VA Loan Myth: Disability Compensation Counts as Qualifying Income With Travis Egan
The Myth That Costs Veterans Buying Power
A common myth in military home buying is that VA disability compensation does not count as income for a home loan. Travis Egan says the opposite is true. It absolutely counts, and it is often treated very favorably in the qualifying process.
Why Disability Pay Is Treated So Favorably
VA disability compensation is non-taxable income. Because it is not taxed, it can be grossed up when a lender calculates qualifying income, which means it can help a borrower qualify for even more than the raw dollar amount would suggest. For many veterans, that can make a meaningful difference in the price range they can comfortably afford.
A Perspective From Both Sides of the Table
Travis is rated himself, so he understands how this works from both the lending side and the consumer side. He has seen how disability income is documented, how it is counted, and how it can strengthen a loan file when it is handled correctly.
What to Do If a Lender Says It Does Not Help
If a lender tells you your disability pay does not help you qualify, that is a sign they do not understand VA loans. Veterans who hear that should not assume it is true. Getting a second opinion from a lender who works with VA borrowers regularly can change the outcome.
Have Questions About Your VA Loan?
If you are a veteran wondering how your disability compensation fits into a home purchase, reach out to Travis Egan with your questions. He is here to help. Semper Fi.
Sources
VA.gov
BenefitS.va.gov
ConsumerFinancialProtectionBureau.gov
HUD.gov
Investopedia.com
