As we move through 2025 and look ahead to 2026, the landscape of homeownership continues to evolve. For disabled veterans, the VA Home Loan remains one of the most powerful and enduring benefits, offering a path to homeownership that is both accessible and affordable. However, many veterans are unaware of the specific advantages tied to their disability status that can save them thousands of dollars.
At VAFastLoans.com, we believe in empowering our heroes with the knowledge they need to secure their financial future. Here are the key VA Home Loan benefits that disabled veterans need to know about right now.
1. The Full VA Funding Fee Exemption
This is one of the most significant financial benefits. Most veterans using a VA loan pay a funding fee, which is a percentage of the loan amount. However, veterans with a service-connected disability rating of 10% or higher are exempt from paying the VA funding fee.
Why this matters in 2025: With home prices and loan amounts remaining substantial, this exemption can save you tens of thousands of dollars at closing. As you plan your home purchase for the remainder of 2025 or into 2026, knowing you have this exemption puts you in a stronger financial position from the start.
2. Property Tax Exemptions
While the VA itself doesn’t grant property tax breaks, your disability status can make you eligible for significant property tax exemptions at the state and county level. These programs vary widely but can drastically reduce your annual housing costs.
- What to look for: Many states offer full or partial property tax exemptions for veterans with a 100% service-connected disability rating. Some states offer benefits for ratings as low as 50% or 70%.
- Your 2025 Action Item: Contact your county assessor’s office or a local veterans service officer to understand the specific exemptions available in your area. This is a critical step in budgeting for your new home.
3. Adapted Housing Grants
For veterans with specific, severe service-connected disabilities, the VA offers grants to help purchase, build, or modify a home for barrier-free living. The two primary grants are:
- Specially Adapted Housing (SAH) Grant: For veterans with certain permanent, service-connected disabilities. The maximum grant amount is adjusted annually.
- Special Home Adaptation (SHA) Grant: For veterans with certain permanent, service-connected disabilities to help adapt a home.
Planning for 2026: If you are considering building a new, accessible home, now is the time to explore these grants. The application and approval process takes time, so starting in 2025 allows you to be ready for a 2026 build.
4. No Private Mortgage Insurance (PMI)
This is a core benefit for all eligible VA borrowers, but it’s especially impactful for disabled veterans. Unlike conventional loans that require PMI if you put down less than 20%, VA Loans never require PMI. This results in a lower monthly payment, making homeownership more sustainable on a fixed income.
5. Relaxed Credit and Debt-to-Income (DTI) Requirements
The VA takes a more holistic view of a veteran’s financial profile compared to conventional lenders. While lenders will still have their own standards, the VA’s flexible guidelines can be a game-changer for veterans whose medical circumstances may have impacted their credit history.
How to Prepare Now for Your 2025/2026 Home Purchase
Knowledge is power. As you consider using your VA Home Loan benefit, here’s how to get started:
- Get Your COE (Certificate of Eligibility): This confirms your loan entitlement. Your funding fee exemption will be noted here if you are eligible.
- Check Your State Benefits: Research your specific state’s property tax relief programs for disabled veterans.
- Get Pre-Approved: A pre-approval from VAFastLoans.com shows sellers you are a serious buyer and helps you understand your true budget.
Your service and sacrifice have earned you these benefits. Don’t leave them on the table. The VA Home Loan program is designed to reward your courage and help you achieve the dream of homeownership.
If you’re a disabled veteran looking to buy, refinance, or build a home, the team at VAFastLoans.com is here to help, click here to check your eligibility. We specialize in guiding veterans through the process and ensuring they access every benefit they deserve.