Disabled veterans
VA home loan benefits for disabled veterans in Chicago
Short answer
Veterans who receive VA disability compensation get three stacked benefits when buying in Chicago. They pay no VA funding fee, saving 2.15% of the loan on a typical purchase. Cook County takes $2,500 to $250,000 off the home’s equalized assessed value depending on the rating (Cook County Assessor, tax year 2025). Veterans with certain severe disabilities can also get a VA housing grant of up to $126,526 (fiscal 2026 maximum, the latest VA has posted) to buy, build or adapt a home.
The benefits, side by side
| Benefit | Who qualifies | Value |
|---|---|---|
| VA funding fee exemption | Receiving, or eligible for, VA disability compensation | 0% instead of 2.15% (first use, under 5% down) |
| Funding fee refund | Rating awarded later, effective before your closing date | Fee you paid, refunded |
| Cook County exemption, 30% to 49% | Service-connected rating | $2,500 off EAV |
| Cook County exemption, 50% to 69% | Service-connected rating | $5,000 off EAV |
| Cook County exemption, 70% and up | Service-connected rating | Up to $250,000 off EAV |
| Specially adapted housing exemption | Home bought or adapted with a VA housing grant | Up to $100,000 off EAV |
| VA SAH grant (FY2026) | Qualifying severe disabilities, such as loss of use of both legs | Up to $126,526 |
| VA SHA grant (FY2026) | Qualifying disabilities, such as loss of use of both hands | Up to $25,350 |
The adapted housing exemption and the veterans with disabilities exemption cannot be combined. Both can be combined with the general homestead exemption.
The Cook County exemption amounts are the Assessor’s figures for tax year 2025 and apply only to a primary residence in Cook County. The veterans with disabilities exemption covers up to $250,000 of equalized assessed value, needs a VA-certified service-connected rating of at least 30%, and cannot be combined with the Homestead Exemption for Persons with Disabilities or the Returning Veterans Homeowner Exemption. On a two-flat or other small multi-unit building, only the unit you live in qualifies. Most applicants file every year; the Assessor’s exemption page explains renewal.
What the funding fee exemption saves
| Loan amount | Fee at 2.15% | Fee if exempt |
|---|---|---|
| $300,000 | $6,450 | $0 |
| $400,000 | $8,600 | $0 |
| $550,000 | $11,825 | $0 |
Check that your Certificate of Eligibility shows the exemption before closing. If it does not, ask your lender to request an updated COE.
VA housing grants
Specially Adapted Housing (SAH) and Special Housing Adaptation (SHA) grants help veterans with certain service-connected disabilities buy, build or change a home for independent living. Grant money can be used up to six times over your lifetime. If you live temporarily in a family member’s home, a Temporary Residence Adaptation grant of up to $50,961 (SAH-eligible) or $9,100 (SHA-eligible) may apply.
These are VA’s fiscal 2026 maximums (VA.gov grants page, updated Nov. 18, 2025). VA sets them by federal fiscal year, which starts Oct. 1; as of Nov. 1, 2026, VA had not posted fiscal 2027 amounts. This page will be updated when it does.
How disability pay helps you qualify
VA disability compensation is tax-free, so lenders can count it at a higher, grossed-up amount when they figure your debt-to-income ratio. It also counts toward VA residual income. How lenders qualify VA borrowers.
Common questions
Do disabled veterans pay the VA funding fee?
No. Veterans who receive, or are eligible for, VA disability compensation are exempt from the funding fee.
How much property tax do disabled veterans pay in Cook County?
It depends on the rating. For tax year 2025, the Cook County Assessor’s veterans with disabilities exemption takes $2,500 off equalized assessed value at 30% to 49%, $5,000 off at 50% to 69%, and up to $250,000 off at 70% or higher, which erases the bill on most homes.
How much is the VA SAH grant in 2026?
Up to $126,526 for fiscal year 2026. The SHA grant is up to $25,350. As of Nov. 1, 2026, VA had not posted fiscal 2027 amounts.
Sources
What will your VA funding fee be?
Enter a price and down payment to see the 2026 fee, or check whether you are exempt.
An independent guide. Not affiliated with or endorsed by the U.S. Department of Veterans Affairs, and not a lender. General information, not legal, tax or financial advice.