Short answer: Yes. A 100% service-connected disability rating does not limit your VA loan eligibility. In fact, it can lower your upfront costs, improve your qualifying ratios, and may reduce your property taxes.

Veterans and surviving spouses with a 100% VA disability rating who want to buy or refinance a home in the Portland metro or SW Washington

Key Advantages at a Glance
• Funding Fee Waived: If you receive VA disability compensation, the one-time VA funding fee is waived. That’s thousands saved upfront.
• No Down Payment (with full entitlement): 0% down available, subject to appraisal and lender approval.
• No PMI: VA loans don’t require monthly private mortgage insurance.
• Competitive Rates: The VA guaranty lets lenders offer sharp pricing.
• Tax-Free Income Helps You Qualify: VA disability pay is non-taxable and can be “grossed up” by lenders for qualifying (often up to 25%), improving your debt-to-income (DTI) ratio.
• Potential Property Tax Relief: Oregon and Washington offer property tax exemptions/reductions for qualifying disabled veterans (programs vary by county).

Eligibility Basics
You’re eligible for a VA loan with 100% disability if:
1. You meet VA service requirements and have a valid Certificate of Eligibility (COE).
2. You can document stable income (disability comp counts) and meet lender credit/DTI standards.
3. The home will be your primary residence (VA loans are for owner-occupied properties).
Good to know: A 100% rating does not automatically approve your loan—you still need to qualify with income, credit, and acceptable property condition. But your benefits make that path easier.

How “Grossing Up” Works (Why It Matters)
Because VA disability compensation is tax-free, most lenders will “gross up” that income for qualifying—effectively increasing the income used in your DTI calculation (commonly +25%, though lender policy can vary).
Example:
• Actual VA disability income: $4,000/mo (tax-free)
• Gross-up at 25%: $5,000/mo qualifying income
• Result: Lower DTI on paper → easier to qualify or qualify for more home at the same payment.
Tip: If you receive other tax-free income (e.g., certain military allowances), those may be grossed up too. Lender guidelines apply.

Oregon & Washington Property Tax Relief (Local Insight)
Many counties offer property tax exemptions or reductions for 100% disabled veterans. The details vary (income thresholds, application windows, documentation), but the savings can meaningfully reduce your monthly housing cost.
• Oregon: Exemptions typically based on service-connected disability and may adjust annually.
• Washington: Programs often include exemptions or deferrals for disabled vets; county assessor administers.
Action Step: We’ll help you pull the local requirements and file the application with your county assessor after closing.

What You Can Buy with a VA Loan
• Single-family homes, townhomes, condos (VA-approved), some manufactured homes
• Multi-unit (2–4 units) if you live in one unit
• Certain new construction and renovations (lender overlays apply)
Property must be safe, sound, and sanitary. If repairs are needed to meet VA standards, we’ll strategize how to address them (seller credits, repair escrows, concessions, or price adjustments).

Documents Checklist (Save Time)
• COE (we can retrieve it for you)
• Government ID and DD-214 (if applicable)
• VA disability award letter (to verify compensation)
• Recent bank statements & any additional income docs
• Homeowners insurance quote (later in process)

Upfront Costs & Ways to Minimize Them
• Funding Fee: Waived for disabled veterans receiving compensation
• Earnest Money: Negotiable; counts toward closing costs/down payment (if any)
• Closing Costs: You can often use seller credits and lender credits to offset these
Tried-and-true playbook: In this market, we negotiate targeted credits and timing so your out-of-pocket is controlled without weakening your offer’s competitiveness.

Common Myths—Cleared Up
• “I’m 100% disabled; I don’t have to qualify.”
You still must qualify on income/credit, but your benefits give you a major edge.
• “VA loans are harder for sellers.”
With clean underwriting and a tight offer package, VA is just as strong. Appraisal standards protect you; they’re not deal-killers when managed correctly.
• “I can’t use VA if I already used it before.”
You may have remaining entitlement or can restore it—let’s review your COE.

Step-By-Step: What We’ll Do Together
1. 15-Minute Eligibility Check: review benefits, estimate max purchase.
2. Lender Match & Pre-Approval: Prioritize lenders experienced with gross-up and VA.
3. Offer Strategy: Structure credits, appraisal terms, and timelines that win.
4. Inspection & Appraisal Gameplan: Prevent surprises; fix issues early.
5. Close & File Exemptions: We’ll guide the county tax relief application.

Real Numbers Example (Illustration)
• Target payment (PITI): $2,800/mo
• VA disability pay: $4,000/mo (tax-free) → $5,000/mo qualifying at 25% gross-up
• Other debts: $300/mo
• DTI with gross-up: (2,800 + 300) ÷ 5,000 = 62% → not OK
 Adjust: Lower price, improve rate with points, increase credits, or add documented income
• With a $2,400 PITI and same debts: (2,400 + 300) ÷ 5,000 = 54%
Depending on compensating factors (reserves, strong credit), this can work.
Bottom line: We’ll right-size price, rate, and credits to fit underwriting—not the other way around.

Disclosures & Fine Print 
• Lender gross-up percentages vary (commonly up to 25%). We’ll confirm policy before pre-approval.
• Funding fee waiver applies if you receive VA disability compensation (or qualifying exemption)—we’ll document this in your file.
• Property tax programs are county-administered and can change—eligibility and savings vary.
• VA loans require owner-occupancy and acceptable property condition.

Work With a Veteran-Focused Team
You deserve someone who knows the VA lane cold. I’ll coordinate your lender options, structure your offer, and manage the appraisal and tax-relief steps, start to finish.

Let’s get you set up today.
• Call/Text: 503-997-4169
• Email: troy@nwrealtysource.com