Housing Benefits
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Federally, there are several housing programs that benefit Veterans and their spouses.

VA Loan

A VA loan is a great program that allows eligible veterans or their surviving spouses to afford a home with NO money down and NO private mortgage insurance (PMI).

  • For a breakdown of the home buying process click HERE.

IMPORTANT NOTE:

  • The VA itself does NOT issue mortgages, they merely act as a guarantor to the bank!

Uses

  • Buy a home, a manufactured home, or a condominium.

  • Buy a lot for a manufactured home.

  • Build, repair, or improve a home (including energy efficiency improvements).

  • Refinance an existing VA loan via a Interest Rate Reduction Refinance Loan (IRRRL).

Eligibility

IMPORTANT NOTES:

  • Educational benefits CANNOT be counted as income in consideration for a mortgage!

  • The income of people who are not your spouse CANNOT be counted as income in consideration for a mortgage!

  • You must meet the credit and income requirements to qualify for a mortgage from whichever lender you use.

Veterans

Surviving Spouses

At least one of these must be true. The Veteran:

  • Is missing in action, or

  • Is a prisoner of war (POW), or

  • Died while in service or from a service-connected disability and you didn’t remarry, or

  • Died while in service or from a service-connected disability and you didn’t remarry before you were 57 years old or before December 16, 2003, or

  • Had been totally disabled and then died, but their disability may not have been the cause of death (in certain situations).

Note:

  • A surviving spouse who remarried before December 16, 2003, and on or after their 57th birthday, must have applied no later than December 15, 2004, to establish home loan eligibility. The VA will deny applications received after December 15, 2004 from surviving spouses who remarried before December 16, 2003.

Certificate of Eligibility (COE)

This certificate is needed to show whomever you are getting the mortgage through that you are eligible for the VA loan.

Depending if you are a Veteran or a Surviving spouse, will determine how you go about getting a Certificate of Eligibility for the VA loan.

Veterans

Surviving Spouses

If you’re receiving Dependency and Indemnity Compensation (DIC) benefits:

You’ll need to fill out a Request for Determination of Loan Guaranty Eligibility—Unmarried Surviving Spouses (VA Form 26-1817).

You’ll also need the Veteran’s DD214 (or other separation papers) if available.

Submit the form and discharge or separation papers to:

If you’re NOT receiving DIC benefits:

You’ll first need to fill out an Application for DIC, Survivors Pension and/or Accrued Benefits (VA Form 21P-534EZ).

You’ll also need:

Submit the form and documents to the VA pension management center that serves your state.

Funding Fee

To help offset the cost of this program to taxpayers, the VA uses a funding fee.

There are several factors that determine how much this fee is:

  • Size of down payment;

  • Size of the loan; and if

  • First use or additional usage of a VA loan.

Click Here to determine how much your funding fee will be.

Funding Fee Exceptions

However, you ARE exempt from paying the funding fee if any of the following apply:

  • You receive VA monetary disability compensation (paid at the 10% rate or higher);

  • You receive Dependency and Indemnity Compensation (DIC) as the surviving spouse of a Veteran;

  • You’re a servicemember who has received a proposed or memorandum rating BEFORE the loan closing date that says you’re eligible to get compensation because of a pre-discharge claim; or

  • You’re a servicemember on active duty who, BEFORE or ON the loan closing date, provides evidence of having received the Purple Heart.

Funding Fee Refunds

To request a refund the following must BOTH be true:

  • You were awarded service-connection for a condition with a rating of at least 10%; AND

  • The Effective date is BEFORE your closing date.

If you meet the above criteria then call the VA at:

  •  877-827-3702

Frequently Asked Questions

    • You can only purchase property in the United States, its territories, or possessions (including Puerto Rico, Guam, Virgin Islands, American Samoa, and Northern Mariana Islands).

    • You can use a VA loan more than once. However, you cannot have more than one VA backed loan out at any one time. Meaning, you will need to pay off the original mortgage first - then you can get another VA backed loan.

Interest Rate Reduction Refinance Loan (IRRRL) AKA Streamline Refinance

Eligible Veterans with a VA loan can use IRRRL to reduce their interest rate or change your adjustable/variable interest rate to a fixed rate.

IMPORTANT NOTES:

  • You are responsible for paying closing cost fees! Closing fees can easily be in the thousands of dollars! Do NOT be fooled by banks that ‘roll’ these fees into your new loan and try to pass it off as if there are no fees! (though the fees are allowed to be rolled in just fine).

  • You may be required to pay the VA funding fee (again).

  • Just like your original VA loan, you are NOT required to have Private Mortgage Insurance (PMI).

  • Your new loan continues to be eligible for Veterans Affairs Servicing Purchase (VASP).

Requirements

To be eligible you must meet the following:

  • Have a VA loan;

  • IRRRL is being used to refinance your VA loan;

  • You still live in or used to live in the home; and

  • It has been at least 210 days since your first mortgage payment.

NOTE:

  • If you took out a second mortgage (AKA Home Equity Line of Credit (HELOC)), the lender must agree to let the refinanced loan be considered the first mortgage.

Applying

  1. Research and find a lender.

  2. Provide lender with the information they request.

  3. Complete whatever process they have to close and pay all applicable fees.

Veterans Affairs Servicing Purchase (VASP)

If you took out a VA loan and are having trouble staying above water, you may be able to use VASP to change the terms of the loan and prevent foreclosure. This generally translates to getting the interest rate changed to 2.5% and changing the term of the loan (re-extending it to 30 years). Thereby making your monthly payments affordable.

Requirements

IMPORTANT NOTE:

  • This program IS a program of LAST RESORT and is the last option in the “Home Retention Waterfall”. Meaning options such as special forbearance (temporary break in mortgage payments), repayment plans, or loan modifications MUST be considered first.

To be eligible you must meet the following:

  • Your VA loan is 3-60 months delinquent (you’re 3-60 months behind on payments) when your servicer submits it into the program;

  • The owner of the property or an immediate family member is living on the property;

  • You aren’t in active bankruptcy (and neither is anyone else listed on the loan) when your servicer submits the loan into this program;

    • Dismissed or discharged bankruptcy (Chapter 13 or Chapter 7) IS okay.

  • You’ve resolved the reason you were in default and can start making monthly mortgage payments again;

  • You and anyone else listed on the loan have a stable and reliable source of income;

  • Your VA-guaranteed loan is in first lien position and the property doesn’t have any liens or judgments that would risk the VAs first lien position; 

  • You’ve made at least 6 monthly payments since the start of the loan (or since any modification to it); and

  • You and all others listed on the loan agree to the terms of the VASP modification.

Applying

The loan servicer (organization that holds your loan) is the one who applies to this program (with your approval).

VA Loan Assumption

Is the home of your dreams owned by a Veteran who still has an active VA loan on the property? Good news buyer! You (even if NOT a Veteran) can assume their VA loan: meaning you can take over the current terms of their mortgage (interest rate, monthly payment amount, and remaining length).

IMPORTANT NOTES:

  • Sellers who allow their VA loan to be assumed WILL LOSE their entitlement to get another VA loan - UNLESS the buyer can substitute their own VA loan entitlement; OR till such time that the VA loan is paid in full.

  • VA funding fee may be charged to the buyer if applicable.

  • Buyer MUST still qualify to assume the loan (credit score, income, etc.).

Process

  1. Find a home seller who has an active VA loan.

    • A real estate agent who has access to MLS can check. Alternatively, you can check real estate listings and see if the seller mentions their willingness to have their VA loan assumed.

  2. Get information from the seller (whats your interest rate/monthly payment?).

  3. Make an offer to the seller - contingent on the VA loan assumption (assuming you are willing to stop the show if it falls through for whatever reason).

  4. Provide information to the lender who has the mortgage (proof of income, bank statements, etc.).

  5. Wait for approval.

  6. Finalize paperwork.

Frequently Asked Questions

    • Because they want to help give the buyer a leg up with their lower interest rate. Particularly since the seller cannot take their old interest rate with them.

    • Not quite…. unless the seller is really stupid. You should expect to offer the seller the amount of equity they have in the property + whatever appreciation.

    • Ah, you have found the biggest issue with assuming a VA loan! In short you will have to have cash on-hand or find some other means to get the money to buy the seller’s equity in the property + any appreciation.

    • Since the lender is not going to be making a lot of money on this deal…. you are NOT going to be a priority, and you may end up pigeonholed. So do not be shocked if the process takes several months longer than if you were just applying for a new (VA) loan.

Native American Direct Loan (NADL)

If you’re a Veteran, and either you OR your spouse is Native American, this program may help you get a loan to buy, build, or improve a home on federal trust land. You may also get a loan to refinance an existing NADL and reduce your interest rate.

Eligibility

You or your spouse must meet ALL of the following conditions:

  • Your tribal government has an agreement or Memorandum of Understanding (MOU) with the VA detailing how the program will work on its trust lands;

  • You have a valid VA home loan Certificate of Eligibility (COE);

  • You meet credit standards;

  • You have proof that you make enough money to cover the mortgage payments and other costs of owning a home; and

  • You’ll live in the home you’re using the NADL to buy, build, or improve.

For more information click HERE.

Alaska Native Veterans Land Allotment Program of 2019

Eligible Alaska Native veterans can get up to 160 acres of Federal land. There is no requirement for personal use or occupancy mandated under previous laws.

IMPORTANT NOTES:

  • This program expires on Dec. 29, 2025.

  • Those who have received allotments under previous programs are ineligible.

Eligibility

  • Vietnam-era (served between Aug. 5, 1964, and Dec. 31, 1971) Alaskan Native American Veterans or their heirs

Applying

Click HERE to apply as well as learn more about the program.

Housing Adaptation Assistance

Veterans with certain service-connected disabilities and non-service-connected mobility issues can get special grants from the Department of Veterans Affairs (VA) to:

  • Build an adapted home;

  • Install ramps or widen doors; and/or

  • Make other modifications to help you live independently.

Special Housing Adaptation (SHA)

If granted you are entitled to the actual cost to adapt a house or for the appraised market value of necessary adapted features already in a house when it was purchased, up to the total maximum allowable by law.

  • For information on benefit amount and applying click HERE.

IMPORTANT NOTE:

  • If you are eligible for SAH then you are NOT entitled to a separate award of SHA!

Qualifications

You must meet BOTH of the following criteria:

  1. You own or will own the home, and;

  2. Have a qualifying service-connected or 1151 disability:

    • Loss or loss of use of BOTH hands.

    • *Deep partial thickness burns that have resulted in contractures with limitation of motion (LOM) of:

      • 2 or more extremities, or;

      • At least 1 extremity and the trunk.

    • *Full thickness or subdermal burns that have resulted in contracture(s) with LOM of:

      • 1 or more extremities, or;

      • The trunk

    • *Residuals of an inhalation injury**, including, but not limited to:

    *Condition(s) must rate 100%.

    **The condition must have resulted from an inhalational injury caused by breathing steam or toxic inhalants, such as fumes, gases and mists present in a fire environment (including, but not limited to, acrolein, chlorine, phosgene, and nitrogen dioxide).

Temporary Residence Adaptation (TRA)

For those who would qualify for an SAH or SHA grant but are living temporarily in a family member’s home, you may be able to get a Temporary Residence Adaptation (TRA) grant.

It can pay for necessary changes to your relative’s home.

  • Click HERE to apply.

Home Improvements and Structural Alterations (HISA)

his grant provides medically necessary improvements and structural changes to your primary home.

  • For more information click HERE.

IMPORTANT NOTE:

  • You do NOT need to have a service-connected disability to qualify!

Veteran Readiness and Employment (VR&E) - Housing Adaptation Assistance

VR&E may provide home adaptations to individuals who are not currently able to work because of the effects of their service-connected disabilities, or who require adaptations to achieve a vocational goal. The benefits are limited to those required to improve independence at home and/or in the community.

Specially Adapted Housing (SAH)

If granted you are entitled to not more than 50% of the cost of a specially adapted house, up to the total maximum allowable by law.

  • For information on benefit amount and applying click HERE.

Qualifications

You must meet BOTH of the following criteria:

  1. You own or will own the home, and;

  2. Have a qualifying service-connected or 1151 disability:

    • 20/200 visual acuity* or less in BOTH eyes.

      • *A Visual field impairment with an angle no greater than 20 degrees is considered the equivalent of 20/200 visual acuity.

    • Amyotrophic Lateral Sclerosis.

    • Loss, or loss of use, of 1 lower extremity (foot or leg); which makes it so you can’t balance or walk without the help of braces, crutches, canes, prosthesis, or a wheelchair.

      • Veteran MUST have served on or after September 11, 2001.

    • Loss or loss of use of more than 1 limb; which makes it so you can’t balance or walk without the help of braces, crutches, canes, prosthesis, or a wheelchair.

    • **Loss or loss of use of both arms at or above the elbows.

    • **Full thickness or subdermal burns that have resulted in contractures with limitation of motion (LOM) of:

      • 2 or more extremities, or;

      • At least 1 extremity and the trunk.

      **Condition(s) must rate 100%.

Housing Help for Older Veterans

In-home care, assisted living, and retirement homes for Veterans.

  • Get help finding housing and care in a variety of Residential settings. This includes nursing homes, assisted living, and medical foster homes.

  • If you need in-home care so you can remain at home, the VA may be able to help. Call the VA Health Care Benefits number at 1-877-222-8387. Or, contact the VA medical center nearest you.

  • Another option for some military retirees and other Veterans is the Armed Forces Retirement Home (AFRH). The AFRH has two locations: Washington, DC, and Gulfport, MS. Both offer recreation and wellness services including assisted living and skilled care.

For additional information on elder care click HERE.