The VA has announced that their compensation payment rates will be increasing for 2023, and by a significant percentage.
Based on the latest cost of living adjustment announcement, the VA will be increasing their compensation benefits for veterans and beneficiaries in 2023 by 8.7%. This is the largest increase in monthly compensation benefit payments for veterans in more than 30 years.
The increase in VA compensation for 2023 applies to:
This rate increase will go into effect as of January 1, 2023. Veterans and other beneficiaries can expect to see an increase starting with their January 2023 payment.
If you should be receiving the increased payment amount but did not see a change in the payments you are receiving, you should contact the VA regional office near you or call Veterans Affairs at 800-827-1000.
This record increase in VA compensation for 2023 will give veterans more buying power when it comes to shopping for a home.
VA benefits are used to calculate income – specifically residual income – for a veteran. An increase in VA compensation payments means that veterans may have more residual income, which can help them meet or exceed residual income requirements associated with VA home loans. This also means they may be able to afford to spend more on a home.
If you’re a veteran gearing up to make a home purchase, you should strongly consider financing your purchase with a VA mortgage. They offer significant benefits to those who qualify, including competitive interest rates, limited closing costs, and no requirement for private mortgage insurance.
You can learn more about the benefits of VA home loans here.
Need help navigating the qualification requirements for VA home loans, as well as ensuring that you satisfy the residual income minimums? We’d be happy to assist.
The Maple Tree Funding team of mortgage professionals consists of a number of Certified Veterans Lending Specialists who are uniquely qualified to help veterans secure VA loans to finance their home purchases. We know the ins and outs of VA home loans and we’d be happy to help you through the process of securing one.