Your Complete Guide to VA Housing Support Programs

If you’re a veteran or service member, you may have heard about VA housing benefits. The Department of Veterans Affairs offers a wide range of housing support that goes far beyond just helping you buy a home. This guide will explore the different types of assistance available, from home loans to grants for disabled veterans and critical support for those facing homelessness.

Understanding VA Home Loans

The most well-known VA housing benefit is the home loan guaranty program. It’s a common misconception that the VA directly lends money. Instead, the VA guarantees a portion of the loan made by a private lender, like a bank or mortgage company. This guarantee protects the lender from loss if you fail to repay the loan, which allows them to offer you better terms.

Key Benefits of VA-Guaranteed Home Loans:

  • No Down Payment: For most qualified veterans, this is the biggest advantage. You can often purchase a home with no money down.
  • No Private Mortgage Insurance (PMI): Conventional loans typically require you to pay PMI if your down payment is less than 20%. VA loans do not have this requirement, which can save you a significant amount of money each month.
  • Limited Closing Costs: The VA limits the closing costs that lenders can charge to veteran borrowers.
  • Reusable Benefit: You can use your VA home loan benefit multiple times throughout your life.

Types of VA Home Loans:

  • Purchase Loan: Helps you purchase a home at a competitive interest rate.
  • Cash-Out Refinance Loan: Allows you to take cash out of your home equity to pay for things like school, home improvements, or paying off debt.
  • Interest Rate Reduction Refinance Loan (IRRRL): Also called the Streamline Refinance Loan, this helps you obtain a lower interest rate by refinancing your existing VA loan.
  • Native American Direct Loan (NADL) Program: This program provides direct loans to eligible Native American veterans to finance the purchase, construction, or improvement of homes on Federal Trust Land.

To get started with a VA loan, you will first need a Certificate of Eligibility (COE) to prove to the lender that you qualify for the benefit based on your service.

Housing Grants for Disabled Veterans

For veterans with certain service-connected disabilities, the VA offers grants to help build, buy, or modify a home to meet their needs. These grants can provide life-changing independence and do not need to be repaid.

Specially Adapted Housing (SAH) Grant

The SAH grant helps veterans with specific, severe disabilities live independently in a barrier-free environment. This grant can be used to:

  • Construct a specially adapted home on land you already own.
  • Build a home on land you plan to buy.
  • Remodel an existing home to make it specially adapted.
  • Apply the grant against the unpaid principal mortgage balance of an adapted home you already purchased without VA grant assistance.

Eligibility is typically for veterans with disabilities such as the loss of use of both legs, blindness in both eyes, or certain severe burns.

Special Home Adaptation (SHA) Grant

The SHA grant is for veterans with specific service-connected disabilities that are less severe than those required for the SAH grant. This includes the loss of use of both hands, certain respiratory issues, or severe burn injuries. The grant can be used to:

  • Adapt an existing home that you or a family member own.
  • Adapt a home you intend to purchase.
  • Purchase a home that has already been adapted.

Temporary Residence Adaptation (TRA) Grant

If you are living temporarily in a family member’s home that needs modifications to meet your needs, the TRA grant may be available. This grant is for eligible veterans who qualify for either the SAH or SHA grant.

Support for Homeless and At-Risk Veterans

The VA is committed to ending veteran homelessness. They provide a range of services and initiatives designed to help veterans who are currently homeless or at risk of becoming homeless.

HUD-VASH Program

This is a collaborative program between the Department of Housing and Urban Development (HUD) and the VA. It combines HUD’s Housing Choice Voucher rental assistance for homeless veterans with case management and clinical services provided by the VA. Veterans in the HUD-VASH program rent privately owned housing and generally contribute no more than 30% of their income toward rent. A VA case manager helps them access support services for physical health, mental health, and substance use problems.

Supportive Services for Veteran Families (SSVF) Program

The SSVF program provides grants to private nonprofit organizations and consumer cooperatives that assist low-income veteran families. These organizations provide a range of services designed to promote housing stability. This can include financial assistance for rent, utilities, and moving costs, as well as help with finding and retaining housing.

Grant and Per Diem (GPD) Program

The VA’s GPD program funds community-based agencies that provide transitional housing and supportive services for homeless veterans. The goal is to help homeless veterans achieve residential stability, increase their skill levels and income, and obtain greater self-determination.

Help for Homeowners Facing Financial Hardship

If you have a VA-guaranteed home loan and are struggling to make your mortgage payments, the VA may be able to help you avoid foreclosure. It is critical to contact your mortgage servicer and the VA as soon as you think you might have a problem.

VA loan technicians can work with you and your lender to explore options, which may include:

  • Repayment Plans: Allowing you to catch up on missed payments over time.
  • Special Forbearance: A temporary pause or reduction in your payments.
  • Loan Modification: Changing the terms of your loan to make your monthly payments more affordable.

The VA’s goal is to help you stay in your home, and early communication is the most important step.

Frequently Asked Questions

How do I get a Certificate of Eligibility (COE)? You can apply for a COE online through the VA’s eBenefits portal, through your lender, or by mail. You will need to provide evidence of your military service, such as your DD-214.

Can I use my VA home loan benefit more than once? Yes. If you have fully paid off a previous VA loan, your full entitlement is typically restored. You may also be able to get another VA loan if you still have remaining entitlement.

Are surviving spouses eligible for VA housing benefits? Yes, in many cases. Unmarried surviving spouses of veterans who died in service or from a service-connected disability may be eligible for the home loan benefit. Other specific conditions may also apply.