The VA offers a variety of benefits to veterans that served our country. VA loans give veterans access to 100% financing, low interest rates and low closing costs. In addition to help with home financing, disabled veterans may have access to many more benefits.
Keep reading to find out what you may qualify to receive.
No Funding Fee
Every veteran pays a funding fee when they take out a VA loan. The funding fee helps the VA continue to guarantee 100% LTV loans for veterans. The VA doesn’t fund the loans themselves, but they offer a guarantee to lenders. The guarantee promises the lender that the VA will pay them 25% of the defaulted mortgage amount if a veteran defaults.
The VA funding fee is 2.15% of the loan amount, but disabled veterans may be exempt from it. You must have a disabled rating from the VA in order to qualify. If you look at the big picture, you can see that a VA funding fee exemption can save you thousands of dollars when you close on a loan. Let’s say, for example, that you take out a $200,000 loan, you would save $4,300 on your funding fee.
Property Tax Savings
Each state has a different program for property tax exemptions, but it is worth looking into. Some states offer an immense amount of help to disabled veterans, saving you thousands of dollars on your property taxes. This can help lower the cost of owning a home, making it possible for disabled veterans to remain in their homes.
Grants for Home Modifications
The Specially Adapting Housing Grant provides disabled veterans with funds to make his or her home more accessible. The Grant can help you fix up your home to make it easier for you to get around or help you purchase an already accessible home.
The grant allows funds up to $63,780 in most cases, or up to 50 percent of the home renovation costs. Because it is a grant, you do not have to repay the funds. This is even better than a low interest loan because you would have to pay the loan back (with interest).
Your VA disability income can count as income for qualifying for the VA loan. As long as you can prove that it is steady and that you will receive it for at least the next three years, your VA lender can use the income for qualifying purposes. This can help you get the financing you need to buy a home without having to get a job. The VA loan has flexible guidelines, making it easier for veterans to get the loan that they need.
Disabled veterans have a variety of benefits they can take advantage of in addition to the VA loan that any veteran can use. If you use your benefits, you may lower the cost of home ownership and/or get help making your home more accessible. Talk with a reputable VA lender to find out which benefits you may qualify to receive to make homeownership less expensive for you.