VA Compensation: Understanding Payments for Service-Connected Disabilities

If you’re rated 100% disabled, your monthly tax-free payments are just the beginning. VA disability compensation doesn’t just cover bills—it can unlock powerful benefits that help you own a home, build equity, and secure long-term stability for your family.

VA compensation is a tax-free monthly payment provided to veterans who suffer from service-connected disabilities. These range from physical injuries to mental health conditions like PTSD.

• A 100% disability rating = $3,831.30/month (2025 base rate)
• Additional benefits available for dependents

Heads up: This income can be used to qualify for a VA home loan. And if you’re 100% disabled? You skip major fees other buyers pay.

If you receive VA disability compensation, especially at the 100% level, you unlock some major homeownership perks through the VA loan program:

• No VA funding fee (saves 1.4% to 3.6% of the loan amount)
• $0 down payment required
• No private mortgage insurance (PMI)
• Easier income qualification (VA disability counts as stable income)
• Possible property tax exemptions depending on the state

Real Talk: Most traditional buyers pay thousands upfront. You? With a 100% rating, you skip it all.

Yes—lenders accept VA compensation as stable, tax-free income. It helps you qualify for mortgage approvals more easily, even if your work income is limited or inconsistent.

Injuries or illnesses caused or worsened by your time on active duty. These include:

• Hearing loss, back injuries, PTSD
• Amputations, TBI, chronic conditions

The VA assigns a disability rating from 0% to 100%. The higher your rating, the higher your monthly compensation.

Base monthly rate: $3,831.30 for a single veteran. Rates increase with dependents.

See the full VA disability pay chart

When you receive VA comp and apply for a VA loan:

• You avoid loan fees others must pay
• Your disability pay counts toward loan income requirements
• You gain access to lower interest rates and no PMI

If you're buying a home, don't waste thousands on real estate agent commissions. reAlpha offers a modern, commission-free way to purchase a home—perfect for veterans who want more buying power and less stress.

• 100% commission-free buyer representation
• Personalized support from licensed agents
• Streamlined digital home search experience
• Veteran-friendly guidance at every step.

VA compensation isn’t just a lifeline. It’s a launchpad.

With the right support, that check can mean:

• A mortgage-free home
• Tax savings and fee exemptions
• Real estate ownership and passive income

Think of your VA benefits as a master key. With it, you unlock a home, a future, and the freedom you fought for.

You receive full monthly compensation and may access VA home loan perks and property tax relief.

Yes. It qualifies as a steady, reliable income with most VA-approved lenders.

Yes—and they skip the VA funding fee entirely.

Absolutely. Many veterans use their compensation to meet loan eligibility.

• Priority VA healthcare
• Commissary and exchange access
• Education support for dependents
• State-level housing, tax, and license perks

Your service earned you more than a monthly deposit.

It earned you the right to own a home, build wealth, and live with dignity. Whether you’re buying your first home or making your first investment, your VA disability compensation is the starting line—not the finish.

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Disclosure: Be My Neighbour and reAlpha are affiliated entities offering VA-focused and commission-free services for veterans. No compensation is exchanged for referrals between these entities. All services are offered in compliance with RESPA and other applicable federal regulations.