Veterans with a service-connected disability rating are eligible for enhanced VA loan benefits that most veterans do not fully understand. From the VA funding fee waiver to specially adapted housing grants, these benefits can translate to tens of thousands of dollars in savings. At MaxVALoan, we make sure every disabled veteran we work with receives every benefit they have earned.
What It Means
The VA provides additional home loan benefits to veterans with a service-connected disability rating of 10% or higher. The most impactful is the complete waiver of the VA funding fee. Beyond the basic loan program, disabled veterans may also be eligible for Specially Adapted Housing (SAH) and Special Housing Adaptation (SHA) grants for veterans with severe disabilities. See also our guide on property tax exemptions for disabled veterans.
Requirements
- VA Funding Fee Waiver: Veterans with a service-connected disability rating of any percentage (including 0% with a compensable rating) are exempt. This saves $2,150–$11,550 depending on loan amount and use.
- Surviving spouses: Surviving spouses of veterans who died from service-connected causes also receive the funding fee waiver
- SAH Grant (2026): Up to $117,014 for veterans with severe mobility impairments to build, modify, or purchase an accessible home
- SHA Grant (2026): Up to $23,444 for less severe disabilities requiring home modifications
- HISA Grant: Up to $6,800 for home improvements and structural alterations for medical needs
- Your disability rating must be established with the VA before closing to receive the funding fee waiver
Examples
Funding fee waiver: A veteran with a 30% disability rating buys a $400,000 home. Standard funding fee (first use, 2.15%) = $8,600. With the waiver: $0. That $8,600 stays in his pocket or is not added to his loan balance.
SAH grant: A veteran with a 100% P&T rating lost a limb in combat. He uses a $117,014 SAH grant to purchase an accessible home with wider doorways, roll-in shower, and ramp access — modifications covered entirely by the grant.
Tips
- If your disability claim is pending at time of application, you may still receive the waiver retroactively if approved before closing.
- Even a 10% rating saves you the full funding fee — make sure your rating is established and on file before your loan closes.
- Apply for SAH/SHA grants through VA Form 26-4555, separate from your home loan application.
- Property tax exemptions for disabled veterans can reduce your monthly payment significantly — see our full guide.
Frequently Asked Questions
Q: What if my disability rating was just approved — can I still get the waiver?
A: If your rating is approved before closing, yes. If it is approved after closing, you may be entitled to a refund of the funding fee — contact your lender and the VA immediately.
Q: Do I need to disclose my disability to my lender?
A: You are not required to disclose the nature of your disability, only that you have a service-connected rating that qualifies for the waiver. Your VA award letter is the documentation needed.
Q: Are SAH and SHA grants taxable income?
A: No — both grants are tax-free. They do not count as income for VA loan qualification either. Ask our team about maximizing all benefits available to you.
