VA Disability Rates (2026): Current Pay Charts & Updates

Most veterans don’t realize this: your VA disability check is a mortgage-ready weapon.

You served your country-and now your benefits can serve you back. In 2025, a 100% VA disability rating can translate into $4,500/month of tax-free, lender-approved income-even if you’re not working.

Here’s what most loan officers won’t tell you:

• VA disability income qualifies for a home loan-even without a job.
• Tax-free compensation is "grossed up" by lenders, boosting your borrowing limit.
• Disabled veterans pay no VA funding fee-saving you $5K–$10K instantly.

Bottom line: Your benefits unlock homeownership with zero down, no agent commissions, and higher approval odds-even if you're not employed.

In this guide, we’ll break down exactly how to turn your disability income into mortgage power-with updated 2025 VA disability pay charts, loan eligibility tricks, gross-up strategies, and how to skip real estate commissions with reAlpha.

Bonus: Already wondering “can I get a VA home loan with disability income?” → Explore how VA loans work

Bottom line: Yes-VA disability income qualifies as stable mortgage income, even if you're unemployed. And because it’s tax-free, lenders may count up to 25% more toward your approval.

Here’s how it stacks up vs. traditional income:

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What is grossing up?

Lenders increase the value of non-taxable income like VA disability by 15-25% on paper. That means a $4,500 disability check could count as $5,175–$5,625 in mortgage math-instantly boosting your buying power.

Bottom line: Yes, your VA disability check is considered qualifying income-and it can dramatically increase your mortgage approval odds.

Here’s why it’s so powerful in the eyes of lenders:

• It’s stable. VA disability income is considered consistent, long-term, and reliable-key for underwriting.
• It’s non-taxable. That means it gets “grossed up”-boosted by 15-25% to match taxable salary.
• It’s job-independent. Even if you’re not employed, this income can qualify you alone for a VA mortgage.

Example: A 100% disabled veteran receiving $4,500/month tax-free could be approved as if they earned $5,625/month gross. That’s nearly $1,125/month more in buying power.

Lender Insight: Most banks will accept disability income as your only source for VA loan approval-no job required if your debt-to-income (DTI) ratio fits.

Wondering if your benefits qualify? Check your eligibility now.

Wondering how much you’ll get from VA disability in 2025? These are the exact, tax‑free monthly rates based on your disability rating and dependents-used by lenders to assess your qualifying income for a VA loan.

How the Table Works

• Rates effective December 1, 2024, with a 2.5% COLA (Cost of Living Adjustment) applied.
• VA disability income is tax‑free, which allows lenders to often "gross up" non‑taxable income-meaning the effective qualifying amount can be higher.
• Dependents include spouse, children, parents (if you support them). Additional pay for spouses with Aid & Attendance, extra children, etc.

Special Cases:

• For ratings 10% & 20%, dependents do not increase your VA compensation-no extra pay for spouse/children/parents.
• If your spouse qualifies for Aid & Attendance, or if you have multiple dependent children, you may get additional compensation beyond the basic table.

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These rates show what lenders see when considering your VA disability as income.

With a 100% rating + dependents, your income might exceed $4,200/month, enabling much higher mortgage limits. (With potential gross‑up, this could stretch even further.)

Even lower ratings (30%‑60%) plus dependents can push your qualifying income into ranges many stable middle‑income civilians can’t match-without needing a traditional job.

Want to see exactly how your specific disability rating + dependents = mortgage power?

Use our VA Disability Pay Scale page here: How Much is 100% VA Disability, and see your estimated monthly income and see what loan amount you might qualify for.

Yes, you can qualify for a VA loan using only your VA disability income-even without a job.

Unlike traditional loans that require W‑2s or pay stubs, VA loans are built for veterans-especially those living on service-connected disability compensation. Here’s how it works:

• VA disability income is stable and backed by the U.S. government.
• It’s non-taxable, so lenders often "gross up" the income by 15-25%.
• Lenders only need to verify income sufficiency and debt-to-income (DTI) ratio-not employment.

Example: A 100% disabled veteran receiving $4,500/month tax-free could qualify as if they earned $5,625/month gross-with no job required.

VA Underwriting Insight: Lenders treat VA disability income as equal-if not superior-to employment income. You can qualify for $250K–$500K+ home loans depending on your credit, debts, and region.

Need help running the numbers? Let us know, we’ll help you out.

If you're rated 100% disabled by the VA, you're sitting on a goldmine of mortgage advantages-most veterans don’t realize how powerful these benefits are.

Here’s what you unlock with a 100% VA disability rating:

Mortgage Benefits Checklist

• Funding Fee Waiver: Save $5,000–$10,000 upfront. No VA funding fee is required-ever. This one benefit alone makes homeownership instantly more affordable.
• No Job Needed: Your monthly VA disability income-up to $4,500+ tax-free-qualifies by itself for mortgage approval, even with no current employment.
• Higher Grossed-Up Income: Because it’s non-taxable, lenders "gross up" your disability pay by 15-25%-giving you more buying power on paper than your civilian counterparts earning the same.
• Property Tax Exemptions: In many states, 100% disabled veterans are eligible for partial or full property tax exemptions-lowering monthly expenses and increasing affordability.
• Streamlined Underwriting: 100% disabled vets often benefit from less stringent documentation requirements and faster loan approval timelines.
• Access to VA IRRRL and Cash-Out Refi Options: Need to refinance? You can access Interest Rate Reduction Refinance Loans (IRRRL) with minimal red tape-and no appraisal or income verification in many cases.

🔗 Find out if you qualify for VA loan funding fee waivers.

Bottom line: If you’re receiving VA disability pay, you may be approved for 15-25% more loan than you think-thanks to a lender trick called “grossing up.”

Gross-up means lenders adjust non-taxable income upward to reflect its pre-tax value-so your VA disability check looks more like a salary in their eyes.

Here’s the math:

Grossed-Up Income = Tax-Free Income × (1 + Gross-Up Rate)

E.g., $4,500 VA Disability × 1.25 = $5,625/month qualifying income

That’s an extra $1,125/month on paper-without earning more.

• Higher income = higher loan approval
• Lower debt-to-income ratio (DTI) = better terms
• No job? No problem-this boost alone can make you mortgage-ready

Most lenders apply a 15-25% gross-up, depending on the underwriter and loan type.

Expert Insight: Not all lenders use the same gross-up rate-working with a VA loan specialist (like reAlpha Mortgage) ensures you get every dollar counted.

Bottom line: You’ve earned more than just a monthly benefit-your VA disability rating can unlock thousands in real homebuying savings. And reAlpha helps you keep more of it.

We’re a vetted VA lender-your disability income is fully understood, respected, and optimized for approval.

Veterans buying with reAlpha get back:

• 0.5% of the real estate agent commission
• 1% of the mortgage commission
• 1.5% of the title commission

We don’t just understand the VA loan system-we optimize it. Get help with income calculations, gross-up strategies, and property tax waivers tailored to your rating.

Prequalify, compare, and close-entirely online, with licensed support at every step.

Don’t let your service-earned income sit unused. Turn it into pre-approval power, zero-down buying, and cash-back commissions.

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You served. You sacrificed. Now it’s your turn to win-with reAlpha in your corner.