US Veteran Home Loans and Tax Benefits
Author: Disabled World : Contact: www.disabled-world.com
Published: 2009-02-06 : (Rev. 2019-10-18)
Synopsis and Key Points:
A list of what each US state offers veterans in regards to home loans tax exemptions and tax benefits.
In 1944 the U.S. congress passed the GI Bill of Rights to help those who served in the armed forces readjust to civilian life.
The VA does not actually lend the money to the borrower, but promises to make good to the lender should the borrower default on the loan.
In 1944 the U.S. congress passed the GI Bill of Rights to help those who served in the armed forces readjust to civilian life. One section of this bill provided loan programs with no money down and low closing costs to veterans.
A VA home loan is actually a guarantee rather than a loan.
The VA does not actually lend the money to the borrower, but promises to make good to the lender should the borrower default on the loan. (See Veterans Affair Home Loans)
What Each U.S. State Offers Veterans
This list will be updated and expanded in the near future and should be read in conjunction with our US Home Loans for Americans with Disabilities seniors, and low income earners article.
The Alaska Housing Finance Corporation (AHFC) administers the Veterans Mortgage Program which offers financing for qualified veterans at lower interest rates. Active duty service in the Armed Forces, Public Health Service, NOAA or service as a cadet at the US Military, Air Force, Coast Guard or Naval Academy may qualify. Loans are generally processed rapidly, require little or no down payment, and often include lower interest. To apply for a loan under this program, contact any AHFC-approved lender.
Homestead and Personal Property Tax Exemption. Arkansas Veterans who have been rated, by the VA, as 100% service connected (Permanent and Total) or awarded Special Monthly Compensation for loss or loss of use of one or more limbs total blindness in one or both eyes are entitled to exemption of Homestead and Personal Property Tax.
Property tax exemptions on the assessed value of a home of: a) Up to $111,296 if the total household income from all sources is over $49,979 per year. b) Up to $166,944 if the total household income from all sources is under $49,979 per year.
Financial Assistance Benefits provides a Property Tax Exemption for 100% SC disabled veterans.
Property Tax Exemptions. Veterans, who have ninety days of wartime service, including Merchant Marines, who served during WWII, are eligible for a $1,500 exemption for property tax purposes (e.g., real property or automobiles). Veterans below a certain income level and/or service connected disabled veterans are eligible for additional property tax exemptions (up to $10,000 for paraplegics).
Each paraplegic veteran eligible for benefits hereunder shall receive a pension from the State of $3,000 per year payable in equal monthly installments at the end of each month in which such veteran is eligible.
Homestead Exemption (10% to 100% BUT not Permanent in nature) Eligible veterans with service-connected disabilities of 10% or more shall be entitled to a $5000 property tax exemption. To qualify for homestead exemption a veteran must be a bona-fide resident of the state. Any real estate used and owned as a homestead by a veteran who was honorably discharged with a service-connected permanent and total disability is exempt from taxation, provided the veteran is a permanent resident of the state on January 1 of the tax year for which exemption is being claimed.
Exemption from Homestead Tax. Certain disabled Veterans and certain widows/widowers, or minor children are allowed the maximum amount under Section 2102 of Title 38 of the United States Code. Exemption from Sales Tax on Vehicles - A disabled Veteran who receives a VA grant for the purchase and special adapting of a vehicle is exempt from paying the state sales tax on the vehicle.
Special Housing for Disabled Veterans - Payment by the State of up to $5,000 to each qualified, totally disabled veteran for the purpose of purchasing or remodeling a home to improve handicapped accessibility.
GI Loan for Heroes - The G-I Loan for Heroes is the new Illinois Homeownership Program for Veterans and Active Service Personnel. The G-I Loan offers significantly below market homeownership financing and counseling. There are two program packages, one for Veterans and one for active duty personnel. Specially Adapted Housing Assistance is provided for service-connected disabled veterans for the purpose of acquiring or remodeling suitable dwelling units with special fixtures or movable facilities made necessary by the veteran's permanent and total service-connected disabilities.
Property tax deductions are available to disabled Hoosier Veterans. A $12,480 dollar deduction is available to veterans who Served at least 90 days of honorable service. Are totally disabled (not necessarily service-connected but the disability must be evidenced by a U.S. Department of Veterans Affairs pension certificate). Are at least 62 years old and 10% service-connected disabled.
The Iowa Veteran's Housing Grant Program gives a $5,000 matching grant to any veteran for the purchase of a home, tax free. To qualify, the service member must have served on active duty under title 10, 90 days or more after 9-11-2001.
The State of Kansas can assistance in locating approved lenders and completing applications for loan guarantees. Certain disabled veterans and military personnel can receive grants to adapt or acquire housing suitable for their needs.
KDVA has a program to offer small sum loans to Kentucky Veterans, however, this program cannot begin until KDVA designs the program and gets approval for regulation on how the program will operate. KDVA hopes to launch the program soon.
Property Tax: Eligible veterans, spouses, and parents. To qualify, all veterans (and spouses where applicable) must: be at least 10% disabled by the U.S. Department of Veterans Affairs and be Legal residents of Massachusetts.
The Minnesota homeless veterans' initiative and rehabilitation services assist veterans and their families in their attempts to regain self-sufficiency.
Persons who are 65 or older, blind, deaf, dumb, or with loss of hand or foot, or loss of use of the hand or foot or who can provide documentation that they are 50% disabled to perform physical labor and whose annual gross income is $900.00 or less are exempt from payment of privilege tax for specified businesses. Service-connected, totally disabled (100%) American veterans who were honorably discharged from military service are exempt from all ad valorem taxes on homesteads of $7,500.00 or less in assessed value.
Agent Orange Settlement Payments made for the Agent Orange Fund to a veteran or his dependents are exempt from state tax.
A homestead exemption provides relief from property taxes by exempting all or a portion of the valuation of the homestead from taxation.
An annual tax exemption is available to any veteran with wartime service (including in-theater service during the Persian Gulf War, Afghanistan and Iraqi Wars). Nevada offers a property tax exemption to any veteran with a service-connected disability of 60% or more. The amounts of exemption that are or will be available to disabled veterans varies from $6,250 to $20,000 of assessed valuation, depending on the percentage of disability and the year filed.
- New Hampshire:
Certain wartime veterans, their wives or widows may be eligible for a property tax credit of $50 ($100 if both are eligible veterans). Cities/towns may vote to adopt a higher tax credit of up to $500. There is a $700 tax credit on real estate occupied as principal place of abode by a permanently and totally disabled service-connected veteran, double amputee or paraplegic or un-remarried surviving spouse.
- New Jersey:
There is an annual property tax deduction of two hundred and fifty dollars for eligible veterans. New Jersey Property Tax Exemption - Eligibility for Veterans who meet all of the following criteria: Served during a specified wartime period. Received an honorable discharge or under honorable conditions. Rated 100 percent permanent service-connected by the VA. The 100 percent rating cannot be temporary or as a result of hospitalization, surgery or recuperation.
- New Mexico:
Any veteran who was honorably discharged from the U.S. Armed Forces and served 90 or more days of active duty and has established legal residency in New Mexico, qualifies for the New Mexico Veterans' Tax Exemption. Any veteran who has been approved for 100 percent service-connected disability compensation benefits by the Department of Veterans Affairs (VA) is eligible for a complete property tax waiver on their primary residence.
- New York:
Partial exemption from real property taxes is based on condition of service, with additional benefits based upon degree of service-connected disability. A New York State Blind Annuity (2008 rate is $1,128.72 annually) is available to visually impaired wartime veterans and certain un-remarried spouses. Gold Star Parent Annuity authorizes an annuity payment of up to $500 per Gold Star parent of a deceased veteran.
- North Carolina:
Grants for Specially Adapted Housing: Grants by the U. S. Department of Veterans Affairs to seriously disabled veterans for homes designed for wheelchair living are exempt from income taxation. Specially Adapted Housing. Disabled veterans who receive U. S. Government assistance under Title 38, United States Code Annotated for the acquisition of specially adapted housing are eligible for an exclusion from ad valorem taxation on the first $38,000 in assessed value of housing together with the necessary land therefore which is owned and used as a residence by the disabled veteran.
- North Dakota:
The Veterans Aid Fund is a permanent fund to be used solely for the purpose of making loans to veterans or their widow/widowers. The maximum loan amount is $5,000. The interest rate is 8% per annum. Time limit can be from six months to 48 months.
Tax Exemption for 100% Disabled Veterans for sales tax, excise tax, and ad valorem tax (Spouse included for ad valorem tax only)
Oregon Veterans' Home Loans - A home loan program for honorably discharged veterans with below market interest rates. The eligibility for the program expires 30 years after discharge from the U.S. Armed Forces. ODVA also offers home improvement loans. Toll free information number 1-800-828-8801. If you are a 40% or more service-connected disabled veteran, you may be entitled to exempt a portion of your homestead property's assessed value from property taxes.
Any honorably discharged veteran who is a resident of the Commonwealth shall be exempt from the payment of all real estate taxes levied upon any building, including the land upon which it stands, occupied by him as his principal dwelling, provided that as a result of wartime military service the veteran has a 100% service-connected disability rating by the U.S. Department of Veterans Affairs.
- Rhode Island:
- South Carolina:
All persons who have been declared permanently and totally disabled by the Social Security Administration, U.S. Department of Veterans Affairs, other state or federal agencies, are eligible for a homestead exemption in an amount set by the General Assembly. This also applies to persons over age 65.
- South Dakota:
Dwellings or parts of multiple family dwellings which are specifically designed for use by paraplegics as wheelchair homes and which are owned and occupied by veterans with the loss, or loss of use, of both lower extremities, or by the un-remarried widow or widower of such veteran, are exempt from taxation. Certain low income property owners are eligible for a property tax refund and should check with their county treasurer for details and assistance in making application. Certain low income persons who are sixty-five, or older, or who are disabled, may qualify for a sales tax refund. The state of South Dakota is paying a veterans' bonus of up to $500 to certain service members.
Property tax relief for combat related 100% totally disabled veterans and/or their surviving spouses.
Disabled veterans who meet certain requirements, their surviving spouses and the spouses and minor children of a person who dies on active duty in the U.S. Armed Forces are eligible for property tax exemptions on the appraised value of their property. A veteran, whose service connected disabilities are rated less than 10% by the Department of Veterans Affairs, or a branch of the Armed Forces, is not entitled to a property tax exemption.
A Utah permanent place-of-residence property tax exemption equivalent to the military service-connected disability rating percentage is provided for disabled veterans or for their un-remarried widows or minor orphans. Veteran's disability rating must be at least 10%. The maximum property tax exemption, rated at 100% military service-connected disability, is $206,214.
The Office of Veterans Affairs provides emergency financial assistance to veterans and their dependents by providing a one-time payment. Applications are processed over the phone or in person.
- West Virginia:
Wisconsin offers a state veterans home loan program, entitled the Primary Mortgage Loan (PML), that is different from the USDVA Home Loan Guaranty Program. The state veterans home loan may be used for: Purchase or purchase and improvement of a single family home or condominium. Construction of a new single family home. Purchase of certain existing 2 to 4-unit owner occupied residence. (Must be occupied as borrower's principal residence.) WDVA Home Improvement Loan - Veterans can borrow up to 90% of your home equity for home improvements. The $25,000 cap has been removed from the Home Improvement Loan Program.
The current property tax exemption also applies to 100% service connected disabled veterans and veterans who have been granted service connected individual un-employability status certified by the United States Department of Veterans Affairs. Exemption applies to county fees, not state fees. Maximum exemption is $800.00. Maximum yearly deduction is approximately $150.00 per year for property taxes.
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