Are you a veteran looking to make the most of your homebuying budget this year? Good news: By combining grants with a VA loan, you can unlock powerful savings on everything from the down payment to closing costs—and even special home modifications.
While VA loans already stand out with no down payment and no private mortgage insurance (PMI), adding a grant can further reduce or eliminate out-of-pocket expenses.
Let’s walk through the key steps to combine these benefits, highlight common grants available to veterans, and give you real-world examples of how fellow service members have maximized their savings.
Whether you’re moving to a small-town fixer-upper in Texas or eyeing a cozy bungalow in California, you can stretch your budget and keep more money in your pocket. Let’s dive in!
In this Article
Why Combine Grants with VA Loans?
Combining grants with your VA loan can help you save thousands of dollars on closing costs, home improvements, and more—on top of the VA loan’s no-down-payment advantage.
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- Zero Down + Extra Funds: VA loans require no down payment. When you add grants, you gain extra funds to cover closing costs, renovations, or accessibility upgrades.
- Minimize Out-of-Pocket Costs: Grants, unlike loans, typically don’t need to be repaid. This means real, long-term savings.
- Higher Level of Accessibility: Some grants, like the VA’s Specially Adapted Housing (SAH), are designed to help disabled veterans modify their homes for better mobility.
Example: A veteran in Texas combined a $10,000 state grant with a $300,000 VA loan. The grant paid for both the closing costs and a wheelchair ramp—double savings on top of the VA loan’s zero down payment.
Step 1: Understand Your VA Loan Basics
To use grants effectively, first learn how VA loans work—including eligibility requirements, funding fees, and loan limits.
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- Eligibility: You generally qualify if you’ve served on active duty or in the National Guard/Reserve. You’ll need a Certificate of Eligibility (COE) from the VA to prove this status.
- Credit & Income: While credit score requirements vary by lender, many prefer a score of 620 or higher. You’ll also need a reasonable debt-to-income ratio (usually under 41%).
- Loan Limits: In 2025, the standard VA loan limit is $806,500 in most counties, and up to $1,209,750 in high-cost areas. Check VA.gov for current loan limit information in your region.
- VA Funding Fee: Typically ranges from 1.25% to 3.3%. You can roll this into your loan, but using a grant to cover it could reduce your monthly payment.
Tip: Check out our VA Loan Guide for a step-by-step how to on the VA loan process, including tips on getting your COE and comparing lenders.
Step 2: Identify Eligible Grants for Veterans
Look for grants that fit your specific needs—some focus on accessibility, while others help with closing costs.
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In 2025, popular grant programs for veterans include:
Specially Adapted Housing (SAH) Grant
- Amount: Up to $117,014.
- Purpose: Major home modifications (e.g., ramps, wider doorways) for veterans with certain disabilities.
Special Housing Adaptation (SHA) Grant
- Amount: Up to $23,444.
- Purpose: Smaller-scale adaptations like bathroom modifications or specialized fixtures.
State Programs (e.g., Texas Veterans Land Board)
- Amount: $5,000–$10,000.
- Purpose: Often covers down payments or closing costs.
- Check your state’s Department of Veterans Affairs or local housing agency for similar programs.
HUD-VASH Program
- Purpose: Primarily rental assistance for homeless veterans, but can free up savings for transitioning to homeownership down the road.
Real Example: A disabled veteran in Texas used a $50,000 SAH grant to install a wheelchair ramp, modify the bathroom, and widen hallways—making the entire home more accessible.
Step 3: Check Grant and VA Loan Compatibility
Not every grant can be used for every purpose, so confirm the rules before you apply.
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- Gift Funds Allowed: VA loan guidelines permit gift funds to cover closing costs or the funding fee. Grants are typically considered gift funds, meaning they don’t have to be repaid.
- Scope of Funding: Certain grants, like SAH and SHA, are meant solely for home modifications—not for the home’s purchase price.
- Lender Requirements: Some lenders need documentation proving the grant is truly non-repayable. Always clarify the details with your loan officer.
Tip: Unsure if a grant is compatible with your VA loan? Reach out to your regional VA loan center at 877-827-3702 or talk to your lender for official guidance.
Step 4: Apply for Grants Strategically
Start grant applications early—often at the same time or just before you begin the VA loan process.
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- Gather Documentation: You’ll need your COE, DD-214 (discharge papers), proof of income, and possibly medical documentation if it’s a disability-related grant.
- Monitor Deadlines: Some grants, such as the SAH/SHA programs, have specific application windows and eligibility processes through VA.gov. State grants may also have quarterly or yearly funding cycles.
- Coordinate with Your Lender: Sharing grant approval information early can help you get more favorable loan terms or adjust your funding fee approach.
Real Example: One veteran in Texas first applied for a $5,000 closing cost grant from the Texas Veterans Land Board (VLB). Once approved, he notified his lender, who applied the funds at closing—instantly lowering his out-of-pocket costs.
Step 5: Use Grants to Boost Savings
Decide how you’ll spend the grant—paying off closing costs, funding repairs, or buying down your interest rate.
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- Close With Less Cash: Apply grant money to typical closing costs like appraisals, title fees, or the VA funding fee.
- Finance Repairs or Upgrades: Especially helpful for older homes or for making specific disability accommodations.
- Buy Down Your Interest Rate: Use the grant to pay for discount points, potentially lowering your monthly mortgage payment over the life of the loan.
Example: A Texas veteran used a $10,000 grant to cover all closing costs on a $400,000 home. By combining that with the VA loan’s zero-down feature, she walked away from closing without paying a dime out of pocket.
Comparing Grants and VA Loan Benefits
Grants are free money you don’t repay, while VA loans provide low-interest financing and require no down payment. Combine them for the best of both worlds.
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| Feature | Grants | VA Loans |
|---|---|---|
| Cost | Free—no repayment required | Must be repaid with interest |
| Amount | $5,000–$117,014 | Up to $806,500+ (depending on county) |
| Use | Closing costs, modifications | Home purchase or refinance |
| Eligibility | Disability or need-based | Service-based (COE required) |
Key Insight: Because grants cover areas a VA loan doesn’t (like specialized home modifications), using them together can significantly reduce your total homeownership costs.
Real-World Examples of Combining Grants and VA Loans
Disabled Veteran in California
- Combo: $117,014 SAH Grant + $500,000 VA Loan
- Result: Purchased a wheelchair-friendly home with no down payment. The grant covered renovations such as widened doors and ramps.
Texas Veteran with a Family
- Combo: $10,000 State Grant (VLB) + $350,000 VA Loan
- Result: Used the grant to pay closing costs, saving $8,000 upfront and leaving extra funds for moving expenses.
Retired Veteran in Florida
- Combo: $23,444 SHA Grant + $300,000 VA Loan
- Result: Paid for door modifications and bathroom upgrades. Thanks to the grant, the veteran paid zero out of pocket at closing.
FAQs About Combining Grants with VA Loans
Can you combine grants with a VA loan for extra savings?
Yes. Grants like the SAH or state-level grants can cover closing costs or home modifications, enhancing the VA loan’s existing benefits.
Which grants can be used with a VA loan in 2025?
Common options include:
- Specially Adapted Housing (SAH) Grant ($117,014)
- Special Housing Adaptation (SHA) Grant ($23,444)
- Various state programs (e.g., Texas VLB $5,000–$10,000)
Check your local or state veteran resources for more options.
How do I apply for grants to use with a VA loan?
Action Steps:
- Obtain your COE from VA.gov or your lender.
- Apply for grants through official channels (e.g., SAH/SHA at VA.gov, state websites).
- Coordinate with your lender to align grant approval timing with your loan closing.
Do grants affect my VA loan eligibility?
No. Grants are considered gift funds and don’t affect your VA entitlement. Lenders simply need proof that the funds do not need to be repaid.
Can grants lower my VA loan funding fee?
Indirectly, yes. If you use a grant for closing costs, you can effectively reduce or eliminate the cost of the funding fee out of pocket.
What’s the maximum savings from combining grants and VA loans?
Depending on the size of the grant (up to $117,014 for SAH), you could save tens of thousands of dollars in modifications, closing costs, or reduced loan principal.
Are there state-specific grants for VA loans?
Yes. For example, the Texas Veterans Land Board offers $5,000–$10,000. California’s CalVet program offers various assistance options. Search “State Name + Veterans Housing Grants” online or contact your state veterans affairs office.
How long does it take to combine grants and VA loans?
Timeline:
- Grants: 30–60 days (varies by program)
- VA Loan: 30–45 days
Start early and apply for grants alongside (or even before) your VA loan application.
Savings Potential
Below is a quick snapshot of how combining grants with a VA loan can stack up:
| Home Price | VA Loan Savings<br>(No Down Payment) | Grant Amount | Total Savings |
|---|---|---|---|
| $300,000 | $60,000 (20% saved) | $10,000 (State Grant) | $70,000 |
| $400,000 | $80,000 | $23,444 (SHA) | $103,444 |
| $500,000 | $100,000 | $117,014 (SAH) | $217,014 |
Note: “VA Loan Savings” refers to the typical 20% down payment you would avoid with a conventional loan. Actual amounts may vary based on local market conditions and lender requirements.
Summary and Key Takeaways
- Combine and Conquer: VA loans already offer zero down and no PMI. Adding grants can cover closing costs, fund accessibility upgrades, or even reduce your monthly payments.
- Research Is Key: Identify the grants that fit your situation and confirm that your lender accepts them.
- Apply Early: Start grant applications before or alongside your VA loan to streamline closing and avoid last-minute surprises.
- Maximize Your Benefits: Whether it’s covering the VA funding fee, making home modifications, or slashing closing costs, grants offer a valuable boost to your homeownership journey.
Next Steps:
- Visit our VA Loan Resource Center for more Veteran tips.
- Check the official VA website for current information on housing grants.
- Contact your state veterans affairs office for local grants and assistance programs.
Remember, homeownership for veterans is more attainable than ever. By leveraging both a VA loan and the right grants, you can minimize out-of-pocket costs and start building equity in a place you’ll truly call home. Read to. get started? Start today by filling out our short form to speak with a VA lender in our network.
Disclaimer: Always consult with a qualified lender or financial advisor for specific guidance. The information in this article is current as of February 25, 2025, but programs and eligibility rules may change.
Levi Rodgers is a nationally recognized real estate expert and U.S. Army Green Beret (Ret.) who writes about homeownership, VA loans, and Veteran-focused real estate strategies. After his military service, Levi built one of the top-performing real estate teams in the country, helping thousands of military families navigate the path to homeownership. His writing draws from firsthand experience, leadership, and a deep commitment to serving those who serve. Levi simplifies complex housing topics and offers real-world guidance on credit, financing, and smart real estate moves — especially for Veterans and first-time buyers.
