VA Disability Compensation: Turning Benefits Into Buying Power

Navigating the VA system can feel complex. If you’re a 100% disabled veteran, you’re likely receiving monthly tax-free compensation—but how does that income translate into real-life buying power?

Here’s what matters: That VA disability check isn’t just assistance. It’s a qualifying income source that can help you become a homeowner.

• VA disability pay is considered qualifying income for VA home loans.
• Tax-free compensation can increase your borrowing power through "grossing up."
• A 100% disability rating offers the highest monthly benefit—up to $4,500/month with dependents in 2025.
• VA loans require no down payment and, for disabled veterans, no funding fee.
• You can qualify for a mortgage without traditional employment if your VA pay meets income requirements.

The Department of Veterans Affairs calculates compensation based on:

• Disability Rating: Ranging from 10% to 100%
• Dependents: Additional pay for spouse, children, and parents‍
• Cost of Living Adjustments (COLA): Updated annually

All of the above is tax-free and eligible as mortgage income.

For updated compensation tables, visit the VA.gov Disability Rates Page.

VA disability pay is viewed by lenders as stable and reliable, even without employment. Here's how it stacks up:

Bonus: Lenders often "gross up" non-taxable income by 15% to 25%, increasing your borrowing capacity.

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Be My Neighbour specializes in VA loans and understands how to maximize your benefits during underwriting. No down payment, no funding fee, and expert guidance tailored for veterans.

Your VA disability rating is more than a number—it’s a tool for opportunity.

Whether you're ready to own your first home or invest in passive income, your benefits are designed to empower your future.

Use them wisely.

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Yes, it qualifies as stable income and is counted by VA lenders.

Based on your disability rating, number of dependents, and COLA adjustments.

Approximately $4,500/month if you have dependents.

Yes, as long as your total income meets the lender's minimum DTI thresholds.

Absolutely. It’s non-taxable, consistent, and counts fully toward loan qualification.

Be My Neighbour Mortgage is an Equal Housing Lender. NMLS ID #1743790. All loan applications are subject to underwriting approval. Terms and conditions apply. This material is for informational purposes only and does not constitute a loan offer or investment advice. Always consult with a licensed mortgage professional.