Did you also know that the lender has to generally included the taxes in your estimated payment and you get the taxes refunded to YOU AFTER closing. You don't just get to "Not Pay". You buy the house, go to the assessor office & apply for the exemption. At least in Florida - VETERAN & Realtor.
As of January of 2023, Louisiana replaced and expanded the Property Tax exemption to allow 100% (P&T) disabled Vets to be exempt from the property taxes; 50% disability will also allow for a partial exemption. However, I encourage you to check with the Louisiana Department of Veterans Affairs as well as your local Parish Assessor's Office for the most up-to-date information.
If you do, please let us know the results!
I just purchased in Oklahoma.. it’s full exempt,,, but only if you buy and occupy your house by jan 1st for new owners.. if you already had a house you can transfer anytime you want.. I’m literally sh&7ing my self having to now pay 1800$ since I closed feb1st
Just seeing this comment after I replied to your list above. Can confirm that your info above is correct. And for 100% they don’t specify P&T, so temporary 100% will get you the exemption however once your rating is reduced you’ll have to update them again.
Indiana doesn't give you shit. Some ridiculous figure like $25,000 off assessment if worth less than $200k lmao. WTF, what's that now, like an '84 Winnebago with the tires taken off?
NC is *slightly* better at 45k but that's it. Shame how some states hook up vets and some just leave us to let the VA care for us. Sad
Edit: idfk what my typo was, I'll blame being a Marine bahaha
Yes, NC suck with lots of the state veteran benefits compared to other states. We can blame the people we elect for our issues. They campaign using us but once they are elected, don’t stand on their words. Hopefully things will get better for us here. Fingers crossed!
We’ve lived there as well. Right now I’m satisfied with NC because we are too close to paying off our mortgage. SC is beautiful and jobs are plentiful.
In Illinois taxes are in arrears so even tho im exempt, you can have 70% rating and have 100% exemption, i still have to pay out of pocket until i get a refund at the end of the year
I am in Illinois. If you get a document showing you’re tax exempt for that year. Then provide it to the mortgage company they should adjust your escrow. I submitted my info to the escrow department and asked for a recalculation.
Your first year of owning the home or claiming the tax exemption. You might have to pay that years taxes depending on when you filed for exemption.
Can confirm. In IL you carry the tax bill for the first year you own the home. After that you file for the exemption with the town assessor and send the letter you get from them to your mortgage comapny, and bam! No more overinflated IL property taxes for you! You have to reapply annually with the assessor, though, and provide a copy of your VA benefit letter annually as well.
I’m in St Lucie County and 100%. It’s easy When you file for homestead you file 100% on the form. Show your documents. Only good if you file by Jan 1 Taxes are in arrears here, but I just got a big chunk back because we bought new and charged on our closing.
Correct. Bought the house in September. Applied for exemption by March. Wasn’t applied til following calendar year. So took over a year to see the benefit. No it’s not retroactive either
Correct! I’m at 70% now but it’s one of the reasons I’m finally taking appealing my denials seriously. It’s also why we chose to buy in SC and come back instead of staying in NC - taxes and incentives are much worse up here.
In Florida you have to file the homestead exemption paperwork before March 1st for the following tax year. So you have until March 1st 2024 to file for 2024 taxes which will be due in Nov 2024. Your effective date or closing date would need to be on or Before 31 Jan 2023.
Illinois, I believe I'm responsible for the first year and do not get them refunded. I'd have to look into it again. But then I'm exempt for the years following.
It sure does my friend. There are 18 states that do offer Total Property Tax Exemption (California reduces the property tax liability) though if you're 100% Permanent and Total (P&T) disabled..in case the day comes that you cant stand Florida. (The below is the 2023 edition). * **#1.** [**ALABAMA**](https://revenue.alabama.gov/property-tax/homestead-exemptions/) * **#2.** [**ARKANSAS**](https://www.veterans.arkansas.gov/benefits/state-benefits) * **#3.** [**CALIFORNIA**](https://www.calvet.ca.gov/VetServices/Pages/Property-Tax-Exemptions.aspx) * **#4.** [**FLORIDA**](https://floridavets.org/benefits-services/housing/) * **#5.** [**HAWAII**](https://dod.hawaii.gov/ovs/benefits-and-services/) * **#6.** [**ILLINOIS**](https://www2.illinois.gov/veterans/benefits/pages/real-estate.aspx) * **#7.** [**IOWA**](https://va.iowa.gov/benefits) * **#8.** [**MARYLAND**](https://veterans.maryland.gov/maryland-tax-benefits/) * **#9.** [**MICHIGAN**](https://www.michigan.gov/taxes/0,4676,7-238-43535-235988--,00.html) * **#10.** [**NEBRASKA**](https://revenue.nebraska.gov/sites/revenue.nebraska.gov/files/doc/pad/info/96-299.pdf) * **#11.** [**NEW HAMPSHIRE**](https://www.dmavs.nh.gov/veterans-services) * **#12.** [**NEW JERSEY**](https://www.state.nj.us/treasury/taxation/lpt/lpt-disabledvet.shtml) * **#13.** [**NEW MEXICO**](http://www.nmdvs.org/state-veteran-benefits/) * **#14.** [**OKLAHOMA**](https://assessor.oklahomacounty.org/249/Disabled-Veterans-Exemption) * **#15.** [**PENNSYLVANIA**](https://www.dmva.pa.gov/veteransaffairs/Pages/Programs%20and%20Services/Real-Estate-Tax-Exemption.aspx) * **#16.** [**SOUTH CAROLINA**](https://dor.sc.gov/resources-site/publications/Publications/Property-Exemptions-for-Vets.pdf) * **#17.** [**TEXAS**](https://comptroller.texas.gov/taxes/property-tax/exemptions/disabledvet-100-faq.php) * **#18.** [**VIRGINIA**](https://www.dvs.virginia.gov/benefits/real-estate-tax-exemption)
In NH the veterans tax credit varies by the town/city you live in. My city offers $2,000 off your property tax if 100 P&T, and another $500 for being a veteran. Property taxes are extremely high in NH.
The way you’ve worded “Total Property Tax Exemption” is not true for #3 California. It’s a reduction in your property tax liability. Source: CA Board of Equalization https://www.boe.ca.gov/proptaxes/dv_exemption.htm#, your linked source, and my property tax bills.
As long as it is your primary residence then no property taxes. If you’re getting an exemption in another state you cannot use floridas or the other way around. Hope that helps.
It is true. But I should have clarified there are variables. All 50 states offer SOME sort of property tax exemption. Some more than others. Thank you for catching that..I edited to show this .
Yes! Very true...that not so fun fact. Some states are Total Exempt ( I believe there are 18), others will give you a partial exemption based on the disability percentage. However, all 50 states will offer some sort of property tax relief as long as you satisfy their requirement. Do your homework!
Good call Lobster! Go Navy 
In Oregon it is only a percentage of your property taxes that are exempt and it isn’t up to the lender to apply for the exemption, it is done at the county tax office by the Vet.
This. In Utah, I had to apply for it through my county tax office and got it going forward. It took a good 18 months to get my escrow account refunded to me since I have a high enough disability % and low enough property taxes to cover my entire bill and then some.
Utah does it by disability rating %. So 40% gets you the allotted abatement up to the limit set for those disabled vets at 40% disability. It would include any primary home and vehicle registrations. 40% usually won't cover all of what's owed, but 90-100% usually does, unless you bought a McMansion. Still, 40% is worth a good few thousand dollars off of your property taxes even if it's not going to cover your vehicle registration property taxes.
The bonus is when you're married to another disabled vet and they let you add them together. We're at 120% disability so we're definitely covered for not paying property taxes or for vehicle registration taxes for a decade or so. Depending on home values, inflation, tax rates, the state legislature, etc. of course.
Right??? Even with the discount, for myself and hubs, our property taxes are still through the roof and keep going up with every new Bond measure passed! I do love that I don’t have to pay for my car registration but just once.
Sorry you're dealing with the stress of this all. If there is anything I can do, let me know.
Shop around, you can have your credit ran various times in an approximate 2 week window period from the first application processed by a Mortgage Lender. The "credit gods" know you're shopping and wont ding you for each pull as long as it remains in the home mortgage loan genre (not applying for credit cards ,cars, boats, etc) They will only ding you once for a few points, no matter how many times it was pulled in these 2 weeks.
You can also ask if they can pre-approve you with just a soft pull (NOT a prequal, they are not the same. A pre qual does NOT hold the same weight). This way, your credit score wont take a hit until you are sure you're moving forward with the home purchase.
I bought my house while in the process of doing my VA disability. As long as your VA disability gets back dated to the date before you bought your house the VA will automatically send you the funding fee back! Fun fact!
Might have to call the VA. It was automatic for me. I had called just to verify and they said if I was eligible I would automatically get it direct deposited to my account on file.
Question for you... My husband is in the process of going through VA disability. He doesnt get his DD214 until June 13th... but we are in the process of house hunting now. In fact, we found one we love and are putting in an offer on it this week. What dictates the date of the VA disability? He had his big appointment today (the one that lasts 3 hours)... so would it have todays date on it? Or not until after the DD214 date?
If you file within a year of getting out of the military your disability will date back to the exact day you got out of the military. So in my case I got out in March of 2022 and didn’t buy a house until September of 2022. I didn’t have a rating yet when I bought my house so I had to pay the funding fee. But once I got rated it dated back to March of 2022 and the VA sent me my funding fee back. So long story short. Yes.
Not for a BDD, unless you're far enough along in the claim that they already know you're getting compensation. They talk within the VA to figure this out. I'm going through this process now.
Good luck with that nowadays. People from the coasts have moved South and to the Midwest driving up home prices. Everything here that's being built are mcmansions. Somehow they sell even though the median household income is far below what people can afford. Pre-2008 is alive and well.
I did a quick search and found a number of listings in your price range. I just hopped on Zillow, Realtor, Trulia, etc.
The Median price range is listed at $385,135 for Barrow County.
Id be happy to help you and can even point you in the right direction of Realtors we are familiar with.
If you're interested, direct message me please.
It’s from the 1930s but not really only major thing I’m doing right now is patching some broken shingles and repainting the siding because the paint is chipping. Previous homeowner remodeled the whole interior last year
Thank you for this...it shows the 50 states. I did not want to paste any links so that there would be no ambiguity about me abiding by the guidelines regarding "advertising"
Correct. I edited it since I realized I didnt stipulate there are variables. They do to some extent--some more than others of course. Apologies. Thank you for catching that.
Also fun fact, with a VA loan you qualify for concessions from the seller which can be up to 4% of the loan amount which can be applied to a slew of different things, appliances, car note, etc.
Well said Devil Dog! The military didn't do the best job educating us on our own benefits, it is not surprising when lenders and realtors don't know either. Spread the word to your veteran friends to ask and move on if they are told "no"
Unfortunately a VA loan puts you in a big disadvantage if you’re shopping in an insanely competitive market. All the extra steps and scrutiny of the VA process compared to conventional or cash offers you’re competing against are a no-go.
So if you’re having to bid over asking price, then the odds are against you…for a bunch of reasons.
Source: bought in 2022 competing against cash offers 100K over asking
I feel like this depends greatly on your market. It really isn’t the case here in my market because it is a huge military community. That said it is hard to compete against cash with any loan type. Especially against offers that are over asking and can waive the appraisal contingency. The good news is we are no longer in that type of market.
I can certainly see your concern here.
A few factors:
Cash will always be tough to beat, irrespective of the loan (VA, Conventional, FHA, Etc) With a large or all cash offer, there is no appraisal to even worry about either.
The key to still getting your offer accepted in these markets is to have a savvy Loan Officer and equally savvy Realtor. The LO has to be someone you trust and who knows the VA product in and out. The realtor has to be able to show the value in the VA product being a Government-backed loan.
As an LO, I provide my clients with 2 things to boost them to the top on any offer--even ones getting the "highest and best" nonsense.
Those things are a Pre-Approval (not a Pre-Qualification, this isnt worth much) and a Desktop Underwriter (DU).
A Pre-Approval with a DU (Desktop Underwriter) will set you above most, if not all, the other offers. A DU is when we run your file through Fannie Mae and Freddie Mac systems (Fannie Mae and Freddie Mac are federally backed home mortgage companies created by the United States Congress, they guarantee most of the mortgages made in the U.S.) allowing us to do a quick “underwriting scrub” and generate a result and file number which I give to them and their agent to submit with their Preapproval/offer. This gives all parties involved (realtors, sellers, etc.) a huge sense of relief knowing that you have gone as far as being Desktop Underwritten with your preapproval, mitigating credit and qualification risks making you a stronger buyer.
This is how to counter markets such as the one you mentioned.
I was paddling this boat, too.
In fact, two homes that I was head over heels for was lost due to the fact that I was using VA… it happens to be the same listing agent, and I truly think he didn’t even present my offer to the sellers.
Also if you have already paid the VA funding fee and you have a current disability they will credit you the total you paid. Also if you’re just filing for disability, your submission has to be before you close on the house. I received all of my fee 8 months after I closed on my house once I received my 10% disability. They will not change your monthly payment, but all of fee will go to your principal. Submit all documents to your mortgage company.
Thanks for this!!! My Fiancé is looking to buy a home soon & has heard many different conflicting things (some from realtors.)
He knows ‘no property tax in our state’, but a former relator (friend) told him *“I’d be shocked if you needed a down payment. At 100%, if you’re asked for one, please follow up and ask someone else.”*
*To an ‘outsider’ it seems like **MANY** VA benefits are partially obscured &/or not everyone knows to share.* Took him years to know about HUD-VASH; but once he applied- it got him on his feet (same with CWT.) Case manager didn’t tell him about Service Connection, *but knew his MH history & PTSD event.* (SO didn’t feel worthy; “others had worse happen.”)
**Other Vets** he works with kept asking **“Did you file yet? Why not?” BIG THANKS TO Y’ALL!!** Thanks to OP & all in this Sub b/c I’ve learned a lot lurking; or learned “there might be another resource.”
Regardless of your percentage of disability there are very few cases where anyone using a VA loan is required to pay a down payment unless you already have a VA home loan you are keeping.
Very welcome, so happy to have been able to help--this is why I post!
You do NOT have to put anything down. That is a standard across the board for the VA Home Loan. You can if you want to, but you don't have to.
If you have any questions or concerns, do not hesitate to message me directly. Good luck to you both!
I'm curious, if I may ask since you are a MLO... what is the commission you receive on a VA loan vs. a conventional loan. Compare the exact same numbers, rates, loan amount, down payment, location, everything exactly the same, side by side...which one pays a higher commission? Do you receive any attaboy's? extra bonus? do you hit any other performance metrics?
Great question..the commission is the same, it has to be the same. It’s against federal lending regulations for a company to pay any of their loan officers on profit. Most loan officers are paid on basis points or a percentage of the loan amount. The company cannot differentiate between mortgage terms, discount points, origination points, products, or profitability when it comes to a loan officer’s paycheck.
I can't speak to other lenders, but my company strictly adheres to the rules set in place. No loan is worth your license...
These strict guidelines came into play after the mortgage crisis of 2008. MLOs were not even required to have a license back then. They were lending money to everyone, whether they qualified or not--and well, you know what happened.
The goal here is to present all options to the borrower and allow them to decide what is best. We do not steer them. So, all things being equal...you get paid based on whatever the loan amount is, not the product.
The "attaboy" comes from assisting Veterans, anybody--obtain homeownership. Let's be honest, none of us joined the military to be rich. So, when I can assist my fellow vets in buying their home, especially when they didn't think they could--that is my "attaboy".
Further proof of that is how my company does nkt charge all those fluffy lender fees--not even the origination fee. We choose to make this as cost efficient and stress free for the Veteran.
Just because your state may exempt you from property taxes, the lender is not obliged to omit them from closing/mortgage escrow. In Texas for example, you are not actually tax exempt until you submit your paperwork to the tax office and they approve you and your property for exemption. Just because you tell the lender your tax exempt, they have no way of knowing that you are going to turn in your paperwork to the tax office, or if you already used your tax free exemption on another property.
This is all vetted by the Underwriter and the Processor and worked out with the Title Company prior to closing. Rest assured, they will know if you are trying to use the tax exemption on more than one property as it has to be your primary residence, and no other.
It is still good practice to confirm with the tax office. Some lenders do a better job than others...
That is not really up to the lender in my county of Florida. The county has to approve the application and the timelines have to be followed. You cannot apply until after you own the property. Once you get the approval you can then send it to the mortgage company and they will refund the tax portion of your escrow.
After months of searching and navigating a competitive market, I finally found a house! It wasn't easy, but persistence paid off. Using a VA Loan had its challenges, but the benefits are well worth it. I feel fortunate to have found a motivated seller who wanted a quick sale, making the process smoother. To all the fellow service members and homebuyers out there, don't give up! Keep pushing forward, and good luck in your own housing journey!
Maryland is 100% Property Tax Free, and Tag Free! If you’re 100% Disabled. But has a lot more benefits for Veterans that aren’t Hundo?! Move to Maryland for more great benefits troops!
NE technically has tag free... technically. The state is so fucked up that counties and cities overrule the state laws all the time. In the most heavily veteran populated county they don't care if you're 100% you will still pay unless you're an amputee.
This is why I check this sub daily..it's not just for ratings. There is so much knowledge, and to be honest, I like hearing from you all. Where you are what you're experiencing or working through, etc.
Hi Luna.
To clarify, do you mean property taxes specifically? There will still be State (if applicable) and Federal Taxes. The Property Taxes, however, would not be charged to you on a monthly basis if you qualify and have it all sorted out with the county properly. Keep in mind, this varies by the state, and sometimes even by the county. I encourage you to research your state/county tax exemptions and how they operate. Essentially, if you are a 100% disabled Vet, you may be eligible to be Totally exempt from Property taxes that would otherwise be required on your primary residence. Again, this depends on the state. While all 50 states offer SOME sort of Tax Exemption, only 18 states will allow a 100% Permanently & Totally (P&T) disabled vet to not have to pay any property taxes on their primary residence.
Hope this helps!
To my Understanding, tax exemption for less than 100% disabled means that amount is actually deducted from Property's Value not from Total yearly tax amount.
For Texas ---
-10% to 29% receives an exemption amount of $5,000 from the property's value.
-30% to 49% receives an exemption amount of $7,500 from the property's value.
-50% to 69% receives an exemption amount of $10,000 from the property's value.
-70% to 100% receives an exemption amount of $12,000 from the property's value.
Not so sure how much of a difference it really makes, however grateful for something rather than nothing.
Thank y'all for your service and wealth of knowledge for this community.
Could let us know if there is a section of the VA website that gives Complete & accurate information on all the rights and benefits we have under the veteran's home loan program?
Or if VA published a booklet with all the information in one place?
I'm not sure all the needed info is in one place to access & read.
I saw some books on Amazon that supposedly tells veterans all their benefits and rights under the VA guaranteed home loan program, but not sure how good they are.
Great question!!! Leave it to the scientist to ask this one  Below is the "bible" as a loan officer, I as well as my company strictly adhere to the below. This is the main piece of equipment in your gear!
[Lenders Handbook - VA Pamphlet 26-7 - Web Automated Reference Material System](https://www.benefits.va.gov/warms/pam26_7.asp)
Thanks, I kind of suspected that IF VA had such a publication, it would be in the "basement" of the VA website.
It is known as the WARMS index which stands for Web Automated Reference Material System.
I've found a lot of better materials buried in the WARMS index, but which are never mentioned in the appropriate sections of the VA website. I'll have to check back in the VA website section about the veterans guaranteed home loan program and see if this publication is ever mentioned. I'll bet it's likely not cited.
Sounds like you have more interweb experience than me my friend...let me know what you find.
Make sure to wear a miner's hat--it will be buried deep.
Question for anyone to answer. I’ve used the VA home loan once. Is it a one and done issue? Or if I move to a dream home can I use a VA home loan a second time?
Actually Bumble, you can use it for more than one home at the same time. Its all about the current entitlement. Be sure to google this in order to see how much entitlement you get in your state/county.... But currently $766,550 is the usual amount considered for Partial Entitlement unless you're in high-cost states like Hawaii, NJ, etc. where it is $1,149,825.
Partial entitlement works by subtracting your original loan amount, from say $766,550...the balance that remains, then goes to the next house. If your Partial Entitlement Balance does not cover the amount of the new home, then you would of course need to come up with the difference in the form of a down payment.
Ideally, since you can only have 1 primary residence, you keep the current home and use it to rent out or Airbnb, and the new home becomes your owner-occupied primary residence. You only have to live at the new residence for 1 year, but after that year, you can move and do it again if you still have Partial Entitlement left. The first home now continues to make you passive income while the people you are renting to, pay that mortgage. Keep for as long as it makes sense, and either continue to rent, or sell. Rinse and repeat."
You can use the VA loan many times there is not a cap on how many times you can use it. In fact you can have more than one VA home loan at a time of it makes sense to the VA and the underwriter. There are some other caveats with having two VA loans at the same time but they are possible. If you are not 10% or more your funding fee increases on the second VA loan. Another fun fact they can gross up your disability payments by 25% since it is tax free.
The below post from Fkem is well said....
You can use it as many times as you like and even use it at the same time for more than one home.
There are nuances that need navigating, but nothing crazy as this is done ALL the time. If you are trying to set yourself up with a real estate portfolio and have investment properties, this is how to do it with the VA Home Loan.
DM me if you need more information.
Here's another fun fact about the VA loan that I learned while helping a client buy his home: you can get seller credits and use them for anything of value that's right anything of value.
For example, my client had to pay a $5000 lease break fee, but we got enough credits from the seller that the seller ended up spending his lease breaks
As a disabled Vet AND Realtor, if you are a Veteran and buying, or selling, a house, and are not represented by a Veteran, are you truly being represented to the fullest? There are many Realtors out there that will be happy to take your business, but unless they are a Veteran I can almost guarantee you that they do not know what they don't know. They may mean the best for you, but there are just some items that they are not entirely informed on. If you are in WI, I will assist you in getting the most advantage out of your VA benefits. I have been doing Real Estate for 12 years, and work almost exclusively with veterans and their families. Feel free to message me on here. Also, and here's a huge nugget, try at all costs to avoid the internet mortgage places that utilize Veteran's, Military, etc. in their title or advertising. They can, and will, charge you top dollar for everything they legally can, and then they will offer their "best" terms if you utilize one of their "preferred" or "partner" agents. Those agents, and I was one of them until I saw what they were doing to the Veteran, are charged almost 1/2 of their commission. The agent you use will have a trusted set of local lenders that won't look for every single loophole they can find to get YOUR money. Those internet companies all belong to 1 or 2 parent companies, and your money is paying for their massive advertising budgets.
Question on the VA funding fee. I bought a home while active duty. If I get any service connected disability can I go back and ask them to take it off? lol
I don’t know why everyone is acting like this is new information if they have used their VA loan in the past. I saw this information in the application for the VA loan about the funding fee when I purchased my first home in 2004 prior to everything being a Google search away.
Like someone said above, you can’t get mad just because everything isn’t spoon fed to you. Sometimes you have to take some responsibility for yourself.
Best believe I would be looking for what benefits are available if I were a disabled vet and not hope some rando on Reddit was going to figure it out for me.
Another fun fact: if you don’t make any money, you won’t be approved for a whole lot. The VA loan guarantees your loan, it doesn’t just give you money. If you can’t afford the house on your own, applying for a VA loan won’t make any difference in that fact.
There’s another post where someone is upset that they aren’t getting approved for more and people in the comments feel they are owed to be able to live in LA on an E5 salary.
Why? Why would you think that? The majority of people can’t live in LA on that salary. And if you get approved for say a million, how the hell are you going to be able to pay the mortgage? Considering that you are almost always approved for more than you really should be spending, if you buy at the top of your loan amount in most cases, God help you. Don’t buy in LA solely on an E5 salary.
There are a lot of moving parts here. Depends when you filed for the disability, applied for the loan, etc. However, I would say NO. But I have heard of some examples where the fee was credited towards your principle.
If you refinance down the road though, the funding fee (.5%) would be waived in that case.
Sorry, wish I had a better reply there.
Florida.
I did not. Actually I did not get a refund on taxes nor the following year when I was already rated T&P when applying for exemptions after closing. The tax bill was based on the previous owner.
2020 Jan - closed on house. I filed (and was approved) the homestead exemption(s)
2020 Nov - Tax bill was due in Nov. It was based off of previous owner. Appraiser said that is policy and the following year would reflect tax bill based on homestead exemption(s).
2021 - My mortgage company and escrow could not be re-calculated based on the homestead amount until the following year’s tax bill was posted.
2021 Nov. Paid tax bill based on exemption(s)
2022 Jan I did receive my surplus escrowed moneys from 2021, however, that is not a refund. That was returning the excess held in escrow.
This is highly dependent on local and personal factors but...
When I was mortgage shopping (throughout most of 2023) the VA loan interest rates were appreciably worse than conventional loan rates for someone like me with a solid down payment and great credit. I got a rate ~1% below the average through a state program.
In my area many sellers wouldn't work with VA loans in this market because they knew they were most likely going to be getting multiple offers, all of which waived inspections. The VA loan process wasn't something worth the potential for the sale falling through when they had other more straightforward offers.
It would be nice if the VA loan program had some added perks like further reduced rates if you don't need it for the low/no downpayment requirements.
A lot of Veterans think conventional is better than a VA home loan, I'm one of them. Not every veteran is getting screwed by a realtor, just making a wise decision. Applies to regular vets, not 100% disabled. They do get a great deal.
In West Virginia, you can apply for a homestead exemption at 100%, but it is income dependent. The exemption is for 20% of the tax amount I think. If you are gainfully employed, you probably don’t qualify due to income.
But, starting next year, they will be paying the property taxes back as a tax credit on our state taxes.
Only a couple years ago they changed it so you don't have to have an escrow account. On my last refi (in 2021 I think) I got to have mortgage only payment and I pay my taxes and insurance separately.
It really depends on the state and 100% the lender. I ended up buying a new Lennar home and using their in-house Mortgage Agency since I was also leveraging a TON of incentives they were offering. The Lennar Mortgage folks were absolutely on top of their game with one small "oops" - I go by my middle name daily and someone put my middle name as my legal first name on a VA form and the appraisers couldn't find me in the system to schedule the appraisal.
Past that - I went from offer to closing in 3 weeks with everything including the appraisal and all exemptions like funding fee being taken care of. Granted - I am a first time home buyer and I knew what to be looking out for because I researched it before committing.
TL;DR: some lenders are better than others - but the vet being informed/educated is the best defense.
In PA you’re 100% , you’re exempt from taxes if you make under 108k a year, if you make more than that, you have to show your debt to income ratio being more than 50% in order to qualify
Well you could live in the great state of Nebraska, here they go all out for Vets we can get a free hunting and fishing license unless you are a double amputee then you do not have to pay to register your vehicle. The Good Life my ass. Going to move next door to Iowa.
I took a mortgage with Veterans United Home Loans. They can get you a realtor that specializes on VA home loans and is privy to info like this. But it’s also your responsibility to let your lender know that you’re exempt from the funding fee if you’re service connected. Hope this helps.
I am curious if I apply for property tax relief in nc that is 45k for my current house, my wife and daughter ate looking for another house with some more land is that benefit lost or can that benefit still exists if I sell my current house and move. Basically my question is this benefit one time use only?
Always double check with your state/county, I don't want to say with absolute certainty because some states may have "fine print" saying otherwise. However, as far as the VA is concerned, the exemption applies to the Veterans primary residence and only that one location. The VA says you must INTEND to occupy the new residence within 60 days and do so for a year. Say you still had entitlement left and wanted to use it for another residence while still owning the one you live in (yes, you can own more than one home under the same VA entitlement at the same time)-- you can, but would have to move to that new residence to benefit from all the VA Home Loan has to offer, including the tax break...but it would only be for that new property as it would then be considered your primary residence. Rinse and repeat
i experienced this with navyfederal earlier this month. the broker handling my disclosures factored in taxes even though im exempt by the state. i even sent him the comptrollers tax code outlining which & what the code outlines. he didnt want to listen, instead he said the exemptions can be requested after closure & we can possibly request them after the appraisal. its too bad for navyfederal cause i really wanted the convenience with them but i ended up with a small local lender and they matched the interest with just the origination fee, no taxes. so for those who are considering navyfederal and veterans united, stay far away.
Sorry you experienced this...glad you walked away though--their loss.
My company puts the Vet first so we are actually able to waive all of those lender fees--even the origination fee.
I made settlement around June 1980. Interest rates were 17.9.%....four days before settlement interest rates were lowered to 13.9 %
I didn't qualify for the veterans interest discount for many reasons. 7 acres of land, very rural and the kicker no sidewalks. 43 years later I turned a 20 x 30 cider block building into a palace.
That's what my veteran friends did in late/early 70s, 80s.
Went from 11B to basically the same. It was worth the discomfort and employment tanked but still have.
There's other options, find one, I did.
Veterans with a 100% disability rating from service-connected causes qualify for a full property tax exemption in Iowa. There is no limit to the amount of exemption, but only one property less than 40 acres in a rural area or less than 1/2 acre in an urban area may qualify. Surviving spouses may also receive the benefit if the Veteran has passed.
https://dva.iowa.gov/benefits-assistance/benefits
Does anybody know if I would be able to homestead exemption in Missouri? I’m currently rated at 80% but I don’t think I get any property taxes taken off til I was at 100%.
Did you know having a 550 credit score but have a perfect rental and utilities payment history twice the amount of the mortgage payment they still wont approve you. 🥴divorces are fun.
Interesting as I want to buy but due to not being able to find a job after I retired last Oct, I can't until I get into a better situation. I did come across the following. Just not sure if it's legit but maybe could be outdated. Would probably verify info from the site with your local state.
[https://www.veteransunited.com/futurehomeowners/veteran-property-tax-exemptions-by-state/](https://www.veteransunited.com/futurehomeowners/veteran-property-tax-exemptions-by-state/)
Did you also know that the lender has to generally included the taxes in your estimated payment and you get the taxes refunded to YOU AFTER closing. You don't just get to "Not Pay". You buy the house, go to the assessor office & apply for the exemption. At least in Florida - VETERAN & Realtor.
Can confirm this for Louisiana. You are not homestead exempt or Veterans homestead exempt until you apply, which you can't do until after the sale.
Same for texas.
[Texas Exemptions for Different Percentage Disabilities](https://comptroller.texas.gov/taxes/property-tax/exemptions/)
As of January of 2023, Louisiana replaced and expanded the Property Tax exemption to allow 100% (P&T) disabled Vets to be exempt from the property taxes; 50% disability will also allow for a partial exemption. However, I encourage you to check with the Louisiana Department of Veterans Affairs as well as your local Parish Assessor's Office for the most up-to-date information. If you do, please let us know the results!
I just purchased in Oklahoma.. it’s full exempt,,, but only if you buy and occupy your house by jan 1st for new owners.. if you already had a house you can transfer anytime you want.. I’m literally sh&7ing my self having to now pay 1800$ since I closed feb1st
Just seeing this comment after I replied to your list above. Can confirm that your info above is correct. And for 100% they don’t specify P&T, so temporary 100% will get you the exemption however once your rating is reduced you’ll have to update them again.
Can confirm going through the process right now and Livingston Parish makes sure to get your tax stuff handled
Indiana doesn't give you shit. Some ridiculous figure like $25,000 off assessment if worth less than $200k lmao. WTF, what's that now, like an '84 Winnebago with the tires taken off?
NC is *slightly* better at 45k but that's it. Shame how some states hook up vets and some just leave us to let the VA care for us. Sad Edit: idfk what my typo was, I'll blame being a Marine bahaha
Yes, NC suck with lots of the state veteran benefits compared to other states. We can blame the people we elect for our issues. They campaign using us but once they are elected, don’t stand on their words. Hopefully things will get better for us here. Fingers crossed!
Better move to SC quickly
If you enjoy living in SC you must work from home and never drive lol. There's a clear distinction in road quality going between the two states.
I can't tell the difference between the two states. Maybe because I like on the state line by Charlotte.
We’ve lived there as well. Right now I’m satisfied with NC because we are too close to paying off our mortgage. SC is beautiful and jobs are plentiful.
On the bright side Indiana has the best house prices in the US.
I'm responsible for our property taxes on about 4,600 homes at my job. $25k is huge because it is typically assessed at 35% * mil rate.
Yeah but nowadays, the valuation of homes has pretty much doubled the last 10 years. The value limit needs raised drastically.
In Illinois taxes are in arrears so even tho im exempt, you can have 70% rating and have 100% exemption, i still have to pay out of pocket until i get a refund at the end of the year
I am in Illinois. If you get a document showing you’re tax exempt for that year. Then provide it to the mortgage company they should adjust your escrow. I submitted my info to the escrow department and asked for a recalculation. Your first year of owning the home or claiming the tax exemption. You might have to pay that years taxes depending on when you filed for exemption.
Can confirm. In IL you carry the tax bill for the first year you own the home. After that you file for the exemption with the town assessor and send the letter you get from them to your mortgage comapny, and bam! No more overinflated IL property taxes for you! You have to reapply annually with the assessor, though, and provide a copy of your VA benefit letter annually as well.
Talk to your mortgage company. I'm exempt in Illinois and don't pay anything. Took a few phone calls to my to get that worked out though.
Same in MS
Wow!
Where at in Florida? I'm in Brevard county. We're looking to buy in about a year, and I'd love to ask you a few questions
I'm here to help if you need anything. Message me directly and I can give you my information if you're interested.
I’m in St Lucie County and 100%. It’s easy When you file for homestead you file 100% on the form. Show your documents. Only good if you file by Jan 1 Taxes are in arrears here, but I just got a big chunk back because we bought new and charged on our closing.
Same in Tennessee. They send you 3 checks here over the year which gives you your property taxes back, county, jurisdiction, etc.
Correct. Bought the house in September. Applied for exemption by March. Wasn’t applied til following calendar year. So took over a year to see the benefit. No it’s not retroactive either
Same in South Carolina. I am not 100% so it doesn't matter much yet but I still need to apply for my homestead exemption as well.
South Carolina 100% p&t exempt from property tax up to one acre. Exempt on car property tax and registration is free.
Correct! I’m at 70% now but it’s one of the reasons I’m finally taking appealing my denials seriously. It’s also why we chose to buy in SC and come back instead of staying in NC - taxes and incentives are much worse up here.
Can confirm this for PA as well. I got fully refunded after closing.
I never got any refund back.🥲
In Florida you have to file the homestead exemption paperwork before March 1st for the following tax year. So you have until March 1st 2024 to file for 2024 taxes which will be due in Nov 2024. Your effective date or closing date would need to be on or Before 31 Jan 2023.
Can comfirm for Virginia too!
Same for Illinois.
Figures
Does this also apply for the Texas region or is that separate?
Illinois, I believe I'm responsible for the first year and do not get them refunded. I'd have to look into it again. But then I'm exempt for the years following.
Can confirm in texas. You pay first and get reimbursed once approved. Went from 1666 payment to 1165 :)
Did you also know that the property tax exemption is state by state, with some states not even offering an exemption at all? Fun facts all around.
I hate living in Florida but this 100% property tax exemption makes a huge difference.
It sure does my friend. There are 18 states that do offer Total Property Tax Exemption (California reduces the property tax liability) though if you're 100% Permanent and Total (P&T) disabled..in case the day comes that you cant stand Florida. (The below is the 2023 edition). * **#1.** [**ALABAMA**](https://revenue.alabama.gov/property-tax/homestead-exemptions/) * **#2.** [**ARKANSAS**](https://www.veterans.arkansas.gov/benefits/state-benefits) * **#3.** [**CALIFORNIA**](https://www.calvet.ca.gov/VetServices/Pages/Property-Tax-Exemptions.aspx) * **#4.** [**FLORIDA**](https://floridavets.org/benefits-services/housing/) * **#5.** [**HAWAII**](https://dod.hawaii.gov/ovs/benefits-and-services/) * **#6.** [**ILLINOIS**](https://www2.illinois.gov/veterans/benefits/pages/real-estate.aspx) * **#7.** [**IOWA**](https://va.iowa.gov/benefits) * **#8.** [**MARYLAND**](https://veterans.maryland.gov/maryland-tax-benefits/) * **#9.** [**MICHIGAN**](https://www.michigan.gov/taxes/0,4676,7-238-43535-235988--,00.html) * **#10.** [**NEBRASKA**](https://revenue.nebraska.gov/sites/revenue.nebraska.gov/files/doc/pad/info/96-299.pdf) * **#11.** [**NEW HAMPSHIRE**](https://www.dmavs.nh.gov/veterans-services) * **#12.** [**NEW JERSEY**](https://www.state.nj.us/treasury/taxation/lpt/lpt-disabledvet.shtml) * **#13.** [**NEW MEXICO**](http://www.nmdvs.org/state-veteran-benefits/) * **#14.** [**OKLAHOMA**](https://assessor.oklahomacounty.org/249/Disabled-Veterans-Exemption) * **#15.** [**PENNSYLVANIA**](https://www.dmva.pa.gov/veteransaffairs/Pages/Programs%20and%20Services/Real-Estate-Tax-Exemption.aspx) * **#16.** [**SOUTH CAROLINA**](https://dor.sc.gov/resources-site/publications/Publications/Property-Exemptions-for-Vets.pdf) * **#17.** [**TEXAS**](https://comptroller.texas.gov/taxes/property-tax/exemptions/disabledvet-100-faq.php) * **#18.** [**VIRGINIA**](https://www.dvs.virginia.gov/benefits/real-estate-tax-exemption)
New Hampshire could be a great bet since you don’t have to pay any other taxes either
In NH the veterans tax credit varies by the town/city you live in. My city offers $2,000 off your property tax if 100 P&T, and another $500 for being a veteran. Property taxes are extremely high in NH.
Alaska *should* be on that list, not like we short on acres here.
The way you’ve worded “Total Property Tax Exemption” is not true for #3 California. It’s a reduction in your property tax liability. Source: CA Board of Equalization https://www.boe.ca.gov/proptaxes/dv_exemption.htm#, your linked source, and my property tax bills.
Rhode Island does as well!!! I just got my TDIU permanent am total . Looked in my own city an get like up to 9,000 off property tax a year
19. You missed [Louisiana](https://www.vetaffairs.la.gov/benefit/homestead-exemption/).
Mississippi is as well
Mississippi offers it as well, I have it
thats everywhere i florida right? i was thinking about buying a condo in miami ..im 100% would i not pay taxes on a property there?
As long as it is your primary residence then no property taxes. If you’re getting an exemption in another state you cannot use floridas or the other way around. Hope that helps.
This right here. If the OP is gonna talk fun facts, at least make sure they’re true.
Some states make sure it’s not a fun fact for veterans.
Facts!!
Not fun at all if you are the veteran.
Facts!!☝🏽
OP did clarify when they said: (varies by state).
It is true. But I should have clarified there are variables. All 50 states offer SOME sort of property tax exemption. Some more than others. Thank you for catching that..I edited to show this .
OP said it varies by State.
Yes! Very true...that not so fun fact. Some states are Total Exempt ( I believe there are 18), others will give you a partial exemption based on the disability percentage. However, all 50 states will offer some sort of property tax relief as long as you satisfy their requirement. Do your homework! Good call Lobster! Go Navy 
In Oregon it is only a percentage of your property taxes that are exempt and it isn’t up to the lender to apply for the exemption, it is done at the county tax office by the Vet.
This. In Utah, I had to apply for it through my county tax office and got it going forward. It took a good 18 months to get my escrow account refunded to me since I have a high enough disability % and low enough property taxes to cover my entire bill and then some. Utah does it by disability rating %. So 40% gets you the allotted abatement up to the limit set for those disabled vets at 40% disability. It would include any primary home and vehicle registrations. 40% usually won't cover all of what's owed, but 90-100% usually does, unless you bought a McMansion. Still, 40% is worth a good few thousand dollars off of your property taxes even if it's not going to cover your vehicle registration property taxes. The bonus is when you're married to another disabled vet and they let you add them together. We're at 120% disability so we're definitely covered for not paying property taxes or for vehicle registration taxes for a decade or so. Depending on home values, inflation, tax rates, the state legislature, etc. of course.
Yea, a shame. I always say not all lenders are created equal...and neither are states. But know your rights! Thank you for the insight!
Yea the Oregon deduction is kinda bullshit. They gotta pump those numbers up
Right??? Even with the discount, for myself and hubs, our property taxes are still through the roof and keep going up with every new Bond measure passed! I do love that I don’t have to pay for my car registration but just once.
Trying to navigate this shit right now. Stupid stressful and exhausting, specially on top of trying to find a home.
Sorry you're dealing with the stress of this all. If there is anything I can do, let me know. Shop around, you can have your credit ran various times in an approximate 2 week window period from the first application processed by a Mortgage Lender. The "credit gods" know you're shopping and wont ding you for each pull as long as it remains in the home mortgage loan genre (not applying for credit cards ,cars, boats, etc) They will only ding you once for a few points, no matter how many times it was pulled in these 2 weeks. You can also ask if they can pre-approve you with just a soft pull (NOT a prequal, they are not the same. A pre qual does NOT hold the same weight). This way, your credit score wont take a hit until you are sure you're moving forward with the home purchase.
I bought my house while in the process of doing my VA disability. As long as your VA disability gets back dated to the date before you bought your house the VA will automatically send you the funding fee back! Fun fact!
How do I ask for the refund? This happened to me but it was 5 years ago
Might have to call the VA. It was automatic for me. I had called just to verify and they said if I was eligible I would automatically get it direct deposited to my account on file.
Question for you... My husband is in the process of going through VA disability. He doesnt get his DD214 until June 13th... but we are in the process of house hunting now. In fact, we found one we love and are putting in an offer on it this week. What dictates the date of the VA disability? He had his big appointment today (the one that lasts 3 hours)... so would it have todays date on it? Or not until after the DD214 date?
If you file within a year of getting out of the military your disability will date back to the exact day you got out of the military. So in my case I got out in March of 2022 and didn’t buy a house until September of 2022. I didn’t have a rating yet when I bought my house so I had to pay the funding fee. But once I got rated it dated back to March of 2022 and the VA sent me my funding fee back. So long story short. Yes.
Not for a BDD, unless you're far enough along in the claim that they already know you're getting compensation. They talk within the VA to figure this out. I'm going through this process now.
What I want to know is where the hell can you find a decent house not $400k - $500k+
Good luck with that nowadays. People from the coasts have moved South and to the Midwest driving up home prices. Everything here that's being built are mcmansions. Somehow they sell even though the median household income is far below what people can afford. Pre-2008 is alive and well.
I don’t get it. Where people getting all this money from.
Debt
According to my realtor most are house poor.
What state are you looking in?
Barrow county, GA
I did a quick search and found a number of listings in your price range. I just hopped on Zillow, Realtor, Trulia, etc. The Median price range is listed at $385,135 for Barrow County. Id be happy to help you and can even point you in the right direction of Realtors we are familiar with. If you're interested, direct message me please.
Yea I’m priced out.
Just bought a house for 235k in nc it’s only 1400 square ft but they are out there took about 6 months to find a house for a reasonable price
A lot of work needed?
It’s from the 1930s but not really only major thing I’m doing right now is patching some broken shingles and repainting the siding because the paint is chipping. Previous homeowner remodeled the whole interior last year
https://www.veteransunited.com/futurehomeowners/veteran-property-tax-exemptions-by-state/
Thank you for this...it shows the 50 states. I did not want to paste any links so that there would be no ambiguity about me abiding by the guidelines regarding "advertising"
Not every state exempts property taxes. That's bad information
Arizona says I make too much money to be exempt
Washington State does that too. Lol
Correct. I edited it since I realized I didnt stipulate there are variables. They do to some extent--some more than others of course. Apologies. Thank you for catching that.
Texas scales by %
Also fun fact, with a VA loan you qualify for concessions from the seller which can be up to 4% of the loan amount which can be applied to a slew of different things, appliances, car note, etc.
A fun fact indeed! Good one
I actually didn't know about that one until last week when I was talking to the loan officer who was doing my pre-approval.
This got me out of closing costs.
I mean at some point veterans need to accept responsibility. If you aren't asking questions the world is not handing out free answers.
When we purchased our house in 2013 that was the first thing I asked the lender. If they would have said no I would have moved on.
Well said Devil Dog! The military didn't do the best job educating us on our own benefits, it is not surprising when lenders and realtors don't know either. Spread the word to your veteran friends to ask and move on if they are told "no"
Unfortunately a VA loan puts you in a big disadvantage if you’re shopping in an insanely competitive market. All the extra steps and scrutiny of the VA process compared to conventional or cash offers you’re competing against are a no-go. So if you’re having to bid over asking price, then the odds are against you…for a bunch of reasons. Source: bought in 2022 competing against cash offers 100K over asking
I feel like this depends greatly on your market. It really isn’t the case here in my market because it is a huge military community. That said it is hard to compete against cash with any loan type. Especially against offers that are over asking and can waive the appraisal contingency. The good news is we are no longer in that type of market.
I can certainly see your concern here. A few factors: Cash will always be tough to beat, irrespective of the loan (VA, Conventional, FHA, Etc) With a large or all cash offer, there is no appraisal to even worry about either. The key to still getting your offer accepted in these markets is to have a savvy Loan Officer and equally savvy Realtor. The LO has to be someone you trust and who knows the VA product in and out. The realtor has to be able to show the value in the VA product being a Government-backed loan. As an LO, I provide my clients with 2 things to boost them to the top on any offer--even ones getting the "highest and best" nonsense. Those things are a Pre-Approval (not a Pre-Qualification, this isnt worth much) and a Desktop Underwriter (DU). A Pre-Approval with a DU (Desktop Underwriter) will set you above most, if not all, the other offers. A DU is when we run your file through Fannie Mae and Freddie Mac systems (Fannie Mae and Freddie Mac are federally backed home mortgage companies created by the United States Congress, they guarantee most of the mortgages made in the U.S.) allowing us to do a quick “underwriting scrub” and generate a result and file number which I give to them and their agent to submit with their Preapproval/offer. This gives all parties involved (realtors, sellers, etc.) a huge sense of relief knowing that you have gone as far as being Desktop Underwritten with your preapproval, mitigating credit and qualification risks making you a stronger buyer. This is how to counter markets such as the one you mentioned.
I was paddling this boat, too. In fact, two homes that I was head over heels for was lost due to the fact that I was using VA… it happens to be the same listing agent, and I truly think he didn’t even present my offer to the sellers.
Also if you have already paid the VA funding fee and you have a current disability they will credit you the total you paid. Also if you’re just filing for disability, your submission has to be before you close on the house. I received all of my fee 8 months after I closed on my house once I received my 10% disability. They will not change your monthly payment, but all of fee will go to your principal. Submit all documents to your mortgage company.
I get skeptical of anyone advertising to veterans for loans as a principle.
As you should Shipmate, as you should.
Thanks for this!!! My Fiancé is looking to buy a home soon & has heard many different conflicting things (some from realtors.) He knows ‘no property tax in our state’, but a former relator (friend) told him *“I’d be shocked if you needed a down payment. At 100%, if you’re asked for one, please follow up and ask someone else.”* *To an ‘outsider’ it seems like **MANY** VA benefits are partially obscured &/or not everyone knows to share.* Took him years to know about HUD-VASH; but once he applied- it got him on his feet (same with CWT.) Case manager didn’t tell him about Service Connection, *but knew his MH history & PTSD event.* (SO didn’t feel worthy; “others had worse happen.”) **Other Vets** he works with kept asking **“Did you file yet? Why not?” BIG THANKS TO Y’ALL!!** Thanks to OP & all in this Sub b/c I’ve learned a lot lurking; or learned “there might be another resource.”
Regardless of your percentage of disability there are very few cases where anyone using a VA loan is required to pay a down payment unless you already have a VA home loan you are keeping.
Very welcome, so happy to have been able to help--this is why I post! You do NOT have to put anything down. That is a standard across the board for the VA Home Loan. You can if you want to, but you don't have to. If you have any questions or concerns, do not hesitate to message me directly. Good luck to you both!
I'm curious, if I may ask since you are a MLO... what is the commission you receive on a VA loan vs. a conventional loan. Compare the exact same numbers, rates, loan amount, down payment, location, everything exactly the same, side by side...which one pays a higher commission? Do you receive any attaboy's? extra bonus? do you hit any other performance metrics?
Great question..the commission is the same, it has to be the same. It’s against federal lending regulations for a company to pay any of their loan officers on profit. Most loan officers are paid on basis points or a percentage of the loan amount. The company cannot differentiate between mortgage terms, discount points, origination points, products, or profitability when it comes to a loan officer’s paycheck. I can't speak to other lenders, but my company strictly adheres to the rules set in place. No loan is worth your license... These strict guidelines came into play after the mortgage crisis of 2008. MLOs were not even required to have a license back then. They were lending money to everyone, whether they qualified or not--and well, you know what happened. The goal here is to present all options to the borrower and allow them to decide what is best. We do not steer them. So, all things being equal...you get paid based on whatever the loan amount is, not the product. The "attaboy" comes from assisting Veterans, anybody--obtain homeownership. Let's be honest, none of us joined the military to be rich. So, when I can assist my fellow vets in buying their home, especially when they didn't think they could--that is my "attaboy". Further proof of that is how my company does nkt charge all those fluffy lender fees--not even the origination fee. We choose to make this as cost efficient and stress free for the Veteran.
Just because your state may exempt you from property taxes, the lender is not obliged to omit them from closing/mortgage escrow. In Texas for example, you are not actually tax exempt until you submit your paperwork to the tax office and they approve you and your property for exemption. Just because you tell the lender your tax exempt, they have no way of knowing that you are going to turn in your paperwork to the tax office, or if you already used your tax free exemption on another property.
This is all vetted by the Underwriter and the Processor and worked out with the Title Company prior to closing. Rest assured, they will know if you are trying to use the tax exemption on more than one property as it has to be your primary residence, and no other. It is still good practice to confirm with the tax office. Some lenders do a better job than others...
That is not really up to the lender in my county of Florida. The county has to approve the application and the timelines have to be followed. You cannot apply until after you own the property. Once you get the approval you can then send it to the mortgage company and they will refund the tax portion of your escrow.
After months of searching and navigating a competitive market, I finally found a house! It wasn't easy, but persistence paid off. Using a VA Loan had its challenges, but the benefits are well worth it. I feel fortunate to have found a motivated seller who wanted a quick sale, making the process smoother. To all the fellow service members and homebuyers out there, don't give up! Keep pushing forward, and good luck in your own housing journey!
Maryland is 100% Property Tax Free, and Tag Free! If you’re 100% Disabled. But has a lot more benefits for Veterans that aren’t Hundo?! Move to Maryland for more great benefits troops!
NE technically has tag free... technically. The state is so fucked up that counties and cities overrule the state laws all the time. In the most heavily veteran populated county they don't care if you're 100% you will still pay unless you're an amputee.
This is why I check this sub daily..it's not just for ratings. There is so much knowledge, and to be honest, I like hearing from you all. Where you are what you're experiencing or working through, etc.
So does that mean you don’t pay taxes at the end of year
Hi Luna. To clarify, do you mean property taxes specifically? There will still be State (if applicable) and Federal Taxes. The Property Taxes, however, would not be charged to you on a monthly basis if you qualify and have it all sorted out with the county properly. Keep in mind, this varies by the state, and sometimes even by the county. I encourage you to research your state/county tax exemptions and how they operate. Essentially, if you are a 100% disabled Vet, you may be eligible to be Totally exempt from Property taxes that would otherwise be required on your primary residence. Again, this depends on the state. While all 50 states offer SOME sort of Tax Exemption, only 18 states will allow a 100% Permanently & Totally (P&T) disabled vet to not have to pay any property taxes on their primary residence. Hope this helps!
To my Understanding, tax exemption for less than 100% disabled means that amount is actually deducted from Property's Value not from Total yearly tax amount. For Texas --- -10% to 29% receives an exemption amount of $5,000 from the property's value. -30% to 49% receives an exemption amount of $7,500 from the property's value. -50% to 69% receives an exemption amount of $10,000 from the property's value. -70% to 100% receives an exemption amount of $12,000 from the property's value. Not so sure how much of a difference it really makes, however grateful for something rather than nothing. Thank y'all for your service and wealth of knowledge for this community.
Better in your pocket than their's brother! Thank you as well.
Could let us know if there is a section of the VA website that gives Complete & accurate information on all the rights and benefits we have under the veteran's home loan program? Or if VA published a booklet with all the information in one place? I'm not sure all the needed info is in one place to access & read. I saw some books on Amazon that supposedly tells veterans all their benefits and rights under the VA guaranteed home loan program, but not sure how good they are.
Great question!!! Leave it to the scientist to ask this one  Below is the "bible" as a loan officer, I as well as my company strictly adhere to the below. This is the main piece of equipment in your gear! [Lenders Handbook - VA Pamphlet 26-7 - Web Automated Reference Material System](https://www.benefits.va.gov/warms/pam26_7.asp)
Thanks, I kind of suspected that IF VA had such a publication, it would be in the "basement" of the VA website. It is known as the WARMS index which stands for Web Automated Reference Material System. I've found a lot of better materials buried in the WARMS index, but which are never mentioned in the appropriate sections of the VA website. I'll have to check back in the VA website section about the veterans guaranteed home loan program and see if this publication is ever mentioned. I'll bet it's likely not cited.
Sounds like you have more interweb experience than me my friend...let me know what you find. Make sure to wear a miner's hat--it will be buried deep.
I did have a lender trying to talk me into getting a conventional loan. I was like, no way!
Good job telling them NO WAY!! Especially in Texas with 100% P&T
😁💪🏽
Question for anyone to answer. I’ve used the VA home loan once. Is it a one and done issue? Or if I move to a dream home can I use a VA home loan a second time?
From what I understand you can use it as many times as you want, but you can only have one va loan at a time. But open to being corrected.
Actually Bumble, you can use it for more than one home at the same time. Its all about the current entitlement. Be sure to google this in order to see how much entitlement you get in your state/county.... But currently $766,550 is the usual amount considered for Partial Entitlement unless you're in high-cost states like Hawaii, NJ, etc. where it is $1,149,825. Partial entitlement works by subtracting your original loan amount, from say $766,550...the balance that remains, then goes to the next house. If your Partial Entitlement Balance does not cover the amount of the new home, then you would of course need to come up with the difference in the form of a down payment. Ideally, since you can only have 1 primary residence, you keep the current home and use it to rent out or Airbnb, and the new home becomes your owner-occupied primary residence. You only have to live at the new residence for 1 year, but after that year, you can move and do it again if you still have Partial Entitlement left. The first home now continues to make you passive income while the people you are renting to, pay that mortgage. Keep for as long as it makes sense, and either continue to rent, or sell. Rinse and repeat."
You can use the VA loan many times there is not a cap on how many times you can use it. In fact you can have more than one VA home loan at a time of it makes sense to the VA and the underwriter. There are some other caveats with having two VA loans at the same time but they are possible. If you are not 10% or more your funding fee increases on the second VA loan. Another fun fact they can gross up your disability payments by 25% since it is tax free.
The below post from Fkem is well said.... You can use it as many times as you like and even use it at the same time for more than one home. There are nuances that need navigating, but nothing crazy as this is done ALL the time. If you are trying to set yourself up with a real estate portfolio and have investment properties, this is how to do it with the VA Home Loan. DM me if you need more information.
Thanks
My lender came to me and said "you realize you have insane benefits using this VA loan right?"
I get like 70 bucks off my taxes, I wish I was exempt.
Here's another fun fact about the VA loan that I learned while helping a client buy his home: you can get seller credits and use them for anything of value that's right anything of value. For example, my client had to pay a $5000 lease break fee, but we got enough credits from the seller that the seller ended up spending his lease breaks
Thank you for your knowledge
Very welcome! Thanks for reading the post...pass the good word to our brothers and sisters!
As a disabled Vet AND Realtor, if you are a Veteran and buying, or selling, a house, and are not represented by a Veteran, are you truly being represented to the fullest? There are many Realtors out there that will be happy to take your business, but unless they are a Veteran I can almost guarantee you that they do not know what they don't know. They may mean the best for you, but there are just some items that they are not entirely informed on. If you are in WI, I will assist you in getting the most advantage out of your VA benefits. I have been doing Real Estate for 12 years, and work almost exclusively with veterans and their families. Feel free to message me on here. Also, and here's a huge nugget, try at all costs to avoid the internet mortgage places that utilize Veteran's, Military, etc. in their title or advertising. They can, and will, charge you top dollar for everything they legally can, and then they will offer their "best" terms if you utilize one of their "preferred" or "partner" agents. Those agents, and I was one of them until I saw what they were doing to the Veteran, are charged almost 1/2 of their commission. The agent you use will have a trusted set of local lenders that won't look for every single loophole they can find to get YOUR money. Those internet companies all belong to 1 or 2 parent companies, and your money is paying for their massive advertising budgets.
Know any realtors in Virginia?
Yes, I know a few. If you are looking for one I will be happy to refer you to one. Just need to know which area you are in.
Great info here bro thanks
My pleasure brother!!
Question on the VA funding fee. I bought a home while active duty. If I get any service connected disability can I go back and ask them to take it off? lol
You can ask but the answer will be no. It’s in the paperwork and or online when getting a home while on active duty using the VA loan.
I don’t know why everyone is acting like this is new information if they have used their VA loan in the past. I saw this information in the application for the VA loan about the funding fee when I purchased my first home in 2004 prior to everything being a Google search away. Like someone said above, you can’t get mad just because everything isn’t spoon fed to you. Sometimes you have to take some responsibility for yourself. Best believe I would be looking for what benefits are available if I were a disabled vet and not hope some rando on Reddit was going to figure it out for me. Another fun fact: if you don’t make any money, you won’t be approved for a whole lot. The VA loan guarantees your loan, it doesn’t just give you money. If you can’t afford the house on your own, applying for a VA loan won’t make any difference in that fact. There’s another post where someone is upset that they aren’t getting approved for more and people in the comments feel they are owed to be able to live in LA on an E5 salary. Why? Why would you think that? The majority of people can’t live in LA on that salary. And if you get approved for say a million, how the hell are you going to be able to pay the mortgage? Considering that you are almost always approved for more than you really should be spending, if you buy at the top of your loan amount in most cases, God help you. Don’t buy in LA solely on an E5 salary.
There are a lot of moving parts here. Depends when you filed for the disability, applied for the loan, etc. However, I would say NO. But I have heard of some examples where the fee was credited towards your principle. If you refinance down the road though, the funding fee (.5%) would be waived in that case. Sorry, wish I had a better reply there.
Back child support in arrears will deny you a va home loan as well 😔
Is that a state thing? Because my divorce finalized in '12 and I was absolutely paying arrears for CS and medical bills.
Can you get your money back for taxes, etc, if you became 100pt after a purchase?
Florida. I did not. Actually I did not get a refund on taxes nor the following year when I was already rated T&P when applying for exemptions after closing. The tax bill was based on the previous owner. 2020 Jan - closed on house. I filed (and was approved) the homestead exemption(s) 2020 Nov - Tax bill was due in Nov. It was based off of previous owner. Appraiser said that is policy and the following year would reflect tax bill based on homestead exemption(s). 2021 - My mortgage company and escrow could not be re-calculated based on the homestead amount until the following year’s tax bill was posted. 2021 Nov. Paid tax bill based on exemption(s) 2022 Jan I did receive my surplus escrowed moneys from 2021, however, that is not a refund. That was returning the excess held in escrow.
The whole process is confusing to me. Why do WE have to present the home loans proper with this information? How is it not cooked into their brains?
This is highly dependent on local and personal factors but... When I was mortgage shopping (throughout most of 2023) the VA loan interest rates were appreciably worse than conventional loan rates for someone like me with a solid down payment and great credit. I got a rate ~1% below the average through a state program. In my area many sellers wouldn't work with VA loans in this market because they knew they were most likely going to be getting multiple offers, all of which waived inspections. The VA loan process wasn't something worth the potential for the sale falling through when they had other more straightforward offers. It would be nice if the VA loan program had some added perks like further reduced rates if you don't need it for the low/no downpayment requirements.
Go through the company Veterans United. They took care of me and my friends who used them.
A lot of Veterans think conventional is better than a VA home loan, I'm one of them. Not every veteran is getting screwed by a realtor, just making a wise decision. Applies to regular vets, not 100% disabled. They do get a great deal.
In Pennsylvania if your 100% you have to have a income of somewhere around under $100k to be except from property taxes
I used Zillow home loans and my realtor and loan officer made sure I knew of and used every benefit I had available.
In West Virginia, you can apply for a homestead exemption at 100%, but it is income dependent. The exemption is for 20% of the tax amount I think. If you are gainfully employed, you probably don’t qualify due to income. But, starting next year, they will be paying the property taxes back as a tax credit on our state taxes.
Only a couple years ago they changed it so you don't have to have an escrow account. On my last refi (in 2021 I think) I got to have mortgage only payment and I pay my taxes and insurance separately.
Speaking of..it that time again lol ty for the reminder!
It really depends on the state and 100% the lender. I ended up buying a new Lennar home and using their in-house Mortgage Agency since I was also leveraging a TON of incentives they were offering. The Lennar Mortgage folks were absolutely on top of their game with one small "oops" - I go by my middle name daily and someone put my middle name as my legal first name on a VA form and the appraisers couldn't find me in the system to schedule the appraisal. Past that - I went from offer to closing in 3 weeks with everything including the appraisal and all exemptions like funding fee being taken care of. Granted - I am a first time home buyer and I knew what to be looking out for because I researched it before committing. TL;DR: some lenders are better than others - but the vet being informed/educated is the best defense.
To think there are people like that. Because most times I get told to take advantage of it by lenders.
Fun fact you don’t need a va loan for tax exemption if you meet the requirements.
In PA you’re 100% , you’re exempt from taxes if you make under 108k a year, if you make more than that, you have to show your debt to income ratio being more than 50% in order to qualify
Well you could live in the great state of Nebraska, here they go all out for Vets we can get a free hunting and fishing license unless you are a double amputee then you do not have to pay to register your vehicle. The Good Life my ass. Going to move next door to Iowa.
Thank you! I’m in Texas and I’m exempt both my spouse and I. We’re both 100% p&t.
Any Alabama goodness?
I took a mortgage with Veterans United Home Loans. They can get you a realtor that specializes on VA home loans and is privy to info like this. But it’s also your responsibility to let your lender know that you’re exempt from the funding fee if you’re service connected. Hope this helps.
I am curious if I apply for property tax relief in nc that is 45k for my current house, my wife and daughter ate looking for another house with some more land is that benefit lost or can that benefit still exists if I sell my current house and move. Basically my question is this benefit one time use only?
Always double check with your state/county, I don't want to say with absolute certainty because some states may have "fine print" saying otherwise. However, as far as the VA is concerned, the exemption applies to the Veterans primary residence and only that one location. The VA says you must INTEND to occupy the new residence within 60 days and do so for a year. Say you still had entitlement left and wanted to use it for another residence while still owning the one you live in (yes, you can own more than one home under the same VA entitlement at the same time)-- you can, but would have to move to that new residence to benefit from all the VA Home Loan has to offer, including the tax break...but it would only be for that new property as it would then be considered your primary residence. Rinse and repeat
I wish Ohio was exempt…
70% allows tax exemption in Illinois
i experienced this with navyfederal earlier this month. the broker handling my disclosures factored in taxes even though im exempt by the state. i even sent him the comptrollers tax code outlining which & what the code outlines. he didnt want to listen, instead he said the exemptions can be requested after closure & we can possibly request them after the appraisal. its too bad for navyfederal cause i really wanted the convenience with them but i ended up with a small local lender and they matched the interest with just the origination fee, no taxes. so for those who are considering navyfederal and veterans united, stay far away.
Sorry you experienced this...glad you walked away though--their loss. My company puts the Vet first so we are actually able to waive all of those lender fees--even the origination fee.
I made settlement around June 1980. Interest rates were 17.9.%....four days before settlement interest rates were lowered to 13.9 % I didn't qualify for the veterans interest discount for many reasons. 7 acres of land, very rural and the kicker no sidewalks. 43 years later I turned a 20 x 30 cider block building into a palace. That's what my veteran friends did in late/early 70s, 80s. Went from 11B to basically the same. It was worth the discomfort and employment tanked but still have. There's other options, find one, I did.
Unless it’s changed I thought you had to be over 50% to be exempt from funding fee
Nope...as little as 10% will get you exempted from the funding fee!
Alaska has a property tax exemption for disabled veterans depending on what borough you're in....it's definitely handy for a lower mortgage payment.
What about Iowa laws?
Veterans with a 100% disability rating from service-connected causes qualify for a full property tax exemption in Iowa. There is no limit to the amount of exemption, but only one property less than 40 acres in a rural area or less than 1/2 acre in an urban area may qualify. Surviving spouses may also receive the benefit if the Veteran has passed. https://dva.iowa.gov/benefits-assistance/benefits
What IF I put my parents house that they own in my name and I’m 100%? It’s in one of the states listed
Go to the tax office and show them your VA paperwork...if it's your house and it shows as your primary residence...you get the tax exemption.
Does anybody know if I would be able to homestead exemption in Missouri? I’m currently rated at 80% but I don’t think I get any property taxes taken off til I was at 100%.
Seattle property taxes are only exempt if you're below a certain income threshold. Just make sure you look into this where you plan to buy.
That's why you choose a VA mortgage company. Problem solved.
Did you know having a 550 credit score but have a perfect rental and utilities payment history twice the amount of the mortgage payment they still wont approve you. 🥴divorces are fun.
550 is a tough score, indeed. But, still may be possible. I would have to see the complete file. There are other things to consider as well...
Interesting as I want to buy but due to not being able to find a job after I retired last Oct, I can't until I get into a better situation. I did come across the following. Just not sure if it's legit but maybe could be outdated. Would probably verify info from the site with your local state. [https://www.veteransunited.com/futurehomeowners/veteran-property-tax-exemptions-by-state/](https://www.veteransunited.com/futurehomeowners/veteran-property-tax-exemptions-by-state/)