VA Loan Benefits for Veterans With Disabilities

by Mike Flannagan 03/05/2023

If you're a qualifying U.S. veteran, a VA home loan can be your quickest path to home ownership. However, if you're legally disabled, there are even more financial benefits available. Here is a basic guide to VA loan benefits for veterans with disabilities:

Funding fee exemptions

VA loans don't require down payments, but come with funding fees instead. While much lower than conventional down payment amounts, funding fees can prove just as much of a financial hurdle as down payments for some veterans. The fees are calculated based on percentages ranging from 1.4% to 4% of the total amount of the loan. However, veterans with disabilities are exempt from paying VA funding fees if they qualify, potentially saving thousands of dollars.

Special housing grants

There are multiple housing grants available specifically to help veterans with disabilities finance and improve their dream homes. The main types of grants are concerned with establishing or improving accessibility of your residence, either permanently or temporarily.

For example, the VA Special Housing Adaptation (SHA) Grant is available to help either purchase or make changes to a home to accommodate a disability. Changes could include projects like ramp installation, wheelchair-accessible bathroom features and hands-free smart home equipment.

For temporary solutions, qualified veterans can apply for a VA Temporary Residence Adaptation (TRA) Grant to finance modifications to a relative's home. Even without complete remodeling, there are plenty of ways to improve accessibility and accommodate a range of disabilities using these options.

State property tax exemption

Depending on their state of residence, veterans with disabilities may be exempt from paying property taxes. Most states offer a form of tax break for qualified veterans, with amounts and requirements varying from one state to the next. To find out if you're eligible for this benefit, you can find resources available online and through the VA directly to determine your individual state's exemption offerings.

About the Author
Author

Mike Flannagan

Mike Flannagan, Principal Broker @FlannaganAssociates. Mr. Flannagan began his real estate career in 1991, Mike’s educational and professional experiences have provided a strong foundation in his real estate career. Such a background has been exceptionally useful in understanding, managing, problem-solving, and ultimately closing complex transactions. These talents, however, do not preclude equal success in navigating more traditional transactions, where Mike’s naturally strong work-ethic and contagiously kind personality complete the full circle of his effectiveness as a true and pleasant partner in the purchase and sale of a full range of real estate assets. Mike is also a Master Real Estate Developer and has worked on various communities right here in Loudoun County. Additionally, he also build’s luxury custom homes through his entity Virginia One Development priced from $3-million and up. Mike has passed $1 Billion in total life time achievement in transactions.