Veteran Home Benefits

Rated 100% by the VA? Here Is What It Means for Your Home.

A 100% rating changes the math on buying a home in California. You skip the VA funding fee, you can take a real bite out of your property taxes, and your tax-free compensation counts when you qualify. I'm a Marine Corps veteran and a VA loan Realtor, and this is the real estate side of a 100% rating, in plain English.

Written by Luis, Military and VA Realtor serving North County San Diego
Updated October 2026

At a Glance

Three Ways a 100% Rating Changes a Purchase

01

No funding fee.

Veterans who receive VA compensation for a service-connected disability skip the VA funding fee. On a $750,000 purchase with zero down, that is $16,125 on a first use and $24,750 after it.

02

Lower property taxes.

In 2026, California takes $180,671 off the assessed value of a qualifying veteran's home, or $271,009 if household income is under $81,131. That is roughly $2,000 to $3,000 a year back in your pocket.

03

Income that counts.

Your compensation is tax-free and steady, so lenders count it toward qualifying, and it gives your residual income a lift on a VA loan.

Funding Fee

No VA Funding Fee

Most VA buyers pay a one-time funding fee: 2.15% of the loan on a first use with less than 5% down, and 3.3% after the first use. You don't, as long as you receive VA compensation for a service-connected disability. That exemption applies at any compensable rating, 100% included, and to surviving spouses who receive Dependency and Indemnity Compensation.

Make sure your Certificate of Eligibility shows you as exempt before closing, so the fee never lands on your statement. And if your rating comes through after you close, with an effective date before your closing date, you may be eligible for a refund of the fee you paid.

Property Taxes

The California Property Tax Exemption

California's Disabled Veterans' Exemption is for veterans rated 100%, paid at the 100% rate for unemployability, or blind or without the use of two or more limbs from service. In 2026 it takes $180,671 off your home's assessed value, or $271,009 if household income is under $81,131. Unmarried surviving spouses can qualify too.

It is not automatic. You file with your county assessor, and timing matters in your first year, so file as soon as you close. My California Guide covers who qualifies and how to file, and the San Diego County page has the local deadlines.

Qualifying

Your Compensation Counts as Income

Lenders count VA disability compensation as income. Because it is tax-free, many lenders gross it up when they figure your debt-to-income ratio, and it helps you clear the VA's residual income test, the check that makes sure you have enough left over each month after your house payment and other monthly obligations.

Zero down comes from the VA loan itself, not the rating, and with full entitlement there is no VA loan limit. Put those together with the funding fee exemption and the property tax break, and a 100% rating can noticeably raise the price range you can comfortably buy in.

Grants

Grants to Adapt Your Home

If your disability affects how you get around your home, VA housing grants can help you buy, build or change a home to fit. For fiscal year 2026, the Specially Adapted Housing grant goes up to $126,526 and the Special Housing Adaptation grant up to $25,350. They depend on the type of disability, such as loss of use of limbs, blindness or severe burns, not just the rating.

You can use these grants up to six times over your lifetime. When we shop, I look for homes that make adaptations practical: single-story layouts, wide hallways, level entries and lots with room for a ramp.

The Math

What It Adds Up To

Take a $750,000 home in North County, bought with zero down on a second VA loan. The funding fee you skip is $24,750. The basic property tax exemption saves roughly $2,000 a year at a typical rate of about 1.1%, which adds up to about $20,000 over ten years.

That is real money you keep, whether you put it toward a better home, a bigger cushion, or the next move. My April article on how 100% VA disability changes your buying power walks through a full sample purchase.

Questions

100% Disabled Veteran Questions, Answered

The questions I get most from veterans with a 100% rating who are thinking about buying. If yours is not here, call or text and ask it.