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VA Home Loans For Disabled Veterans

VA Home Loans For Disabled Veterans

VA Home Loans For Disabled Veterans: Everything You Need to Know

Buying a home is one of the biggest purchases a Veteran makes. As a result, the process can often feel overwhelming and hard to navigate. One of the biggest challenges Veteran buyers face is financing the home. 

For veterans, VA home loans are available to make home ownership possible. And extra VA loan benefits are available to veterans who have a military service-related disability. Whether you’re looking to buy a new home or refinance your current home, these benefits can be very valuable. 

In this article we’re taking a closer look at VA home loans for disabled veterans along with other lesser-known benefits that are available.

VA Loans for Disabled Veterans

Regardless of disability rating, disabled veterans who have VA loan entitlement are eligible for a VA home loan as long as theymeet the qualifications for the loan. While requirements vary, veterans typically need to meet minimum service standards, have an acceptable credit score, meet the minimum income requirements, and have an acceptable debt-to-income ratio. 

The debt-to-income ratio is the minimum mortgage payments on all your debts divided by your gross monthly income before taxes are taken out. One of the benefits of the VA loan program for disabled veterans is you can “gross up” your disability income by 25% to qualify for a VA loan.  This increase in income can mean the difference between loan approval and denial.

Lenders typically want to see a credit score of 620, but having a lower credit score isn’t an immediate disqualification, especially a lender like HomePromise that will allow VA credit scores even lower. Regular, reliable income is important to show lenders that you’ll have the ability to make your monthly payments while keeping up with your other bills.

These loans offer veterans many benefits that aren’t available in a typical mortgage, including:

  • No down payments necessary
  • No monthly mortgage insurance no matter how little the down payment
  • Lower than average interest rates over the life of the loan
  • No penalties for early VA loan pay-offs
  • Less strict credit requirements for approval
  • Lower income requirements than Conventional loans
  • Lower closing costs for disabled veterans
  • High loan amounts with the lifting of the VA loan limit
  • Cash out refinance loans to 100% of the value of your home*
  • Manufactured home VA loans with no money down

* only available from a select group of VA lenders like HomePromise 

A veteran’s disability rating will not hurt the chances of being approved for a VA loan as long as those minimum requirements are met. In fact, there are even more benefits available to help disabled veterans buy their own homes, refinance their homes, or modify their current home.

Disability Compensation as Income

All veterans who apply for a VA mortgage need to document their income. Lenders need to know that the applicant has a steady source of income and a reasonable debt-to-income ratio to consistently pay their mortgage on time. The VA requires income to be ​​stable, reliable and the income has to be expected to continue.

If you’re receiving disability compensation, you’ll be able to include that as income on your application. This is in addition to any other source of income you may also have. Since your disability compensation is reliable and expected to continue, it will help you meet the qualifications for loan approval. The VA rules for income are complicated, please call our VA home loan experts at 800-720-0250 for help.

VA Funding Fee Exemption

When you take out a VA loan, you’re required to pay a VA funding fee. The Department of Veterans Affairs charges these fees to cover their losses on defaulted loans. The amount you’re required to pay depends on several factors, including your service time and for the size of your down payment. 

If you’re a first-time buyer without a down payment, the funding fee is 2.3% of the total loan amount – so if you’re applying for a $150,000 loan, the funding fee would be $3,450. So, this exemption can help save a lot of money at closing. 

However, veterans who are entitled to compensation for a service-connected disability are exempt from paying this VA funding fee. Surviving spouses are also exempt from this fee if the veteran died in service or from a disability related to their service. Veterans who received their disability rating soon after they closed on their loan may also be able to obtain a refund of the VA funding fee.

Housing Grants for Disabled Veterans

In addition to these loans and programs, disabled veterans may qualify for grants to help fund the purchase of a home or to modify their current home to make it more accessible. 

Specially Adapted Housing (SAH) grant programs are available to veterans with qualifying service-related disabilities. Special Home Adaptation (SHA) grants are also available to qualifying veterans to fund adaptations like ramps, wider doorways, and kitchen and bathroom modifications.

Property Tax Exemptions and Credits for Disabled Veterans

Depending on the state or county where you live and the amount of your disability rating, if you’re a disabled veteran you may qualify for property tax exemptions and credits. These exemptions can lead to thousands of dollars in savings. In some areas, veterans with a 100% disabled status qualify for the real estate property tax relief, but other areas offer benefits to veterans with lower disability levels as well.  If you call our VA lending experts at 800-720-0250 we can help you find out what is available to you in your area.

VA Home Loans Can Help Make Homeownership a Reality

Buying a home can be an overwhelming process, especially when it comes to the mortgage process. Thankfully, VA home loans for disabled veterans can help make your homeownership goals a reality with no down payment, lower credit score requirements, and no monthly mortgage insurance (often call Private Mortgage Insurance or PMI). You may also qualify for benefits as a disabled veteran like grants, property tax exemptions, and a funding fee exemption.

HomePromise is a lender approved by the United States Department of Veterans Affairs to make VA loans.  Call HomePromise today at 800-975-0640 to talk to one of our VA home loan experts to see if you qualify for VA home loan benefits and we can help see if you can get your Certificate of Eligibility (COE).

What is the VA Loan Origination Fee?

What is The VA Loan Origination Fee?

When considering different mortgage lenders, one important factor to be aware of is what fees they will charge you. One of the fees mortgage lenders will charge you is the VA loan origination fee. Read more

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Can A Surviving Spouse Get A VA Loan

Can A Surviving Spouse Get A VA Loan

Can A Surviving Spouse Get A VA Loan

We are often asked, can a surviving spouse get a VA loan. The answer is yes. This is because the department of veterans affairs allows the extension of the VA home loan benefit to surviving military spouses.

The VA home loan benefit program is designed to help surviving spouses of veterans and military service members who died while in service or from a service connected disability.

You may be eligible for this benefit if your spouse died during active duty or due to a service related disability.

Surviving Spouse Eligibility Requirements

For a surviving spouse to become eligible for a VA loan one must meet at least one of the following eligibility requirements:

  • You are eligible if you are the unmarried surviving spouse of a veteran who is missing in action or who was a prisoner of war (POW).
  • If you are the surviving spouse of a veteran or military member, who died during active service or from a service related disability and didn’t remarry before December 16, 2003 or before age 57.

You may also be entitled to surviving spouse benefits if the veteran’s death did not result from a service-related cause. Listed below are the conditions for eligibility.

  • The Veteran who was totally disabled for ten or more years directly before death.
  • A Veteran rated totally disabled for five or more years after immediate separation from service.
  • As a former prisoner of war, the veteran was totally disabled for at least one year preceding death after September 30, 1999.

Certificate Of Eligibility (COE) For Surviving Spouse

Your eligibility for a VA loan requires proof to verify your status as a surviving spouse. Before applying for VA guaranteed mortgages, you must obtain a Certificate of Eligibility (COE).

For a military spouse to qualify, you must submit a copy of the Veteran’s DD214. For more information about any compensation you receive, call one of our VA loan experts at 800-720-0250.

You can apply for your eligibility online with the VA or save time by having HomePromise obtain it for you.  Call 800-720-0250 for more help.

VA Loan Benefits For Surviving Spouses

As a surviving spouse you are entitled to use your VA home loan more than once. Once you purchase a home you may have remaining eligibility to purchase a new home. Many think you can’t use your benefit a second time but often you can. 

The rules and calculations for using your benefits again are complicated. You can call our VA home loan experts for help at 800-720-0250.

There are many benefits to using the VA home loan program that are extended to surviving spouses like:

  • Do not need to pay a funding fee
  • Competitive interest rates
  • Less rigid credit score requirements
  • No down payments for most loans
  • 100% cash out refinancing
  • No mortgage monthly insurance

Refinancing VA Loans With HomePromise

VA Loan Requirements

The VA Home Loan benefit is one of the most significant benefits for active military members and Veterans. A VA Home Loan comes with financial benefits for qualified Veterans. The VA loan income guidelines and credit score for VA loan approval are more flexible than other home loan programs. For many Veterans, the VA Home Loan benefit is their only option for owning a home. See if you qualify

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800-720-0250

 

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How To Get A VA Loan With A 580 Credit Score

How To Get A VA Loan With A 580 Credit Score

How To Get A VA Loan With A 580 Credit Score

The VA home loan benefit makes owning a home possible for Veterans, active service members and surviving spouses. Unlike conventional loans, The Department of Veterans Affairs doesn’t require a specific credit score. You still want to avoid having bad credit because VA lenders will still look at your credit history and may deny you based on severe credit events in your past. It’s very important to discuss your credit history with a VA lending expert at 800-720-0250.

VA loans require this! So, while having bad credit or a low credit score doesn’t mean you’ll be denied a VA loan, a higher score may help keep your interest rate down. This will allow for more affordable payments over the life of the loan. You may also enjoy buying a home without having to make a down payment.

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