How Does a 100% Disability Rating Affect My Florida Property Taxes and VA Loan?

In Florida, Veterans with a 100% service-connected permanent and total (P&T) disability rating are completely exempt from paying property taxes on their primary residence. Additionally, the VA waives the standard VA Funding Fee, saving you thousands in closing costs and drastically increasing your home purchasing power.

If your pre-approval counts property taxes you’re exempt from, it will understate how much home you can buy. As an independent Florida mortgage broker, AAA Capital Funding knows exactly how to apply your state and federal exemptions upfront so you can maximize your buying power. Our Florida VA loan page covers the rest of the benefit, from entitlement to closing.

The Financial Mechanics of 100% VA Disability

1. Zero Property Taxes

Florida offers a total property tax exemption for honorably discharged Veterans with a 100% service-connected P&T disability. This instantly removes hundreds of dollars from your monthly mortgage payment.

2. The VA Funding Fee Waiver

Normally, the VA charges a funding fee of 2.15% to 3.3% of the loan amount. If you have a service-connected disability rating of 10% or higher, this fee is legally waived, which can save you thousands at closing (on a first-time, zero-down purchase the fee is 2.15% of the loan).

3. Maximum Purchasing Power

Because you aren't paying property taxes or a funding fee, your Debt-to-Income (DTI) ratio is drastically lower than a civilian buyer. This allows you to qualify for a significantly more expensive home on the same income.