VA Loan Articles
VA Home Loan Benefits For Disabled VetsDid you know qualifying borrowers with VA-recognized disabilities may be eligible for special consideration for VA insured mortgages? If you qualify and are looking for a VA home loan, it's important to know the benefits and assistance available to you based on your VA-recognized disability status.
For example, disabled veterans who currently receive or are eligible to receive VA disability payments may be qualified for an exemption to the VA loan funding fee.
The VA Loan Funding Fee is waived for borrowers who are already on record as receiving VA disability benefits, and the funding fee may be refundable to those who have their status officially recognized after the loan has closed. Borrowers must apply in writing for a VA loan funding fee refund-discuss your situation with your loan officer for more information on how to apply once your disabled veteran status is confirmed in writing by the Department of Veterans Affairs.
Some disabled veterans are also qualified to apply for VA grants designed to help a veteran purchase and/or modify a home to make it more accessible. Something called the VA 2101(a) Specially Adapted Housing Grant is one of these--it provides qualifying applicants up to 50 percent of the cost of a specially adapted house.
The 2101(a) grant is intended to help purchase a home already adapted for disabled access or a typical home that will be renovated to make it more accessible for the disabled vet. Another program is the VA 2101(b) grant, which was created for disabled vets specifically to offset the costs of adapting a home, with one important feature. It does not require qualified borrowers to purchase or even own a home.
2101(b) grant money may be used to renovate a home owned by the veteran's family where the disabled vet intends to live as his or her permanent residence. This grant would not require the borrower to purchase a home-again, it may be used for the renovations needed to make an existing house accessible to the veteran.
Veterans exploring these options should also look into the Temporary Residence Adaptation (TRA) grant, created for vets eligible for the Specially Adapted Housing section 2101(a) (SAH) or the Special Home Adaptation section 2101(b) (SHA) grant.
This grant offers financial assistance to help disabled veterans pay for renovations to a family member's property to meet the veteran's or service member's special needs. The wording of this grant implies that currently serving military members may be eligible for these funds if they are eligible under program guidelines. Qualifying veterans can receive up to $14,000 for a section 2101(a) SAH grant or up to $2,000 of the maximum amount for a section 2101(b) SHA grant.
VA grants of this nature often feature a list of qualifying disabilities--not all veterans or even all disabled military veterans are eligible for the grants--you may have to apply for eligibility for the program before you're allowed to request the grant. VA loan benefits related to disabled veteran status are usually not available until the veteran's disability has been officially recognized by the Department of Veterans Affairs.