Note: These rates are adjusted annually based on the Cost-of-Living Adjustment (COLA). Always refer to VA.gov for the most current figures.

What Impacts Your VA Compensation?

1. Disability Rating (10%-100%)

This rating is based on the severity of your service-connected conditions. If you have multiple conditions, VA uses a combined rating table, which is not a simple addition.

2. Dependents

You may qualify for additional compensation if you have:

• A spouse
• Children under 18
• Children 18-23 in school
• Parents who are financially dependent on you

3. TDIU (Total Disability Individual Unemployability)

If your conditions prevent you from working, you may qualify for 100% compensation, even if your official rating is below 100%.

4. COLA Adjustments

Each year, Congress adjusts the benefit amount to keep pace with inflation.

Explore how VA ratings are calculated

‍Common Questions From Veterans

Is VA disability income taxed?‍

No. VA disability compensation is 100% tax-free.

Can I receive housing assistance if I’m partially disabled?

Yes. Veterans rated 10% and above may qualify for additional benefits such as:

• Specially Adapted Housing (SAH) or Special Home Adaptation (SHA) grants
• Waived VA Loan Funding Fee for disabilities rated 10%+

I’m rated at 90%. Can I appeal for 100%?‍

Absolutely. Many veterans qualify for 100% compensation through TDIU if they cannot maintain gainful employment due to service-connected conditions.

Using VA Disability Benefits to Buy a Home

Your VA disability compensation doesn’t just cover bills—it can help you become a homeowner.

Benefits of a VA Home Loan:

• $0 down payment required
• No PMI (Private Mortgage Insurance)
• Flexible credit requirements
• Lower average interest rates
• Funding fee waived for veterans with 10%+ disability rating

Understand the VA loan funding fee rules

Commission-Free Home Buying with reAlpha

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.

Why reAlpha?

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

Who's Really Got Your Back?

Bottom line:

If you're a disabled veteran, you deserve service that understands your benefits and puts more of your money back in your pocket.

Your Disability Pay Is the Engine. Let’s Give It Wheels.

Here’s what your future could look like:

• A home purchased with zero down
• No agent commission eating into your equity
• Relief from rent and rising costs
• Peace of mind knowing you used your benefits to the fullest

Your disability check is earned income. Let’s put it to work for you—starting with a home of your own.

FAQ: VA Disability & Housing in 2025

How does TDIU affect my ability to work?

TDIU (Total Disability Individual Unemployability) lets you receive 100% pay without a 100% rating, but working full-time could disqualify you. Check income limits.

Can VA disability be used to get pre-approved for a mortgage?

Absolutely. Lenders can count your tax-free disability pay when assessing your mortgage readiness.

Do I pay taxes on my VA disability compensation?

No. Your VA compensation is 100% tax-free, even at the state level.

Will a 10% disability rating waive my VA loan funding fee?

Yes. Any rating 10% or higher qualifies you for a funding fee exemption.

Can VA disability be combined with other benefits?

Yes, you can combine it with Social Security, retirement, or even military pensions, depending on eligibility.

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.