How Your VA Disability Rating Impacts Your VA Home Loan Benefits
As a VA mortgage lender in Lacey, WA, we at West Coast Veterans understand the importance of providing comprehensive information to our clients. In this guide, we’ll discuss how your VA disability rating affects your VA home loan benefits, including VA funding fee exemptions and adaptive housing grants. We’re here to help you navigate the VA home loan process and make the most of your benefits.
Understanding Your VA Disability Rating
Your VA disability rating is a percentage that represents the severity of your service-connected disabilities and their impact on your employability. This rating ranges from 0% to 100%, with higher percentages indicating more severe disabilities. The VA assigns a rating based on your combined disabilities, following the VA Combined Ratings Table.
How Your Disability Rating Affects Your VA Home Loan Benefits
A VA disability rating of 10% or higher can significantly impact your VA home loan benefits. If you qualify, you can benefit from VA funding fee exemptions, adaptive housing grants, and additional income considerations when applying for a VA home loan with us.
VA Funding Fee Exemptions
The VA funding fee is a one-time payment that offsets the cost of the VA home loan program. This fee varies depending on your down payment, loan type, and whether you’ve used a VA loan before. However, if you have a service-connected disability rating of 10% or higher, you’re exempt from paying the VA funding fee. This exemption can save you thousands of dollars when purchasing or refinancing a home through our VA home loan program.
Adaptive Housing Grants for Disabled Veterans
If you have a disability rating, you may be eligible for adaptive housing grants to help modify your home for accessibility or purchase an accessible home. These grants include the Specially Adapted Housing (SAH) Grant, the Special Housing Adaptation (SHA) Grant, and the Temporary Residence Adaptation (TRA) Grant. Each grant has specific eligibility criteria based on your disability rating and the required modifications to your home.
Qualifying for a VA Home Loan with West Coast Veterans
When applying for a VA home loan with us, you must meet the same eligibility requirements as other borrowers, including income, credit, and property requirements. However, the VA may consider your disability compensation as stable, tax-free income, which can improve your debt-to-income ratio and increase your borrowing power. Additionally, the VA offers leniency for disabled veterans who may have faced financial challenges due to their service-connected disabilities.
To qualify for a VA home loan with West Coast Veterans, follow these steps:
- Obtain a Certificate of Eligibility (COE) from the VA, which verifies your military service and eligibility for the VA home loan program. You can check your eligibility through our Eligibility Checker.
- Review your credit report and address any issues or discrepancies to improve your credit score.
- Determine your budget for a home purchase by considering your disability compensation, other income sources, and monthly expenses. Our VA Mortgage Calculator can help you with this step.
- Contact us to prequalify for a loan and identify the maximum loan amount you can afford.
- Search for an accessible home or a home that can be modified to meet your accessibility needs, using your prequalification amount as a guide.
- Make an offer on a suitable property and submit the necessary documentation to us
for underwriting and loan approval.
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Complete a VA appraisal to ensure the property meets the VA’s Minimum Property Requirements (MPRs) and the agreed-upon purchase price.
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Close on the home and begin enjoying the benefits of homeownership as a disabled veteran.
Key Takeaways
Your VA disability rating measures the severity of your service-connected disabilities and ranges from 0% to 100%.
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- Disabled veterans with a 10% or higher rating can benefit from VA funding fee exemptions, adaptive housing grants, and additional income considerations when qualifying for a VA home loan with West Coast Veterans.
- VA funding fee exemptions can save disabled veterans thousands of dollars on their home purchase or refinance.
- Adaptive housing grants, such as the SAH, SHA, and TRA grants, can help disabled veterans modify their homes for accessibility or purchase an accessible home.
- To qualify for a VA home loan with West Coast Veterans, disabled veterans must meet the VA’s eligibility requirements, obtain a COE, and work with our team of experts.