VA Housing Benefits
The VA does not lend money for homes. It guarantees private-lender loans that allow zero down payment and no private mortgage insurance, and it pays grants directly to disabled veterans whose service-connected conditions require an adapted home. Five core programs, each fitting a different situation.
VA Loan (Purchase, Build, or Cash-Out Refinance) Zero down
The VA Loan guarantees a portion of a private-lender mortgage, which lets the lender offer zero down payment and waive private mortgage insurance for the veteran. The VA itself does not issue the loan; you obtain it from a participating private lender (bank, credit union, mortgage company).
Loan amount is generally limited by lender underwriting (debt-to-income, credit score, appraisal) rather than a hard ceiling. There is no maximum loan amount for veterans with full entitlement, though the VA only guarantees the first portion of the loan; lenders may require larger down payments above conforming limits.
Interest Rate Reduction Refinance Loan (IRRRL) Streamline refi
A streamlined refinance available only to homeowners who already have a VA Loan. The IRRRL trades the existing VA Loan for a new one with a lower interest rate or different term, with reduced paperwork and no new appraisal required in most cases.
If you want to take cash out of the equity, the IRRRL is the wrong product; use a VA Cash-Out Refinance instead (which is a separate VA Loan product with full underwriting).
Native American Direct Loan (NADL) Trust land
Unlike the regular VA Loan (which is a guarantee on a private-lender loan), the NADL is a direct loan from the VA, available to Native American veterans purchasing, constructing, or improving a home on federal trust land.
The tribal MOU requirement is critical: the VA can only issue an NADL on trust land of a tribe that has signed a current Memorandum of Understanding with the VA. Check the VA's NADL page for the current tribal MOU list.
Specially Adapted Housing (SAH) Grant Severe disability
A grant (not a loan) paid directly to a veteran with severe service-connected disabilities to buy, build, or modify a home to accommodate the disability. This is the largest of the VA housing grants and the one with the strictest disability criteria.
Eligibility (service-connected, any one of):
- Loss, or loss of use, of both lower extremities, such as to preclude locomotion without aids.
- Blindness in both eyes (5/200 visual acuity or less) combined with loss or loss of use of one lower extremity.
- Loss, or loss of use, of one lower extremity combined with residuals of organic disease or injury that preclude locomotion without aids.
- Loss, or loss of use, of one lower extremity combined with loss or loss of use of one upper extremity that preclude locomotion without aids.
- Loss, or loss of use, of both upper extremities at or above the elbow.
- Severe burn injury.
- Amyotrophic lateral sclerosis (ALS) rated 100 percent.
Special Home Adaptation (SHA) Grant Moderate disability
A smaller grant for veterans whose service-connected disabilities require adaptations to a home they own or that a family member owns. Used to modify an existing home, not to purchase or build a new one.
Eligibility (service-connected, any one of):
- Blindness in both eyes with 5/200 visual acuity or less.
- Anatomical loss, or loss of use, of both hands.
- Severe burn injury.
- Certain respiratory or breathing injuries.
Home Improvements and Structural Alterations (HISA) Smaller scope
A VA Healthcare-administered benefit (not a VBA grant) that pays for medically necessary home improvements: ramps, widened doorways, accessible bathrooms, and similar alterations needed for the veteran's prescribed treatment. Administered through the VA Medical Center prosthetics office.
HISA is smaller than SAH or SHA but can be used in combination with them for the portion of work the larger grants do not cover. HISA does not require the severe disability thresholds of SAH or SHA.
Side by side
| Program | Form | What it does | Disability tied? |
|---|---|---|---|
| VA Loan | Through lender; COE from VA | Guarantees private-lender mortgage; zero down, no PMI | No, but funding fee is waived for any disability compensation recipient |
| IRRRL | Through lender | Streamline refinance of existing VA Loan to lower rate | No, but reduced funding fee for disability compensation recipients |
| NADL | VA Form 26-1880 | Direct VA loan for Native American veterans on federal trust land | No, but reduced funding fee for disability compensation recipients |
| SAH | VA Form 26-4555 | Grant for buying / building / adapting home for severe service-connected disability | Yes, specific severe SC disabilities required |
| SHA | VA Form 26-4555 | Grant to adapt an existing home for moderate service-connected disability | Yes, specific SC disabilities required |
| HISA | Through VA Medical Center | Medically necessary home modifications prescribed by VA provider | Higher cap for service-connected; available to non-SC with medical need |
Funding-fee exemption (the most-missed benefit)
The VA Loan funding fee is a one-time payment (typically 1.25 to 3.3 percent of the loan amount) that funds the VA Loan guarantee program. The fee is waived for:
- Veterans receiving VA disability compensation at any rate (10% or higher).
- Veterans entitled to receive VA disability compensation but for receipt of military retirement pay (CRSC concurrent receipt).
- Recipients of the Purple Heart.
- Surviving spouses receiving DIC.
On a $400,000 mortgage at the standard 2.15% first-use funding fee, the exemption is worth $8,600 of out-of-pocket savings.
Where to start for each program
- VA Loan / IRRRL: request a Certificate of Eligibility (COE) through your VA-approved lender or directly at VA.gov. The lender handles the rest.
- NADL: apply through your VA Regional Loan Center. Confirm your tribe's MOU status first.
- SAH or SHA: file VA Form 26-4555 with your VA Regional Loan Center. A VA Specially Adapted Housing agent will be assigned to your case.
- HISA: request a referral through your VA primary-care provider or directly through the VA Medical Center prosthetics office.
Sources and authority
- 38 U.S. Code Chapter 37 - Housing and small business loans
- 38 U.S. Code Chapter 21 - Specially adapted housing for disabled veterans
- 38 CFR Part 36 - Loan guaranty
- VA.gov - Home loans overview
- VA.gov - Housing grants for disabled veterans
Frequently asked questions
I already used a VA Loan once. Can I use it again?
Yes. The VA Loan benefit can be used multiple times. When the first loan is paid off (typically by selling the home or refinancing into a non-VA loan), your full entitlement is restored. You can also have two VA Loans simultaneously in some circumstances (for example, after a permanent change of station).
I am at 10% disability. Does the funding-fee waiver apply to me?
Yes. The waiver applies to any veteran receiving VA disability compensation, regardless of rating percentage. A 10% rating qualifies you for the waiver just like a 100% rating.
My VA Loan closed three years ago. The lender charged me the funding fee. I just got rated at 30%. Can I get a refund?
It depends on the effective date of your rating. If your rating's effective date predates the closing date, you may be entitled to a refund of the funding fee. Contact the VA Regional Loan Center with your closing disclosure and the rating decision; they handle these refund claims.
Can I combine SAH and SHA?
No. SAH and SHA are alternatives, not stackable. A veteran qualifies for SAH OR SHA based on the specific service-connected disabilities, not both for the same project. HISA can be used in combination with either.
Can a non-veteran assume my VA Loan if they buy my home?
Yes, with VA approval. A VA Loan is assumable: a qualified buyer (not necessarily a veteran) can take over the existing loan at the existing rate. Approval requires the buyer to meet basic credit and income standards. If a non-veteran assumes the loan, your VA entitlement remains tied up in that loan until it is paid off.
Are SAH and SHA grants taxable?
No. Both grants are tax-free at the federal level, like VA disability compensation. They are not reported as income on your federal tax return.
My spouse is the veteran with severe service-connected disabilities. Can the SAH grant be used on a home owned by me?
Yes, in many cases. Recent law changes allow SAH grants to be used on a home owned by a family member where the veteran resides, as long as the adaptation serves the veteran's disability-related needs. The SAH agent assigned to the case can confirm what ownership structures the grant will support.
Related guides
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