Can I use VA disability income to qualify for a VA loan?

Yes, you can use VA disability income to qualify for a VA loan. VA disability compensation is tax-free, so lenders gross it up 25% for DTI calculation. Example: $2,400/month VA disability × 1.25 = $3,000/month qualifying income. This is a significant advantage — the 25% gross-up increases your buying power by approximately $100,000. To use VA disability income: 1) Provide your VA disability award letter (available at VA.gov) showing your monthly compensation and disability rating. 2) The lender verifies that the income is permanent (VA disability is considered ongoing). 3) The lender applies the 25% gross-up to your monthly disability payment. 4) The grossed-up amount is added to your other income (employment, pension, Social Security) for total qualifying income. Example: A veteran with $2,400/month VA disability (grossed up to $3,000) + $3,000/month employment income = $6,000/month total qualifying income. At 43% DTI and 6% rate, this qualifies for a $222,000 home with 0% down and no funding fee. All 10 lenders in our top 10 accept VA disability income with 25% gross-up.

What is the VA funding fee waiver for disabled veterans?

The VA funding fee is a one-time fee charged on VA loans to help fund the VA loan program. For most veterans, the funding fee is 1.4-3.6% of the loan amount. However, veterans with a service-connected disability rating of 10% or higher are completely exempt from the funding fee. This is one of the most valuable VA benefits. Savings examples: 1) $300,000 loan — funding fee waived saves $5,250-$10,800 (depending on down payment and loan type). 2) $400,000 loan — saves $5,600-$14,400. 3) $500,000 loan — saves $7,000-$18,000. 4) $750,000 loan — saves $10,500-$27,000. To get the waiver: 1) Obtain your VA disability award letter showing a 10%+ rating. 2) Provide the award letter to your lender. 3) The lender automatically waives the funding fee — no additional paperwork needed. 4) The waiver applies to both purchase and refinance VA loans. 5) The waiver applies to all subsequent VA loans (not just the first). The funding fee waiver is automatic — your lender processes it as part of the loan application. All 10 lenders in our top 10 process the funding fee waiver for disabled veterans.

What is the VA Specially Adapted Housing (SAH) grant?

The VA Specially Adapted Housing (SAH) grant is a federal grant that provides up to $117,014 (2026 amount) for disabled veterans to buy, build, or modify a home to make it accessible for their disabilities. The grant does not need to be repaid — it is a benefit, not a loan. Eligibility: veterans with specific severe service-connected disabilities, including: 1) Loss of use of both lower extremities. 2) Blindness in both eyes with loss of use of one lower extremity. 3) Loss of use of one lower extremity together with residuals of organic disease or injury. 4) Certain severe burns or injuries. Uses: 1) Build a new specially adapted home. 2) Buy an existing adapted home. 3) Modify an existing home for accessibility (wheelchair ramps, wider doorways, roll-in showers, lowered countertops, stair lifts). 4) Pay off an existing adapted home mortgage. How to apply: 1) Submit VA Form 26-4555 (Application in Acquiring Specially Adapted Housing or Special Home Adaptation Grant). 2) The VA reviews your disability rating and medical needs. 3) If approved, the grant funds are disbursed. 4) The grant can be used with a VA loan for the remaining purchase price. Example: A veteran buys a $400,000 accessible home. SAH grant covers $117,014. VA loan covers the remaining $282,986 with 0% down and no funding fee. Total out-of-pocket: $0 down + closing costs.

Can a disabled veteran buy a home with no money down?

Yes, a disabled veteran can buy a home with no money down using a VA loan. Here is how: 1) VA loan — 0% down, no PMI, no funding fee (if 10%+ disability rating). The VA loan is the best zero-down mortgage in the US. 2) SAH grant — if the veteran qualifies for the Specially Adapted Housing grant ($117,014), this can cover a significant portion of the purchase price. 3) Combining VA loan + SAH grant — the SAH grant covers part of the purchase, and the VA loan covers the rest with 0% down. Example: Buy a $400,000 accessible home. SAH grant = $117,014. VA loan = $282,986 (0% down on the remaining balance). Total out-of-pocket: $0 down + closing costs ($3,000-$8,000). 4) State DPA programs — many states offer down payment assistance grants ($5,000-$35,000) that can cover closing costs. 5) Lender credits — some VA lenders offer closing cost credits to reduce out-of-pocket expenses. Best VA lenders for disabled veterans: Rocket Mortgage (5.875%, funding fee waiver, SAH/SHA experienced), Guaranteed Rate (5.875%, SAH/SHA specialists), and U.S. Bank (6.000%, VA disability experienced).

How much can a disabled veteran borrow with a VA loan?

A disabled veteran can borrow up to the conforming loan limit with a VA loan, with 0% down. In 2026, VA loan limits are: 1) Standard limit — $806,500 for a single-family home in most areas. 2) High-cost area limit — up to $1,209,750 in high-cost areas (San Francisco, New York, Los Angeles, Seattle, Honolulu). 3) No loan limit for veterans with full VA entitlement — as of January 2020, veterans with full entitlement can borrow any amount with 0% down (the VA guarantees 25% of the loan amount up to the conforming limit, and lenders can go above with no down payment if the veteran has full entitlement). 4) Jumbo VA loans — above $806,500, some VA lenders offer jumbo VA loans with 0% down (if full entitlement) or 25% down on the amount above the conforming limit (if reduced entitlement). Example: A disabled veteran with full entitlement can buy a $1,000,000 home with 0% down and no funding fee. The VA loan covers the full $1,000,000 at 5.875% with no PMI. Monthly P&I = $5,918. Best VA jumbo lenders: Guaranteed Rate (5.875%, jumbo VA specialist), Rocket Mortgage (5.875%, jumbo VA), and U.S. Bank (6.000%, jumbo VA).

Can I refinance my VA loan with disability benefits?

Yes, you can refinance your VA loan using disability benefits. There are two VA refinance options: 1) VA Streamline Refinance (IRRRL — Interest Rate Reduction Refinance Loan) — simplifies the refinance process with reduced documentation. No income verification, no credit check (in some cases), no appraisal, and no funding fee (for disabled veterans). Available if you are refinancing an existing VA loan to a lower rate. The IRRRL is the easiest refinance available. 2) VA Cash-Out Refinance — allows you to refinance any mortgage (VA, conventional, FHA) into a VA loan and take cash out. Requires full income documentation and credit check. Max LTV: 100% (0% equity required). No funding fee for disabled veterans. Example: A disabled veteran has a $350,000 VA loan at 7%. They refinance to 5.875% with an IRRRL. Monthly savings = $269/month ($9,684 over 3 years). No closing costs (lender credit covers costs). No income verification. No appraisal. No funding fee. Process takes 15-30 days. Best VA refinance lenders for disabled veterans: Rocket Mortgage (5.875%, IRRRL specialist), Guaranteed Rate (5.875%, IRRRL + cash-out), and U.S. Bank (6.000%, VA refinance).

What credit score do disabled veterans need for a VA loan?

The VA does not set a minimum credit score — individual lenders do. The credit score requirements for VA loans are: 1) Rocket Mortgage — 620+ (some cases 580). 2) Guaranteed Rate — 620+ (some cases 580). 3) U.S. Bank — 640+. 4) New American Funding — 620+. 5) Wells Fargo — 620+. 6) Bank of America — 640+. 7) Chase — 620+. 8) loanDepot — 620+. 9) Better.com — 620+. 10) PNC Bank — 620+. The VA loan is the most forgiving loan type for credit — no minimum credit score is mandated by the VA, and lenders can accept scores as low as 580. Higher credit scores unlock better rates: 580+ — some VA lenders accept, 620+ — most VA lenders accept, 680+ — best VA rates, 740+ — lowest possible rates. If your credit is below 620, focus on: paying down credit card balances, disputing credit report errors, keeping utilization under 30%, and making all payments on time.

Can I use VA disability income plus employment income for a mortgage?

Yes, you can combine VA disability income with employment income for mortgage qualification. This is one of the most powerful strategies for disabled veterans. Here is how: 1) VA disability income — tax-free, grossed up 25%. Example: $2,400/mo × 1.25 = $3,000/mo qualifying income. 2) Employment income — W-2 or self-employment. Example: $3,000/mo ($36K/yr). 3) Combined qualifying income = $6,000/mo. 4) At 43% DTI and 6% rate, $6,000/mo qualifies for a $222,000 home with 0% down and no funding fee. 5) Other income sources that can be added: pension, Social Security (grossed up 25%), investment income, rental income (75% of gross). Example with multiple income sources: $2,400 VA disability (grossed up to $3,000) + $3,000 employment + $1,000 pension + $500 investment income = $7,500/mo qualifying income. This qualifies for a $277,000 home with 0% down. The key: document all income sources with award letters, pay stubs, W-2s, and tax returns. The lender combines all qualifying income for DTI calculation.

Are there property requirements for VA loans for disabled veterans?

Yes, VA loans have minimum property requirements (MPRs) that the property must meet. For disabled veterans, the VA may have additional considerations: 1) Standard VA MPRs — safe, structurally sound, sanitary, adequate heating, safe water, adequate sewage, roof with remaining useful life, safe electrical, adequate access. 2) Accessibility — if the veteran needs accessibility modifications, the property must either already have them or the veteran must use an SAH/SHA grant or FHA 203(k) loan to fund modifications. 3) VA appraisal — a VA-approved appraiser inspects the property to verify it meets MPRs. The appraiser notes any defects that need to be fixed before closing. 4) Termite inspection — required in most states (VA requires a termite inspection). 5) Well and septic — if the property has a well or septic system, they must be tested and functional. 6) Condominiums — must be on the VA-approved condo list. 7) Manufactured homes — must be on a permanent foundation and meet HUD code. 8) New construction — must have a 1-year VA builder warranty or 10-year structural warranty. If the property does not meet VA MPRs, the seller must make repairs before closing, or the veteran can use an FHA 203(k) or Fannie Mae HomeStyle renovation loan to finance repairs.

Can a surviving spouse of a disabled veteran get a VA loan?

Yes, an unremarried surviving spouse of a veteran who died from a service-connected disability can get a VA loan with the same benefits as the veteran, including: 1) 0% down payment. 2) No PMI. 3. No VA funding fee (surviving spouses are exempt). 4. VA disability income (if the spouse receives DIC — Dependency and Indemnity Compensation, which is tax-free and grossed up 25%). To qualify: 1) Obtain a Certificate of Eligibility (COE) from the VA as a surviving spouse. 2) Provide the veteran's death certificate showing the death was service-connected. 3) Provide proof of DIC benefits (if applicable). 4) Meet lender credit and income requirements. 5) The surviving spouse must be unmarried (remarriage after age 57 may still qualify under certain conditions). The surviving spouse can also use SAH/SHA grants if the veteran would have qualified. DIC income in 2026: approximately $1,612/month (base rate) + additional amounts for dependents. Grossed up 25% = $2,015/month qualifying income. Combined with other income (employment, pension, Social Security), a surviving spouse can qualify for a meaningful home purchase with 0% down and no funding fee.

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MORTGAGE22 min read2026-08-15

Marcus Reid

Mortgage Strategist & HELOC Specialist · NMLS #1985623, CRMP

VA Disability Mortgage Guide 2026: Top 10 Lenders Compared (Disabled Veteran Home Loans)

Rates Updated: June 27, 2026

Disabled veterans have access to the most powerful mortgage benefits in the United States. VA disability compensation counts as qualifying income for a VA loan (grossed up 25% because it is tax-free), the VA funding fee is completely waived for veterans with a 10%+ disability rating (saving $5,600-$14,400 on a $400K loan), and the VA offers Specially Adapted Housing (SAH) grants up to $117,014 for accessible home modifications. In 2026, disabled veterans can buy a home with 0% down, no PMI, no funding fee, and use their tax-free disability income for qualification. A veteran with $2,400/month VA disability (grossed up to $3,000) + $2,000/month pension = $5,000/month qualifying income, which qualifies for a $185,000 home with zero down. We compared the top 10 VA lenders for disabled veterans and ranked them based on VA disability income treatment, funding fee waiver processing, SAH/SHA grant expertise, VA loan experience, and customer satisfaction. Whether you are a disabled veteran buying your first home, modifying an existing home for accessibility, or refinancing your current VA loan, this guide covers every benefit available to you in 2026. [cta:Compare today's best VA disability mortgage rates|mortgage]

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Top 10 VA Disability Mortgage Lenders 2026: Side-by-Side Comparison

We compared the 10 best VA lenders for disabled veterans across 7 critical factors: starting rate, VA disability income gross-up, funding fee waiver expertise, SAH/SHA grant knowledge, min credit score, max LTV, and VA loan experience.

All 10 lenders waive the VA funding fee for disabled veterans and accept VA disability income with 25% gross-up. Compare VA disability lenders

Rank	Lender	Starting Rate	Disability Income Gross-Up	Funding Fee Waiver	SAH/SHA Grant Expertise	Min Credit	Get Started
1	Rocket Mortgage	5.875%	Yes — 25% gross up on VA disability	Yes — automatic waiver processing	High — experienced with SAH/SHA grants	620	Get VA disability mortgage
2	Guaranteed Rate	5.875%	Yes — 25% gross up on VA disability	Yes — streamlined waiver process	High — SAH/SHA grant specialists	620	Get VA disability mortgage
3	U.S. Bank	6.000%	Yes — 25% gross up on VA disability	Yes — automatic waiver processing	High — VA disability experienced	640	Get VA disability mortgage
4	New American Funding	6.125%	Yes — 25% gross up + Non-QM backup	Yes — waiver processing	High — VA + Non-QM options	620	Get VA disability mortgage
5	Wells Fargo	6.000%	Yes — 25% gross up on VA disability	Yes — dedicated VA team	High — SAH/SHA grant experienced	620	Get VA disability mortgage
6	Bank of America	6.000%	Yes — 25% gross up on VA disability	Yes — waiver processing	Moderate — VA disability accepted	640	Get VA disability mortgage
7	Chase	6.125%	Yes — 25% gross up on VA disability	Yes — waiver processing	Moderate — VA disability accepted	620	Get VA disability mortgage
8	loanDepot	6.125%	Yes — 25% gross up on VA disability	Yes — waiver processing	Moderate — VA disability accepted	620	Get VA disability mortgage
9	Better.com	5.990%	Yes — 25% gross up on VA disability	Yes — digital waiver processing	Low — digital, limited grant support	620	Get VA disability mortgage
10	PNC Bank	6.250%	Yes — 25% gross up on VA disability	Yes — waiver processing	Moderate — VA disability accepted	620	Get VA disability mortgage

Best Lenders for VA Disability Mortgage Guide

Nov 1

Rocket MortgageBEST RATE

Best online experience

5.750%

Min credit: 620

Better.com

No lender fees

5.625%

Min credit: 620

Veterans United

Best for VA loans

5.500%

Min credit: 580

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VA Disability Mortgage Benefits: Complete Breakdown

Disabled veterans receive extraordinary mortgage benefits. Here is a complete breakdown of every benefit available.

The funding fee waiver alone saves $5,600-$14,400 on a $400K loan. Combined with 0% down, no PMI, and 25% gross-up on disability income, disabled veterans have the best mortgage benefits in the US. See all VA disability benefits

Benefit	Details	Savings	Get Started
0% down payment	VA loans require no down payment — 100% financing up to conforming loan limits	Saves $12,000 on a $400K home (3% conventional down)	Get zero down VA loan
No PMI	VA loans have no private mortgage insurance (unlike conventional loans with <20% down)	Saves $200-$600/month on a $400K loan	Get no PMI VA loan
Funding fee waiver	Veterans with 10%+ disability rating are exempt from the VA funding fee (normally 1.4-3.6%)	Saves $5,600-$14,400 on a $400K loan	Get funding fee waiver
Disability income gross-up	VA disability compensation is tax-free, so lenders gross it up 25% for DTI calculation	Increases qualifying income by 25% ($2,400/mo → $3,000/mo)	Get disability income mortgage
SAH grant	Specially Adapted Housing grant up to $117,014 for accessible home purchase or modification	Up to $117,014 free grant (no repayment)	Get SAH grant
SHA grant	Special Housing Adaptation grant up to $23,444 for home adaptations	Up to $23,444 free grant (no repayment)	Get SHA grant
Lower interest rates	VA loans typically have 0.25-0.50% lower rates than conventional loans	Saves $60-$120/month on a $400K loan	Get low VA rate
No prepayment penalty	VA loans have no prepayment penalty — pay off early without fees	Save thousands by paying extra principal	Get VA loan
VA streamline refinance (IRRRL)	Disabled veterans can refinance with no income verification, no credit check (in some cases), and no appraisal	Reduce rate with minimal documentation	Get VA streamline
Assumable loan	VA loans are assumable — if you sell, the buyer can assume your low-rate VA loan	Competitive advantage when selling	Get assumable VA loan

VA Disability Income: How It Counts for Mortgage Qualification

VA disability compensation is one of the best income sources for mortgage qualification because it is tax-free and grossed up 25%. Here is how it works.

A veteran with $2,400/month VA disability gets $3,000/month qualifying income — a $600/month boost that adds $100,000+ in buying power. Calculate VA disability buying power

VA Disability Monthly	Grossed Up (×1.25)	Additional Income	Total Qualifying Income	Max Purchase Price (0% down, 6%)	Get Started
$1,000	$1,250	$0	$1,250	$46,000	Calculate buying power
$1,500	$1,875	$0	$1,875	$69,000	Calculate buying power
$2,000	$2,500	$0	$2,500	$92,000	Calculate buying power
$2,400	$3,000	$0	$3,000	$110,000	Calculate buying power
$2,400	$3,000	$2,000 (pension)	$5,000	$185,000	Calculate buying power
$2,400	$3,000	$3,000 (employment)	$6,000	$222,000	Calculate buying power
$3,000	$3,750	$2,000 (pension)	$5,750	$213,000	Calculate buying power
$3,600	$4,500	$3,000 (employment)	$7,500	$277,000	Calculate buying power

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VA SAH and SHA Grants: Accessible Housing for Disabled Veterans

The VA offers two grants for disabled veterans to buy, build, or modify accessible homes. Here is a complete comparison.

The SAH grant provides up to $117,014 for severely disabled veterans. The SHA grant provides up to $23,444 for veterans with specific disabilities. Both are grants — no repayment required. Get VA housing grants

Grant	Max Amount	Eligibility	Uses	Get Started
SAH (Specially Adapted Housing)	$117,014	Veterans with loss of use of both lower extremities, blindness + loss of use of one extremity, loss of use of one lower extremity + residuals of organic disease, certain burns/injuries	Build a new specially adapted home, buy an existing adapted home, modify an existing home for accessibility	Get SAH grant
SHA (Special Housing Adaptation)	$23,444	Veterans with blindness in both eyes, loss of use of one hand + blindness in one eye, certain burns/injuries	Adapt a home for accessibility (ramps, wider doors, accessible bathroom, modified kitchen)	Get SHA grant
Temporary Residence Assistance	$8,964 (SAH) / $1,792 (SHA)	Veterans living temporarily in a family member's home	Adapt a family member's home for the veteran's temporary residence	Get temporary residence assistance

How to Get a VA Disability Mortgage: Step-by-Step Guide

Getting a VA mortgage with disability benefits requires documenting your disability income and accessing all available benefits. Here is a step-by-step guide.

The key: obtain your VA disability award letter, request the funding fee waiver, and ask about SAH/SHA grants if you need accessibility modifications. Get your VA disability mortgage

Step 1: Obtain your VA disability award letter — shows your disability rating and monthly compensation (available at VA.gov)
Step 2: Confirm your disability rating is 10%+ — this qualifies you for the VA funding fee waiver (saves $5,600-$14,400)
Step 3: Get your Certificate of Eligibility (COE) from the VA — your lender can also obtain this for you
Step 4: Document all income sources — VA disability (tax-free, grossed up 25%), pension, employment, Social Security, investment income
Step 5: Check your credit score — aim for 620+ (most VA lenders require 620, some accept 580)
Step 6: If you need accessibility modifications — apply for the SAH grant ($117,014) or SHA grant ($23,444) through the VA
Step 7: Get pre-qualified with at least 3 VA lenders from our top 10 (soft credit pull, no impact)
Step 8: Compare offers — look at rate, funding fee waiver processing, and SAH/SHA grant expertise
Step 9: Choose a VA lender experienced with disability benefits and grants
Step 10: Close on your home — enjoy 0% down, no PMI, no funding fee, and disability income qualification

Mortgage Calculator

Home Price

Down Payment

20.0% down

Interest Rate (%)

Loan Term (years)

Loan Amount$320,000

Monthly Payment$1,867

Total Interest$352,276

Total Paid$672,276

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Today's Best Mortgage Rates

Updated November 1, 2026

Lender	Rate	APR	Fees	Best For	Action
Veterans United	5.500%	5.641%	$0	VA loan specialist	Check Rate
Navy Federal CU	5.500%	5.628%	$0	No PMI, military only	Check Rate
Better.com	5.625%	5.765%	$0	No lender fees	Check Rate
New American Funding	5.625%	5.780%	$1,095	FHA specialist, fast closing	Check Rate
Rocket Mortgage	5.750%	5.890%	$1,295	Best online experience	Check Rate
CrossCountry Mortgage	5.750%	5.895%	$1,500	Non-QM, complex files	Check Rate

Rates shown are illustrative. Actual rates vary by credit score, location, and loan details.

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Marcus Reid NMLS #1985623, CRMP

Mortgage Strategist & HELOC Specialist

NMLS #1985623 and CRMP. Former HELOC division manager at PNC Bank ($2B portfolio). 11+ years in home equity lending. Featured on CNBC.

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