If you're a disabled vet, you may qualify for exclusive benefits associated with the VA Home Loan Guaranty Program.
Federally-backed mortgage benefits help eligible military members finance their homes. Additionally, many disabled vets may qualify for grants from the VA to adapt their homes to their specific disabilities.
Most vets with disabilities caused by injuries sustained in service will likely be eligible for a VA loan. Disabled vets often do not need to meet the minimum required service days for war or peacetime on active duty. They would still need to qualify with credit and income to receive a VA loan.
Disabled veterans receive all the benefits VA home loans have to offer with a few advantages.
All VA-eligible borrowers can expect:
· As little as zero percent down payment
· No private mortgage insurance
· Competitive interest rates
· No pre-payment penalties
Additionally, disabled veterans can also expect:
· Exemption from the VA funding fee
· Grants for special accessibility modifications
Vets who receive monthly service-connected disability compensation are exempt from the VA funding fee which can run from .5 to 3.3 percent for everyone else. Only surviving spouses join disabled vets in this exemption.
Fee-free mortgages may provide financing for the purchase of a home. But, what if the home is not disability accessible? Specially Adapted Housing (SAH) grants are available through the VA to help disabled veterans pay for mobility modifications that can make their homes more accessible.
SAH grants can be made for no more than 50 percent of the total cost of a specially-adapted home, up to the aggregate maximum of $63,780. The law allows for the SAH grant benefits to be used up to three times by each eligible veteran to accommodate for annual increases in the total maximum.
Some restrictions apply, like VA loans require owner occupancy, and SAH grants require ownership and title of home. For more on VA home loan benefits for disabled vets, get in touch with an experienced mortgage professional.
Sean P Eagan
Former Chairman American Cold War Veterans
Life Member Veterans of Foreign Wars