Short answer
Yes. VA disability compensation can count as qualifying income, usually with just your VA award letter or benefit statement. For conventional loans, Fannie Mae requires no minimum history and doesn't require proof the income will continue for VA retirement or long-term disability benefits. Other VA benefits need to be expected to continue for at least three years. GI Bill education benefits don't count, because they're offset by school costs.
What will the lender ask for?
Usually your VA award letter or a benefit statement showing the amount. A bank statement showing the deposits, a tax return or a 1099 can also work in some cases. You need to receive at least one payment by your first mortgage payment date.
Does it help that VA disability pay isn't taxed?
It can. Because VA disability compensation isn't taxable, lenders can often gross it up, meaning they count it as a larger pre-tax equivalent when figuring your debt-to-income ratio. How much depends on the loan program and the lender.
What else does a disability rating change on a VA loan?
Veterans who receive VA compensation for a service-connected disability are generally exempt from the VA funding fee, which can lower your cash to close or loan amount. See the VA loan guide.
What New Hampshire tax credits apply?
Veterans with a total and permanent service-connected disability can get a larger property tax credit in many towns, now up to $5,000 where a town has adopted it. See what changed for NH veterans' tax credits in 2026.
Sources
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.