VA disability and your home
A VA disability rating can waive your funding fee, lower your California property taxes and open housing grants. Here's how it fits together, and how to file.
How a rating helps homeowners
No VA funding fee
Receiving VA disability compensation means no funding fee on your VA loan. On a $700,000 first-use purchase with nothing down, that’s $15,050 you don’t pay.
2.15% first-use rate, less than 5% down.
Funding fee refund
Rated after you closed? If the effective date is before closing, call 877-827-3702 about a refund.
California property tax
Rated 100%, or paid at 100% for unemployability? The 2026 Disabled Veterans’ Exemption lowers your assessed value by $180,671, or $271,009 for lower-income households.
Adapted housing grants
SAH (up to $126,526 in FY2026) and SHA (up to $25,350) help buy, build or change a home for qualifying disabilities.
Filing a VA disability claim
- Get free help if you want it. Accredited VSO representatives and California County Veteran Service Offices help at no cost. Find a representative
- Protect your start date. Starting the claim online on VA.gov sets your effective date. On paper, file an intent to file (VA Form 21-0966) first; you then have 1 year to finish.
- Gather evidence. VA and private medical records and supporting statements help, but aren’t required to file.
- File. Online, by mail with VA Form 21-526EZ, in person, or through your representative. VA: how to file
- Separating soon? Benefits Delivery at Discharge lets you file 180 to 90 days before you leave the military.
- Track it. VA claim status tool
Sources: VA.gov disability claim pages, updated November 6, 2026; checked November 10, 2026.
Good to know
Does a VA disability rating help when I buy a home?
Yes. Receiving compensation waives the VA funding fee, and a 100% rating can lower California property taxes.
Should I file my disability claim before I buy?
That's your call, but timing matters: a proposed or memorandum rating must be dated before closing to waive the fee, and a refund needs an effective date before closing.
How do I protect my effective date?
Start the claim online on VA.gov, or file an intent to file. You then have 1 year to complete the claim.
Is help filing a VA claim free?
Yes, from accredited VSO representatives and County Veteran Service Offices. Attorneys and claims agents can charge.
What is a combined disability rating?
VA combines ratings with its own table rather than adding them, rounded to the nearest 10%, and the total can't exceed 100%.
VA benefits resource center · Funding fee exemption and refund · Get your Certificate of Eligibility · Your LES and your mortgage
MTG Wholesale is a private mortgage broker. We are not affiliated with or endorsed by the U.S. Department of Veterans Affairs, the Department of Defense or any branch of the military. VA-backed loans are subject to eligibility, lender approval and appraisal. Not an offer of credit.