VA Disability Benefits That Lower Your Housing Costs
Updated: Oct 5
A VA disability rating can lower what you pay to buy and own a home, but the benefits depend on your rating and where you live. As a military spouse for more than 30 years and an Arlington Associate Broker with 560+ transactions, I make sure veteran buyers know about these before they choose a lender or a county.
This article is general information, not tax, legal or financial advice.
No VA funding fee
Most VA borrowers pay a one-time funding fee. On a first-use purchase with less than 5% down, it's 2.15% of the loan, and 3.3% on a later use. You're exempt if you:
Receive VA compensation for a service-connected disability, at any compensable rating.
Are eligible for that compensation but receive retirement or active-duty pay instead.
Are a surviving spouse receiving Dependency and Indemnity Compensation.
Are a service member with a proposed or memorandum rating before closing, based on a pre-discharge claim.
Are an active-duty service member who received a Purple Heart, with proof before closing.
On a $500,000 loan, skipping a 2.15% fee saves $10,750. Make sure your Certificate of Eligibility shows the exemption before closing.
Virginia's property tax exemption
Virginia exempts the main home of a veteran with a 100% service-connected, permanent and total disability rating from real estate taxes. The exemption covers the house and up to one acre of land. A surviving spouse can keep it as long as they don't remarry, even after moving to a new home. Apply through your county or city, and bring your VA rating letter.
For comparison, Arlington's 2026 rate is $1.053 per $100 of assessed value. On a home assessed at $700,000, that's about $7,371 a year.
Other states have their own rules, and many offer partial exemptions at lower ratings. Check with the state and county where you're buying.
Grants for adapting a home
Veterans with certain service-connected disabilities may qualify for VA adapted housing grants to buy, build or change a home for accessibility. See VA's disability housing grants page for eligibility.
Tell your lender early
Property taxes are part of your monthly payment. If you'll qualify for an exemption, ask your lender how to account for it, and confirm the timing with the county.
In Northern Virginia
Arlington, Fairfax and Alexandria each process the exemption through their own real estate tax office. I'm glad to help you find the right office and estimate your payment for a specific home.
Sources: VA funding fee and exemptions; Va. Code § 58.1-3219.5; Arlington County tax rate; VA disability housing grants.
Last reviewed: October 2026
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