Tips & Special Topics
Assisted Living and VA Loans
Added December 19, 2011
Senior housing with assisted living exists across the country. Some of these homes in senior communities are available to own rather than rent. VA borrowers with assisted living needs may wonder whether they can get a VA-guaranteed mortgage to finance a property located in an assisted living community.
Certain requirements exist for properties financed with the VA guarantee. Condos and townhomes must be on the VA-approved list, and all properties must undergo a VA appraisal and have safe living conditions. As long as the assisted living property meets those requirements, it can be financed with a VA loan. Not only can veterans or surviving spouses with assisted living needs purchase certain homes in assisted living communities using the VA Home Loan Guaranty Program, but there may be additional VA benefits available to them.
Buying a home in an assisted living community using a VA loan is much like buying a home in most other communities where VA loans are used. VA borrowers can get a home within the conforming loan limit with nothing down and no monthly private mortgage insurance payment. VA home loans have no prepayment penalties and they are available with competitive interest rates from VA-approved lenders. And, if the VA borrower purchases a home in an assisted living community, it is likely there are VA benefits available to him or her that can help pay for the assisted living care.
The VA has a little-known benefit that includes reimbursement for assisted living care for wartime veterans and surviving spouses. In a press release dated December 19, 2006, then VA Secretary Nicholson reached out to wartime veterans and surviving spouses to announce that a special monthly pension benefit called Aid and Attendance was going underutilized
Aid and Attendance, not a new program at the time of the release, is available to wartime veterans and surviving spouses who have in-home care or live in nursing homes or assisted-living communities.
Many elderly veterans and surviving spouses assume they are not eligible for the special monthly Aid and Attendance benefit because they make too much money to qualify for a VA pension. Perhaps, this is why the benefit went underutilized.
To qualify for the Aid and Attendance benefit, wartime vets and surviving spouses must be unable to feed and dress themselves, and take care of bathing and other bodily needs without assistance. Those who are bedridden or need help with prosthetic or orthopedic devices may also qualify for Aid and Attendance. Finally, those with physical or mental injuries or illnesses that need assistance to protect them from daily environmental hazards or dangers may also be eligible.
For a wartime veteran or surviving spouse to qualify for this special monthly pension, the veteran must have served at least 90 days of active military service, one day of which was during a period of war, and be discharged under conditions other than dishonorable.
Wartime veterans who entered active duty on or after September 8, 1980, (October 16, 1981, for officers) must have completed at least 24 continuous months of military service or the active duty period ordered.
If all qualifying criteria are met, the VA will determine eligibility for the Aid and Attendance benefit by adjusting for un-reimbursed medical expenses from the veteran’s or surviving spouse’s annual household income. The remaining income amount must fall below the annual income threshold for the Aid and Attendance benefit. If it does, the VA will pay the difference between the claimant’s household income and the Aid and Attendance threshold.
The Aid and Attendance annual income threshold is currently $18,234 for a veteran with no dependents. For a veteran with one dependent, the threshold increases to $21,615. For each additional dependent, the threshold increases by $1,866. For surviving spouses with no dependents, the annual Aid and Attendance threshold is $11,715. For spouses with one dependent, the threshold increases to $13,976 and by $1,866 for each additional dependent.
For more information about purchasing a home in an assisted-living community using a VA-guaranteed loan contact an experienced VA mortgage professional.
