Tips & Special Topics
VA Loans and Added Housing Benefits for Disabled Vets
Added December 19, 2011
The VA provides a number of benefits for certain disabled veterans. Regarding housing, disabled veterans have two resources through the VA on which to rely: the VA Home Loan Guaranty Program and Specially Adapted Housing Grants.
Federally-backed mortgage benefits are available to help eligible military members finance their homes. Additionally, many disabled vets may be eligible for grants from the VA to make their homes more accessible for their specific disabilities.
Regarding federally-backed home financing, vets are likely eligible for VA mortgages if their condition is as a result of service. Even if they did not serve the minimum required days for war or peace time on active duty, most vets whose disability is caused by injuries sustained in service may likely be eligible for a VA loan.
Veterans with disabilities receive all the benefits outlined in the VA home loan guidelines with a few added distinctions.
All VA-eligible borrowers can expect:
• Zero percent down payment
• No private mortgage insurance
• Competitive interest rates
• No pre-payment penalties
Additionally, disabled veterans may also expect:
• Exemption from the VA funding fee
• Grants for special accessibility modifications
For most VA-eligible borrowers,
the VA funding fee is a requirement when using home loan benefits. The fee can run anywhere from .5 to 3.3 percent, depending on the borrower’s military status and number of times he or she has used the federally-backed mortgage program. However, for vets who receive monthly service-connected disability compensation, the funding fee is waived.
Fee-free VA loans may help many disabled vets purchase a home. But, what if the home is not exactly disability accessible? That’s where a special grant available only to certain disabled vets can help. Specially Adapted Housing (SAH) grants are available through the VA. These grants help veterans pay for mobility modifications to their homes to make them more accessible.
An eligible veteran or servicemember may receive an SAH grant of no more than 50 percent of the total cost of a specially adapted home, up to the aggregate maximum of $63,780. Public law allows for the SAH grant benefits to be used by each eligible veteran up to three times to accommodate for annual increases in the total aggregate maximum.
VA loans require owner occupancy, and SAH grants require ownership and title of home. For additional information about
VA home loan benefits for disabled vets, contact an experienced mortgage professional.
