Virginia 100% Disabled Veterans Get VA Loan Funding Fee Waivers and Total Property Tax Exemption
A 100% permanently and totally disabled veteran in Virginia receives a complete VA loan funding fee waiver—saving 1.4% to 3.6% of the loan amount—plus a 100% property tax exemption on their primary residence with no value cap or income test . These benefits combine with the VA loan’s $0 down payment and no PMI requirements to make homeownership exceptionally affordable for qualifying Virginia veterans.
Quick Facts
| Item | Details |
|---|---|
| VA Funding Fee | 100% waived for veterans with any service-connected disability rating |
| Virginia Property Tax Exemption | 100% exemption; no value cap; no income test |
| VA Loan Down Payment | $0 down with full entitlement |
| Application | Apply for property tax exemption through local Commissioner of the Revenue |
| VA Loan Eligibility | Active duty, veterans, National Guard, Reserve, surviving spouses |
| Required Forms | VA Form 26-1880 (COE), VA Summary of Benefits letter |
| Updated For | 2026 (2024 regulation amendments on refunds)Â |
Understanding the VA Loan for 100% Disabled Veterans
The VA home loan program is a powerful benefit that helps service members, veterans, and surviving spouses purchase homes with favorable terms. For 100% disabled veterans, the benefits are even more substantial.
VA Loan Benefits for All Eligible Veterans
VA loans offer several advantages over conventional mortgages:
100% financing – No down payment required in most casesÂ
No private mortgage insurance (PMI) – Significant monthly savingsÂ
Easier credit qualifying – More flexible credit standardsÂ
Limited closing costs – VA restricts what lenders can charge
VA disability counts as income – Stable, tax-free income for qualificationÂ
VA Loan Eligibility
Who qualifies for a VA loan:
Active duty service members (90 consecutive days of active service)Â
Veterans with qualifying service length depending on era servedÂ
National Guard and Reserve members (6 years of service or 90 days active duty under Title 10 orders)Â
Unremarried surviving spouses of veterans who died in service or from a service-connected disabilityÂ
Documentation needed: Certificate of Eligibility (COE) – obtainable through VA.gov, your lender, or VA Form 26-1880 .
The VA Funding Fee: What It Is and How 100% Disabled Veterans Avoid It
What Is the VA Funding Fee?
The VA funding fee is a one-time charge paid at closing that helps sustain the VA loan program for future veterans . The fee ranges from 1.4% to 3.6% of the loan amount depending on factors like down payment size and whether this is a first or subsequent use .
How it works: The funding fee can be rolled into the loan balance, requiring no out-of-pocket cash at closing . For a $400,000 home, this could mean a $5,600 to $14,400 fee that is typically added to the loan.
The Disability Exemption
Veterans May Qualify for Extra Benefits
Check available financial assistance, healthcare programs and other opportunities that may apply to you.
Check EligibilityVeterans receiving VA disability compensation for any service-connected disability are completely exempt from the funding fee . This includes:
Veterans with a 10% or higher disability ratingÂ
Active-duty service members awarded the Purple HeartÂ
Veterans eligible through a pre-discharge exam or ratingÂ
Surviving spouses receiving Dependency and Indemnity Compensation (DIC)Â
For 100% disabled veterans: The savings are substantial. On the median Virginia home price around $400,000, the funding fee exemption saves between $5,600 and $14,400 upfront .
Funding Fee Refunds
If you’re later awarded VA disability compensation with an effective date before your loan closing, you may be eligible for a funding fee refund . Contact your VA regional loan center at 877-827-3702 to discuss eligibility.
Virginia’s 100% Property Tax Exemption for Disabled Veterans
What the Exemption Provides
Virginia law provides a complete (100%) exemption from local real property taxes for veterans with a 100% service-connected, permanent, and total disability .
Key features:
No value cap – The full assessed value of the home is exemptÂ
No income test – No income limits applyÂ
Applies to primary residence only – The property must be occupied as the veteran’s principal place of residenceÂ
Includes one acre of land – The dwelling plus up to one acre is exemptÂ
Eligibility Requirements
For veterans:
100% permanent and total service-connected disability rating from the VAÂ
Property must be the veteran’s primary residenceÂ
Must own and occupy the propertyÂ
For surviving spouses:
Veteran’s death occurred on or after January 1, 2011Â
Surviving spouse must not remarryÂ
Can move to a different Virginia locality and keep the exemption (since 2019)Â
No restriction on moving to a different principal place of residenceÂ
What About Land Over One Acre?
The 100% property tax exemption applies to the primary residence and up to one acre of land . If you own a home on more than one acre, the dwelling and first acre are fully exempt. The remaining acreage is taxed at the standard county rate . However, some localities may provide an exemption for additional acreage if they offer greater exemptions to other qualifying residents .
How to Apply for the Property Tax Exemption
Step 1: Gather required documentationÂ
VA Summary of Benefits letter showing 100% permanent and total disability
Proof of residence occupancy (valid Virginia driver’s license or other proof)
Proof of ownership
Step 2: Complete local application form
Veterans may complete the application before receiving the VA Summary of Benefits letterÂ
The application is not complete until the VA letter is provided
Step 3: Submit to your Commissioner of the Revenue
File with the Commissioner of the Revenue or assessing official in your localityÂ
Applications can be accepted year-round
Step 4: Re-file if you move
If you change your principal place of residence, you must re-file the application and notify the previous jurisdictionÂ
Refund Eligibility
While there is no deadline to apply for the exemption, 2024 regulatory amendments removed a limitation period regarding when veterans are eligible for refunds of paid property taxes . Veterans may be eligible for refunds of taxes paid prior to the exemption being granted .
Combining Benefits: VA Loan + Property Tax Exemption
A 100% disabled veteran in Virginia can combine the federal VA loan benefits with the state property tax exemption to achieve exceptional homeownership savings.
Monthly savings example (based on a $400,000 home in Stafford County):
| Benefit | Savings |
|---|---|
| VA funding fee waiver | $5,600-$14,400 upfront |
| Property tax exemption | ~$450/month or ~$5,400/year on $400,000 home |
| No PMI | ~$200-$300/month vs. conventional loan |
| $0 down payment | No savings required for down payment |
Key Points for Homebuyers
Your 100% VA rating serves two purposes:
It qualifies you for the federal funding fee exemption at any rating level (10% or higher qualifies)Â
It qualifies you for the Virginia 100% property tax exemption (requires 100% P&T rating)Â
The property tax exemption can affect your loan: Since the tax exemption eliminates the need for property tax escrow, your monthly mortgage payment is lower. The VA loan program’s underwriting will account for this reduced obligation .
Joint ownership considerations: If the property is jointly owned by individuals who do not all qualify for the exemption, the exemption is prorated based on the ownership percentage held by the qualifying veteran .
Other Virginia Benefits for 100% Disabled Veterans
Beyond VA loans and property tax exemption, Virginia offers additional benefits:
State Income Tax Exclusion for Student Loan Discharge
2025-2026 update: Virginia passed legislation (HB2062) eliminating the sunset date for the income tax exclusion on federal student loan discharge for 100% disabled veterans . This means veterans with a 100% service-connected permanent disability can continue to exclude discharged student loan amounts from their Virginia adjusted gross income permanently .
Recreation Benefits
Hunting and freshwater fishing:Â 100% disabled veterans receive a free lifetime licenseÂ
State parks:Â Free admission and parking at Virginia state parks, with discounted camping, swimming, shelters, and equipment rentalÂ
Vehicle Tax Exemption
Veterans with specially adapted vehicles for disabilities are exempt from vehicle taxesÂ
One motor vehicle is also exempt from local personal property tax for 100% P&T veteransÂ
Other State Benefits
Virginia’s Military Survivors and Dependents Education Program (VMSDEP): Up to 8 semesters tuition-free for qualifying dependents and survivorsÂ
In-state tuition rates at Virginia public universities for veterans, active duty, and Guard membersÂ
State employment preference for veterans and spouses of disabled veteransÂ
Virginia Housing Closing Cost Assistance that can stack with VA loansÂ
Common Questions
Do 100% disabled veterans have to pay the VA funding fee in Virginia?
No. Veterans with any service-connected disability rating are completely exempt from the VA funding fee . This exemption applies automatically with your Certificate of Eligibility, and the savings can range from 1.4% to 3.6% of the loan amount.
Does Virginia have a property tax exemption for 100% disabled veterans?
Yes. Virginia provides a 100% property tax exemption with no value cap and no income test . The exemption covers the primary residence and up to one acre of land . Surviving spouses who do not remarry may continue the exemption .
What is the VA loan limit in Virginia for 100% disabled veterans?
With full entitlement (meaning no other active VA loan), there is no loan limit anywhere in Virginia . You can buy at any price point with $0 down. The published county limits ($832,750 for most counties, higher in Northern Virginia’s high-cost D.C. metro) only apply to veterans using partial entitlement .
Can surviving spouses keep the property tax exemption and use a VA loan?
Yes. An unremarried surviving spouse of a qualifying disabled veteran can keep the full property tax exemption and can carry it to a new Virginia home if they move . Surviving spouses may also have their own VA loan eligibility. These are separate benefits .
What documentation is needed to apply for the Virginia property tax exemption?
You need a VA Summary of Benefits letter confirming your 100% permanent and total disability rating, proof of residence occupancy (Virginia driver’s license or other proof), and proof of ownership . Veterans can apply before receiving the VA letter, but the application isn’t complete without it .
Is the Virginia property tax exemption automatic once I get the VA rating?
No. You must actively apply through your local Commissioner of the Revenue . The exemption is not automatic.
Does VA disability count as income for a mortgage in Virginia?
Yes. VA disability compensation is accepted by lenders as stable, tax-free income for mortgage qualification . It can help you qualify even if your work income is limited .
Does Virginia tax VA disability compensation?
No. VA disability compensation is never subject to Virginia state income tax .
Key Takeaways
100% disabled Virginia veterans pay $0 VA funding fee—saving 1.4% to 3.6% of the loan amount .
Virginia’s property tax exemption is one of the strongest in the nation—100% with no value cap or income test .
The exemption covers the primary residence and up to one acre of land .
Surviving spouses can continue the exemption and carry it to a new Virginia home .
Apply for the property tax exemption through your local Commissioner of the Revenue .
VA loans with full entitlement have no loan limit in Virginia .
VA disability compensation counts as income for mortgage qualification .
2024 regulation changes improved refund eligibility for veterans .
Virginia disabled veterans also get recreation benefits, including free state park access and lifetime hunting/fishing licenses .
Student loan discharge is now permanently tax-exempt in Virginia for 100% disabled veterans .
Official Resources
U.S. Department of Veterans Affairs – VA Loans: www.va.gov/housing-assistance/home-loans
Virginia Department of Veterans Services:Â www.dvs.virginia.gov
Virginia Code § 58.1-3219.5: Full text of property tax exemption law
Virginia Register of Regulations 1VAC80-10:Â Official exemption regulations
Virginia’s Commissioner of the Revenue (local): Contact information for your locality
VA Form 26-1880:Â Request for Certificate of Eligibility
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