| You still have both legs. You still show up to work. And filing for VA disability feels like taking something that belongs to someone worse off, so you keep putting it off while the knee and the back get worse and the ringing in your ears gets louder.Trinidad Aguirre, CEO of VetsForever, calls your VA compensation pay you earned and have not fully received yet. It also changes what a house costs you: according to VA.gov, the VA home loan funding fee does not apply when you receive VA compensation for a service-connected disability. Markian Sich, founder and CEO of Active Duty Passive Income, says you can use a VA loan again after you sell. |
Chapters:
- 00:00 Introduction to VA compensation and real estate
- 02:19 Understanding disability and compensation perspectives
- 04:31 Transitioning from military to civilian life
- 06:58 The importance of VA benefits
- 09:20 Cash flow and real estate investment strategies
- 11:51 Valuing quality of life and compensation
- 14:58 Navigating the challenges of veteran life
- 16:49 Understanding VA home loans and their benefits
- 19:42 Real estate as a wealth-building strategy
- 22:09 Using VA loans multiple times for investment
- 26:50 Building a financial strategy around real estate
Why does the word disability sit wrong with so many veterans?
You were taught the mission and the team come first, and somewhere that turned into never taking anything for yourself. You have heard the line, or said it: “I’m not a combat vet, so I’m okay.” Markian and Trinidad hear it all the time.
Markian treats compensation as part of the service package. Any civilian job lays out the comp package before you sign, and service had one too. VA compensation is the part that pays out later.
Markian had a titanium rod in his leg from before service. Service aggravated it, he had it removed, and now soccer with his kids is harder. What is your version of that costing you? Only you can answer. Trinidad asks it another way: is your quality of life better, the same, or worse than it would have been?
Answer it straight.
If the answer is worse, that is your reason to look into filing. The percentage comes later, from VA’s criteria and the evidence in your file, and nobody can promise you a number.
What does your rating do for the cost of a VA home loan?
The funding fee is where it shows up first. On a purchase loan with less than 5% down, VA.gov lists the fee at 2.15% for a first-use loan and 3.3% after first use, charged on the total loan amount.
On a $500,000 loan, that is $10,750 at 2.15% and $16,500 at 3.3%. Roll it into the loan if you want. You still owe it, and Markian compares the fee to the price of a car.
Markian’s bigger point is the monthly payment. Buy with little or nothing down on a VA loan, and your compensation can go toward the mortgage. Bring your award letter to the lender and ask how it counts your compensation as income. Get the funding fee exemption confirmed in writing.
Can you use a VA home loan more than once?
Yes, with limits. Markian says the loan is built for your first home, and after you sell you can restore your entitlement and use it again. He knows people who have used it more than twice. If your situation changes while you still own the home, you can write VA a letter and ask.
Entitlement has conditions, so have a lender pull your number before you plan purchase number two.
Markian’s real estate plan is one way to do it
He wants money coming in every month, so he put real estate first and arranged his benefits around it. Markian teaches real estate for a living, and VetsForever does not give financial advice. Check his plan against your own budget first.
Check who is working on your claim
Before anyone touches your claim, check their VA accreditation. Trinidad says accredited VSOs like the VFW and DAV come first, and for harder claims there are VA-accredited agents and attorneys. VA’s accreditation database lets you search for one near you or one who works virtually.
Frequently Asked Questions
What if your rating comes after you close on a home?
VA.gov says that to get a refund of a funding fee you already paid, the effective date of your VA compensation must be retroactive to before your loan closing date. VA sets effective dates under 38 C.F.R. § 3.400, and when you file affects the date VA can assign. If you plan to buy, file before you close.
Can you skip the funding fee before you leave the service?
Two situations on VA.gov cover you while you are still in uniform. You are exempt if you received a proposed or memorandum rating before your loan closing date, or if you are eligible for compensation but receiving retirement or active-duty pay instead. Ask the lender which one fits you.
Do you pay closing costs on a VA loan?
You can, and they are negotiable. Markian says they can go to zero with the lender and agent working it, so look for an agent who negotiates at closing. Get the full estimate in writing and read every line.
What if you have to move before you have lived in the home for a year?
Plan to live in the house for a year when you buy. If orders move you before then, you can rent the home out. What you cannot do is sign loan paperwork saying you will live there when you do not plan to.
How do you keep track of your conditions before you file?
Write everything down and go to every appointment. Put the sore thumb on the list too. Those notes and appointment records are evidence in your file.
Where VetsForever fits in
If you are not sure your condition counts, or what effective date VA could assign, VetsForever can look at what you have.
VetsForever is a veteran-founded organization. We provide legal representation through VA-accredited representatives for VA disability claims, appeals, and military discharge upgrades. Our VA-accredited representative has direct VBMS access to your VA file. Serving veterans nationwide.
