5 VA Loan Benefits All Disabled Veterans Should Know About
Are you aware that disabled veterans qualify for certain VA loan benefits due to the injuries they’ve suffered in the line of duty? The VA wants to ensure you receive comfortable loan arrangements and exceptional care. This post highlights five great VA loan benefits that can only be received by veterans with disabilities.
1. VA Funding Exemption
Lenders are required to collect a VA funding fee by the federal government. The fee (usually 0.5 percent to 3.3 percent of the total amount of the loan) was implemented to remove the expenses incurred by a taxpayer when he or she applies for the VA Home Loan Guaranty Program. Disabled veterans don’t have to pay this fee. Also, disabled veterans can ask for a refund if the date of their disability compensation comes before the closure of the loan.
2. Tax-Free Monetary Benefits
The Military Benefits website points out that disabled veterans can get up to $3,423.98 each month if they qualify for tax-free monetary benefits. Military Benefits provides a VA disability chart that can be used by veterans to determine how much financial assistance they qualify for. Different rates are available for independent disabled veterans, disabled veterans without children (but with parents and spouse), and disabled veterans with children. The disability rating will also affect the amount of tax-free compensation you qualify for.
Veterans with disability may also be eligible for compensation for any home renovations they need over the year. This financial compensation is classified as the Specially Adapted Housing Grant (SAH). The grant covers remodeling of a current house or the construction of an adapted one. Renovation-related compensation may also be received by family members if they’re housing a veteran with disability. Buying a home that has been adapted for the specific disability is also covered by the grant. Disability benefits should be approved before an application is made for a grant.
4. Exemption From Property Tax
Disabled vets are eligible for tax exemptions and credits when they buy a new property. You can reduce the amount of annual taxes you need to pay through the Disabled Veterans Tax Exemption program. The exemption amount is different for different states; a local VA office will tell you more about the specific benefit in your state. Most disabled veterans receive full exemption. You can also check if you qualify for a MCC (Mortgage Credit Certificate). The MCC allows you to claim tax credits for a part of the mortgage interest you pay each year. The tax credit amount is determined by the state, but it is worth applying for.
5. Other Benefits
Depending on your state, you might be eligible for other benefits like free license plates, fee waiver for DMV registration, or annual fee cuts for hunting and fishing licenses. Also, registered domestic partners, children below 27 years of age, unmarried surviving spouses of a veteran who died with a disability, and spouses in general may qualify for college and tuition fee waivers. If the fee has been paid in advance, you can reopen a service-connection disability fee compensation claim. Lastly, if you’ve been assigned a disability rating of at least 50 percent, you can apply for CRDP (Concurrent Retirement and Disability Pay).
VA loans are there to assist veterans of the military, so make sure to leverage the additional benefits if you qualify.