may cover adaptations such as ramps for getting in and out of the house, handles in the bathroom, or broader doorways for wheelchairs.
Veterans’ tax credits and exemptions: VA loan assistance
Disabled veterans may also qualify for property tax exemptions and credits. State exemption rules may differ depending on the veteran’s disability rating and have different requirements. Most veterans receive benefits if they have a 100% service-connected disability, but some states grant benefits to veterans with lesser disabilities. Saving thousands of dollars is possible with these tax breaks. A tax advisor can help you make the most of the current tax laws.
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