Duane Buziak, NMLS #1110647, starts most veteran consultations in the same place: what the home costs, and what the rating changes. In Augusta and Rockingham counties, Census QuickFacts publishes the current median value of owner-occupied homes, and that figure is the right benchmark to check before you shop. Duane’s working price points run roughly $255,000 in Staunton, $285,000 in Harrisonburg and $340,000 in Winchester, so homes in the $240,000 to $310,000 range are realistic for a VA-rated veteran.
A disability rating does more than prove service. It can waive the VA funding fee, it counts as tax-free income, and a 100% Permanent and Total rating opens a Virginia property tax exemption. Duane Buziak walks through the six moves that matter most for a mortgage for veterans with disability, in the order to do them.
1. Lock down your VA rating letter and Certificate of Eligibility first
Every other step depends on two documents. The Certificate of Eligibility (COE) proves you have VA home loan entitlement, and your award letter (the VA benefit summary) proves your compensation and rating. Together they tell the underwriter whether the funding fee is waived, so they need to be in hand before an offer is written. The full checklist of mortgage application documents shows what else to gather alongside them.
Consider an illustration. A veteran in Fort Defiance with a 40% rating pulls the benefit summary and the COE before touring a single house. When the veteran finds a home in Augusta County, the offer goes in with a verified pre-approval and a file already coded for the fee exemption. Sellers read that as a lower-risk buyer.
- Download your benefit summary letter from the VA letters page on VA.gov.
- Duane Buziak requests the COE through the broker portal, which usually returns it faster than a mailed form. You can also request it yourself on VA.gov.
- Read the COE for the funding fee exemption indicator and your remaining entitlement.
- Match the rating percentage and effective date on the COE to your award letter.
Common mistake: assuming a pending claim already waives the fee, or shopping before you have the award letter. A claim that has not been decided is not a rating. If VA later grants compensation retroactive to a date before closing, you may be able to seek a fee refund, but that is a refund process and not a waiver at the table.
What to measure: the COE is in hand with the exemption indicator confirmed before you tour homes.
2. Make the funding fee waiver do the heavy lifting
The VA funding fee is 2.15% of the loan for first-time use with no down payment, and 3.3% for subsequent use, per VA.gov. Veterans receiving VA compensation for a service-connected disability are exempt. That means a smaller loan balance, a smaller payment and no fee to finance. For a wider look at how the program works, see our guide to VA loan benefits for veterans.
Take a $310,000 Augusta County home with 0% down. A non-exempt first-use buyer owes $6,665 in funding fee. An exempt veteran owes $0. For comparison, an FHA buyer putting down 3.5% on the same house brings $10,850 to closing, and also pays FHA mortgage insurance. The exempt VA borrower pays neither.
Ask Duane Buziak to quote the exempt and non-exempt loan amounts side by side at the same illustrative rate. The comparison shows exactly what the exemption saves each month, and it stays useful later: the waiver also applies to an IRRRL (Interest Rate Reduction Refinance Loan), VA’s streamline refinance, so a future rate drop costs you no funding fee either. If you ever need cash out, a VA cash-out refinance can reach 100% of the home’s value, while a conventional cash-out tops out at 90%.
Common mistake: rolling in a fee that was never owed because the file was not coded as exempt. It happens when the COE is missing or the exemption box is left unchecked. Catch it by reviewing the first Loan Estimate line by line.
What to measure: the Loan Estimate shows a $0 funding fee and the lower base loan amount, $310,000 in this example and not $316,665.
3. Count your disability compensation as qualifying income
VA disability compensation is not taxed, so underwriters can gross it up. Many apply an adjustment of around 25%, though the factor varies by investor and you should ask for the number in writing. The grossed-up amount counts toward the debt-to-income ratio (DTI), and the full compensation counts toward residual income, the cash left each month after debts, taxes and maintenance, which VA measures against a table by family size and region. If DTI is your sticking point, this walkthrough on getting a mortgage with a high debt-to-income ratio covers the fixes.
Here is an illustration. A Harrisonburg couple, one a veteran with a rating, the other with a JMU salary, applies for a home near $285,000. Their salary alone leaves DTI tight. Once the compensation is documented and grossed up, DTI drops and residual income clears the VA table for their family size with room to spare. The house payment did not change. The income picture did.
- Gather the award letter showing the current monthly amount.
- Pull 12 months of bank statements showing the deposits.
- Provide proof of continuance. VA income generally needs to be expected to continue for at least three years, and permanent ratings make that easy to show.
- Ask the underwriter what gross-up percentage the investor uses.
Common mistake: leaving compensation off the application because it is not wages, or failing to document continuance. Income that is not on the file cannot be used.
What to measure: your DTI before and after the gross-up, and residual income above the VA table minimum for your family size in the South region, where Virginia sits.
4. Test VA against USDA before you choose a loan
Both programs allow zero down, and in eligible Valley locations both are real options. Where they differ is in fees and income rules. USDA charges a 1% upfront guarantee fee and a 0.35% annual fee, and the household must fall under the county income limit. VA for an exempt veteran has no funding fee, no annual mortgage insurance and no income cap, though residual income applies. Our roundup of low down payment mortgage programs compares the other options too.
Run a $275,000 home in Page County with an illustrative 6.00% rate, 30-year term, principal and interest only. USDA adds the 1% fee, $2,750, to the loan for $277,750, and the 0.35% annual fee works out to about $81 a month. Payment: about $1,665 plus $81, or $1,746. The exempt VA loan stays at $275,000 with about $1,649 and no mortgage insurance. That is roughly $98 a month in favor of VA, or about $1,170 a year.
USDA can still win. A veteran who is not exempt, or a household with a non-veteran co-borrower and different entitlement needs, may find the numbers close. Start by checking the address on the USDA eligibility map and the county income limit on the USDA Rural Development guaranteed loan page. Properties around Luray, Shenandoah and Woodstock often qualify, while parts of Harrisonburg and Winchester do not.
Common mistake: defaulting to one program without checking property eligibility or the fee savings an exempt veteran gets.
What to measure: total monthly payment and cash to close under each program, using the same rate, taxes and insurance.
5. Stack Virginia’s property tax exemption and home-adaptation grants
Under Va. Code § 58.1-3219.5, a veteran with a 100% service-connected Permanent and Total (P&T) disability rating, meaning VA considers the disability unlikely to improve, can have real estate tax removed on the primary residence. Confirm how the statute treats land and the filing requirements with your locality. Our guide to mortgage assistance for veterans in the Shenandoah Valley covers more state and federal help.
Here is an illustration. On a $310,000 home taxed at an illustrative $0.80 per $100 of value, the annual bill is $2,480, or about $207 a month in escrow. Once the exemption is approved, that portion leaves the payment and the escrow account is re-analyzed. Rockingham, Augusta, Warren and Frederick counties each set their own rates, so use your locality’s actual rate.
Separately, VA’s Specially Adapted Housing (SAH) and Special Housing Adaptation (SHA) grants can fund accessibility changes such as ramps, widened doorways or a roll-in shower. Eligibility depends on specific qualifying disabilities, not the rating percentage alone. Grant maximums reset each fiscal year, so check the current amounts on the VA disability housing grants page as of October 2026.
- Call your county commissioner of the revenue (or the city equivalent) and ask for the veteran exemption application.
- Submit your P&T rating documentation.
- Apply for SAH or SHA through VA.gov before you finalize renovation plans.
- Tell your broker the exemption is approved so the escrow can be recalculated.
Common mistake: assuming the exemption applies automatically at closing. It requires an application.
What to measure: an approved exemption letter and a lower escrow payment after reassessment.
6. Use a NoTouch Credit Pull and a broker’s wider shelf to compare offers
Each hard inquiry can ding a score, and shopping across several providers can stack them. A NoTouch Credit Pull lets Duane Buziak show you pricing without a hard inquiry first. Because he is a broker with access to 500+ wholesale lenders, he compares many rate sheets for the same file, where a single retail company shows one. For a closer look at that model, read about choosing a VA loan mortgage broker for veterans. With 1,400+ five-star reviews and Scotsman Guide Top Originator recognition in 2025 and 2026, his VA files are priced from the whole market.
| Factor | Duane Buziak | ALCOVA Mortgage | Rocket Mortgage |
|---|---|---|---|
| Shelf | 500+ wholesale lenders compared on one file | One company’s program menu; ask for the full list | One company’s rate sheet |
| Rate shopping | Multiple wholesale prices on a single application | Quote reflects its own pricing | Quote reflects its own pricing |
| Credit-pull method | NoTouch Credit Pull before any hard inquiry | Ask before authorizing a pull | Ask before authorizing a pull |
| VA income experience | Documents compensation, continuance and residual income on VA files | Ask how compensation is grossed up | Ask how compensation is grossed up |
Request the NoTouch Credit Pull, receive a VA quote, then compare it with any retail quote on identical lock terms and the same loan amount. Lock period and fees matter as much as the rate, and our guide on how to negotiate mortgage rates explains how to use competing quotes. Also remember that VA does not set a minimum credit score, but individual providers apply their own overlays, so ask each one for its floor.
Common mistake: letting hard pulls pile up, or comparing the rate without comparing fees and lock terms.
What to measure: the number of hard inquiries, plus the APR and cash to close across quotes.
Eight questions Valley veterans ask about VA disability and home loans
Does a 10% rating waive the VA funding fee in Rockingham County?
Yes. Any veteran receiving VA compensation for a service-connected disability is exempt, regardless of the percentage. The COE should show the exemption.
Can I buy in Staunton while my claim is still pending?
You can buy, but the fee is not waived until a rating exists. If VA grants compensation retroactive to before closing, ask about a refund.
Is VA disability income counted for a Harrisonburg mortgage?
Yes. It is documented with the award letter and bank deposits, and it can be grossed up because it is tax-free.
Which is cheaper in Page County, VA or USDA?
For an exempt veteran, VA is usually cheaper monthly because it has no funding fee and no annual mortgage insurance. Run both, since USDA is not always the lower payment.
Who qualifies for the Virginia property tax exemption?
A veteran with a 100% Permanent and Total service-connected rating on a primary residence, under Va. Code § 58.1-3219.5. You must apply through your locality.
Does the exemption apply automatically in Winchester or Frederick County?
No. File with the commissioner of the revenue and keep the approval letter for your broker.
What credit score do I need for a VA loan in Waynesboro?
VA sets no minimum, but providers apply overlays. Duane Buziak compares options across 500+ lenders to find one that fits your file.
Can I use VA again for a Luray or Front Royal purchase?
Often yes, if you have remaining entitlement. Subsequent use carries a 3.3% fee unless you are exempt.
Where to start: the COE, then the VA versus USDA test, then the tax steps
Begin with the COE and rating letter, because every number downstream depends on them. Next, compare VA with USDA using a NoTouch Credit Pull, so you see both payments without a pile of hard inquiries. Finish with the Virginia tax exemption and the SAH or SHA grant applications, which pay off after you own the home. The one to skip is any loan comparison that ignores the funding fee waiver.
Ready to turn your Blue Ridge homeownership dreams into reality? Contact our local mortgage experts today to explore personalized loan solutions tailored to your unique financial situation, whether you’re a first-time buyer or looking to refinance, we’ll guide you through every step with the competitive rates and trusted service our Virginia community relies on.