One of the most frustrating things I see, over and over again, is veterans getting denied for mortgages they absolutely qualify for.

And a huge reason for that?
Lenders and underwriters who don’t understand VA disability income.

If you receive VA disability, I want you to hear this loud and clear:

Yes, VA disability can be used as income to qualify for a mortgage.
And if someone tells you otherwise, they are wrong.

Let’s walk through how this actually works and what you need to know so you don’t get shut down unnecessarily.

Why Veterans Get Denied (When They Shouldn’t)

After nearly two decades in lending, I can tell you this isn’t a rare issue. Veterans across the country are being denied every single day, not because they don’t qualify, but because lenders or underwriters don’t know the guidelines.

Sometimes, VA disability income gets treated like other types of disability income. That’s where things go sideways. VA disability follows different rules, and when those rules aren’t applied correctly, veterans pay the price.

Yes, VA Disability Counts as Income

Let’s start with the most important point.

If a lender tells you they cannot use VA disability income to qualify you for a loan, that is incorrect.

VA disability income can be used to qualify for:

• VA loans

• Conventional loans

• FHA loans

• Jumbo loans

Every loan type in America allows it.

The problem isn’t the guideline; it’s the lack of experience.

VA Disability Is Grossed Up (This Matters a Lot)

Here’s something many lenders miss, and it can dramatically affect how much home you qualify for.

VA disability income is not taxable, which means lenders are allowed to gross it up. In simple terms, that means we increase the income amount for qualifying purposes.

Example:

• $1,000 in VA disability income

• Gets treated like $1,250 in qualifying income

This is one of the most common mistakes I see: veterans being underqualified because the lender didn’t gross up the income. That can be the difference between approval and denial, or between a smaller home and the right one.

What Documentation Is Actually Required

This part causes a lot of unnecessary stress, so let’s simplify it.

In most cases, your Certificate of Eligibility (COE) is all that’s needed to document VA disability income.

That’s it.

You do not need:

• Medical records

• A “continuance letter.”

• Proof your disability will last forever

Your COE already reflects your VA disability.

If you just started receiving benefits and it hasn’t updated yet, a VA award letter showing your benefit amount is perfectly acceptable. In some cases—such as property tax exemptions for 100% disability—additional documentation may be helpful, but it’s separate from qualifying for the loan.

If someone is demanding proof of continuance or medical documentation, they’re applying the wrong rules.

The Bottom Line

Here’s what I want every veteran to remember:

• VA disability is real income

• It can be used on any loan type

• It should be grossed up

• Your COE is usually sufficient documentation

If you’re being told otherwise, it’s not you—it’s the lender.

And if you ever want a second opinion, clarity, or someone who actually understands VA guidelines, my team is always here.

📞 Call or text us at 786-933-2077
We’re happy to help—whether you’re buying now or just planning ahead.