The 100 Percent Disabled Veteran Home Loan, commonly referred to as a VA (Veterans Affairs) loan, is more than just another mortgage program. It is a way for disabled veterans and their families to purchase their dream home. Designed to offer financial flexibility and support, this program is backed by the U.S. Department of Veterans Affairs, giving it a distinct edge over other mortgage programs.

One of the standout features of this loan is the absence of a down payment requirement. This is extremely helpful as most veterans find it difficult to save for a down payment during their time of service.  The VA loan program removes this obstacle, making it easier for eligible veterans to achieve their homeownership goals without having to fork out a large sum upfront.

VA loans also have competitive interest rates even with poor credit. With favorable terms offered by approved lenders including banks, credit unions, and mortgage companies, eligible veterans can capitalize on these attractive rates to make their dream homes a reality.

It’s important to note that while the VA loan program brings these appealing benefits, it also delivers comprehensive support and resources for dealing with unique circumstances that disabled veterans and their families may face in the pursuit of homeownership.

We have years of experience in helping veterans to purchase a home with a VA loan. Unlike most lenders, low credit scores are not an obstacle for us. If you complete this short quote form, one of our loan officers will contact you today to discuss your loan scenario.

Qualifying for a 100% Disabled Veteran Home Loan involves meeting specific criteria set by the VA. The service requirements are a fundamental aspect. Veterans must have served on active duty for a minimum period, typically meeting the minimum service requirements set by the VA. This is to ensure that those who have dedicated themselves to military service are eligible for this assistance.

Service Requirements

Eligibility requirements often include serving a certain number of continuous days on active duty, with special considerations given to veterans who served during wartime or in peacetime. Veterans need to have completed a full tour of duty or met specific service length requirements. It is important to understand these service requirements in detail because they form the foundation for eligibility.

Disability Rating

In addition to meeting the service requirements, having a disability rating of 100% as determined by the VA is another critical criterion. This disability rating plays a pivotal role in determining the level of financial support a disabled veteran may receive.

The disability rating reflects the extent of the veteran’s service-related disabilities. While other veterans may qualify for VA loans with lower disability ratings, the 100% rating is specifically tied to this particular loan program.

Certificate of Eligibility (COE)

Acquiring a Certificate of Eligibility (COE) from the VA is essential when seeking approval for the loan. This document verifies the veteran’s service history and disability status, serving as concrete evidence of their eligibility.

It’s important to remember that obtaining the COE is not just a formality, it is a required step that validates the veteran’s entitlement for a VA loan. This process ensures that all applicants meet the necessary criteria before proceeding with their home loan application.

If you are unsure about how to check into your eligibility, then contact us and we can help you.

The 100% disabled veteran VA home loan program offers a range of compelling benefits designed to support disabled veterans in their pursuit of homeownership. These benefits provide financial relief and offer peace of mind and stability to those who have served our country.

No Down Payment

A standout advantage of the 100 Percent Disabled Veteran Home Loan is the absence of a down payment requirement. This feature removes a significant financial barrier, allowing disabled veterans to secure a mortgage without the burden of paying a substantial upfront sum. For many disabled veterans, this can make the dream of homeownership a reality, providing an opportunity that may have seemed out of reach due to financial constraints.

Furthermore, by eliminating the need for a down payment, disabled veterans can preserve their savings for other essential needs, such as healthcare expenses or home modifications to accommodate disabilities. This financial flexibility empowers disabled veterans to allocate their resources where they are most needed, ensuring that homeownership does not come at the expense of vital necessities.

Exemption from PMI

In addition to the lack of a down payment requirement, all veterans are exempt from private mortgage insurance (PMI).  PMI is typically mandatory for conventional mortgages when the down payment is less than 20% of the property’s value, and mandatory on all FHA loans regardless of the down payment. Eliminating the need for PMI means veterans can qualify for a larger loan amount.

This exemption provides disabled veterans with significant financial relief and mitigates ongoing home loan costs. The elimination of PMI can lead to more affordable monthly mortgage payments, contributing to increased financial stability and reduced financial strain for disabled veterans and their families. Overall, this benefit serves as a testament to the recognition and support extended to those who have made significant sacrifices in service to their country.

Competitive Interest Rates

VA loans under the 100 Percent Disabled Veteran Home Loan program typically offer competitive interest rates compared to conventional mortgages. The availability of these competitive interest rates presents disabled veterans with an opportunity for lower monthly payments and overall reduced cost of homeownership.

By securing a mortgage with competitive interest rates, disabled veterans can achieve greater affordability while enjoying the benefits of homeownership. Lower monthly payments can contribute to improved financial security and enhanced quality of life for disabled veterans and their families.

Although VA loans typically have competitive interest rates, there are factors which will heavily impact the rate we can offer. The most important factor will be your credit scores. The higher the credit score, the lower the down payment. In addition, although VA loans do not require a down payment, if you were to put money down, your rate could improve.

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Special VA Loan Concessions for 100 Percent Disabled Veterans

It is unfortunate whenever a veteran has sustained service related injuries which resulted in a disability. Therefore, providing these additional exceptions for 100% disabled veterans is a huge help in the loan approval process.

Income Calculation Benefit – If you are receiving VA disability benefits, the income can be grossed up by 25%. For example, if your VA disability amount of $4,000 per month, then we can use $5,000 to help qualify for the loan. If you are receiving SSDI, you can gross up that amount by 15%.

No Funding Fee – VA loans have a 2.15% funding fee at closing for loans with a zero down payment. This fee will be waived for 100% disabled veterans.

Tax Return Waiver – If your sole source of income is VA disability and/or SSDI, then you will not be required to provide tax returns.

Property Tax Waiver – Once you purchase the home, you may be eligible for a full elimination of your property taxes. This decision is made at the local level and can result in a huge monthly savings. We have no ability to influence that decision.

No Minimum Credit Score – There will be no minimum credit score requirement if you have 12 months without derogatory marks on your credit report, 24 months of on time housing payments, and a debt to income ratio less than 55%.

These are huge benefits while applying for a VA loan. We can take a look at your scenario and will let you know how much you can qualify for.

What We Can Offer as Our Commitment to Veterans

Here is what you can expect if you decide to work with us:

Features	Benefits
Personalized Guidance	We provide personalized guidance for disabled veterans, taking into account their unique circumstances and needs.
Low Down Payment Options	We offer zero down payment options for disabled veterans, easing the financial burden of purchasing a home.
Flexible Eligibility Criteria	Understand the challenges faced by disabled veterans and offer more lenient eligibility criteria to accommodate their specific situation.
Exceptional Customer Service	Exceptional customer service while ensuring that disabled veterans receive the support and attention they need at every step of the loan process.

 

Dream Home Financing provides a wealth of resources specifically tailored to the needs of disabled veterans.  Contact us today and a loan officer will help you.

When applying for a home loan, your credit score becomes a critical factor. While the VA itself does not have a minimum credit score requirement, individual lenders typically do. This means maintaining a solid credit score not only boosts the likelihood of loan approval but may also result in more favorable terms. We can help you with scores down to 500.

Your credit history and behavior with debt play a significant role in determining your credit score. It’s essential to understand that your credit score isn’t just a number; it’s a reflection of your financial responsibility. The higher the score, the more confidence lenders will have in you as a borrower. To maintain good credit or improve it, it’s important to focus on several key aspects.

Alternative Home Loan Options for Veterans

When it comes to finding the right mortgage, veterans have more options than just VA loans. In fact, there are several alternatives that cater to veterans’ unique financial situations and needs. Here are just a few examples:

FHA (Federal Housing Administration) Loans

FHA loans are a popular choice for some veterans who want to buy a home. They require a minimum 3.5% down payment, which can be easier for some people to manage compared to conventional loans. Additionally, FHA loans often have lower interest rates, making them an attractive choice for veterans who may have already used up their VA loan entitlement or prefer the option for an FHA Streamline Refinance.

This streamlined refinance option allows veterans to refinance their existing FHA loan into a new one with less documentation and underwriting requirements.

USDA (United States Department of Agriculture) Loans

USDA loans are another alternative for veterans. These mortgages offer an option with zero-money down, making it an appealing choice for those who may not have a large down payment saved up. They also often come with lower interest rates compared to conventional loans. However, there are certain restrictions such as income caps, household earning limits, and property location requirements, so it’s important to carefully assess your eligibility. Read more about USDA loans here.

Conventional Loans Tailored to Veterans’ Needs

Conventional loans can also be tailored to meet the specific needs of veterans. For example, the Navy Federal Credit Union offers the Military Choice Loan, designed specifically for service members and veterans. This type of loan has no down payment requirement and features a fixed interest rate.

Bank Statement Loans

For veterans who may have non-traditional sources of income or wish to purchase investment properties, bank statement loans could be a viable option. Instead of using traditional W2s or tax paperwork to verify income, these loans rely on bank statements to assess a borrower’s financial stability.

The bank statement loan is the number one option for self employed veterans who cannot verify their income using tax returns. If this is your situation, we can help with a bank statement loan too. Read more about bank statement loans.

Frequently Asked Questions

What are the benefits of a 100 percent disabled veteran home loan?
There are many benefits of a 100 percent disabled veteran home loan including no funding fee and competitive interest rates.

Can I use a 100 percent disabled veteran home loan to purchase or refinance a property?
You can use a 100% disabled veteran VA loan to purchase, refinance or even pull cash equity out of your property.

Are there any additional fees or costs associated with this type of loan?
There are no addition costs of fees and in fact some will be waived for you as a disabled veteran.

Are there any specific credit score requirements for this type of loan?
There are no minimum credit score requirements for a disabled veteran mortgage, but there may be some items on your credit report that need to be dealt with.

Can I use a 100 percent disabled veteran home loan more than once? 
You can get a VA loan more than once, but you cannot have two VA loans open at the same time.

What is the maximum loan amount for a VA loan when you are 100 percent disabled?
There is no maximum loan amount for a VA loan regardless of whether you are disabled.