Purchasing a Home with a VA Loan in Alabama

Alabama has a large number of state benefits for veterans and current military servicemembers. They can help you get better housing, tax breaks, employment and education, low-cost licenses, and much more.

If you see a benefit or program that is available to you, you may be able to apply to it directly, or you can contact the Alabama Department of Veterans Affairs, which helps veterans to apply for benefits. If you need VA loans in Alabama, contact Low VA Rates at any time for help.

Veteran Home Loans

Are you stationed in Alabama because of service in the Air Force, Army, or Coast Guard? If you are, you could purchase a home by one of Alabama's military bases. That way you can enjoy the freedom of owning your own home while still having the convenience of living near base.

Whether you're a servicemember currently stationed in Alabama or a veteran permanently settled in Alabama, you can take advantage of a VA loan to purchase a home.

The VA guarantees part of each VA loan, which means that the private lenders who issue VA loans will get part of their money back if a borrower fails to pay. The lender, in turn, is able to offer unusually affordable mortgages to veterans, with features such as:

• No requirement for a down payment on a home purchase
• Lower interest rates than many other mortgages offer
• No need to pay private mortgage insurance (PMI)
• Easy qualifications, even with poor credit

Veteran Housing Benefits
Most veteran homebuyers won't actually need to borrow the full loan limit in their county. How much you actually get approved for depends on the lender you choose, their rates, terms, and other conditions.

If you want to get the best veteran loan rates, you will need to compare offers from multiple lenders. Also, you will want to make sure that whoever you choose has plenty of experience with VA loans, so they know the ins and outs of the process.

Alabama State Veterans Homes

Alabama has four state veterans homes that house and care for aging and disabled veterans. These facilities provide state-of-the-art care and equipment for an affordable monthly fee. To see the services each home provides, visit their individual pages by clicking on the links below:

• The William F. Green State Veterans Home in Bay Minette
• The Bill Nichols State Veterans Home in Alexander City
• The Floyd E. "Tut" Fann State Veterans Home in Huntsville
• The Col. Robert L Howard State Veterans Home in Pell City

In order to qualify to receive care at one of the homes, you must meet the eligibility requirements. As a basic guideline, these include the VA's qualifications for assisted living or skilled nursing care, as well as the following:

• Honorable discharge from the military
• At least 90 days of military service, with at least one day during wartime
• Residency in Alabama during the past 12 months
• Meet the VA's qualifications for assisted living or skilled nursing care
• Staying within Alabama's immigration laws
• Passing a background check
• A medical examination that reports you do NOT have:
  • Major needs the home isn't able to serve
  • Behaviors that could endanger others
  • Mental illness or impairment greater than your medical condition

In addition, you must also pass a background check. If you meet all of these requirements, you can apply to live at any of these homes by filling out and submitting the Alabama State Veterans Homes Application form.

*Veterans without wartime service can still apply, as you may get in if a space opens up.

Housing Assistance for Homeless Veterans

If you're a veteran and are homeless or in danger of becoming homeless in Alabama, there's help available. The Alabama Department of Veterans Affairs keeps a large list of resources on their website, including phone numbers to call.

Other resources you can use include:

• Alabama Food Banks – There are several food banks in Alabama, and there may be one near you.
• Three Hots and a Cot – The mission of this non-profit is to help homeless veterans get off the streets and become independent in civilian life. Call them at (205) 520-2356.
• National Call Center for Homeless Veterans – If you need help right now, please call the VA's number for homeless veterans: 877-424-3838.
• The Alabama Rural Coalition for the Homeless – This organization serves homeless people in all of Alabama's counties. You can call them for help 24 hours a day at 855-810-2724.
• Mid-Alabama Coalition for the Homeless – Contact this coalition at (334) 261-6182 to get assistance applying for HUD funding for a home.

Property Tax Exemption for Homes of Totally Disabled Persons Over Age 65

While not exclusive to veterans, Alabama offers a full state property tax exemption if:

• You are completely and permanently disabled
• You are 65 or older
• Your net income is $12,000 per year or less
• Your home is a single-family structure you live in as your main residence during the tax year

If you get annuity or pension payments from the military, a company, or a government agency because of your disability, Alabama should give you a certificate of total and permanent disability.

Homes of Veterans and Widows Acquired Under Public Law 702

If you are a veteran or the unremarried surviving spouse of one, and you bought your house under Public Law 702, which provides grants for specially adapted housing, you won't be required to pay property taxes on that house. However, you must still own it and live in it to qualify for this benefit.

Veteran Education & Employment Benefits

Education Benefits

Alabama offers a variety of programs to help support veterans, servicemembers, and their families who are working towards furthering their education. These programs include scholarships, tuition waivers, and more.

State Approving Agency

Are you eligible to use education benefits in Alabama? Alabama's State Approving Agency (SAA) is responsible for ensuring the quality of the education programs you might attend.

To see a list of all the schools and training locations at which the SAA has approved programs, you can use the VA's Web Enabled Approval Management System (WEAMS) using these steps:

1. Click on "AL" (for Alabama) on the US map on the WEAMS site
2. In the resulting list of education providers, click on any educational institution's name for more information about their programs
3. Use the contact information you find to call that location for even more details or to enroll

Operation Recognition: High School Diplomas for Veterans

Was your high school education interrupted by war? Were you unable to graduate because of your service? Alabama can award you a high school diploma if you meet these qualifications:

• Honorable discharge
• Military service during World War II, Korea, or Vietnam
• Residence in Alabama before joining the military
• Interruption of high school education and graduation because of service

If you're interested in receiving a diploma, either for yourself or on behalf of a qualified veteran family member, contact the office of the principal of your high school or the Superintendent of Education of your county.

Academic Credit for Military Education, Training, and Experience

If you are a veteran, you can earn credit at Alabama's public institutions, community colleges, and technical schools based on your military experience, training, and education. In order to qualify, your experience must meet their standards.

To find out more, you can contact the registrar of the school you are attending or wish to attend. You can also contact their veterans affairs representative.

Tuition Waiver for Purple Heart Medal Recipients

You may qualify for FREE education at schools in Alabama if you're a Purple Heart recipient. If you're eligible, you can use this benefit at a public higher learning institution, a community college, a junior college, or a two- or four-year technical college. The qualifications include:

• Being enrolled in an undergraduate program working toward a degree or certificate as a full-time, part-time, or summer school student
• Being an Alabama resident
• Being an Alabama resident at the time of the event for which you were awarded the Purple Heart
• Meeting and maintaining academic and other requirements to be remain enrolled at your school
• Showing your DD-214 form as evidence of the Purple Heart

You can contact your school to find out if they participate in this benefit. This tuition waiver is to be used after you've used up your other education benefits, such as the GI Bill.

Alabama GI Dependents Scholarship Program

In Alabama, you can get an education scholarship for their dependents, including your spouse, child, or stepchild. This scholarship can be used for up to 10 semesters at Alabama higher learning institutions or technical colleges.

However, for spouses and unremarried widows or widowers, than can only receive 10 semesters if the veteran is or was rated 100% completely and permanently disabled. They can get 6 semesters if the veteran was rated 40–90% disabled.

In order for their dependents to be eligible, the veteran must meet certain service, disability, and residency requirements. Then, if the veteran is eligible, the student must also meet a separate set of eligibility standards. Both sets of requirements are available online.

Employment Benefits

As a current or former servicemember, you have access to a variety of employment benefits in Alabama. These include state employment benefits for hiring preference and retirement, streamlined professional licensure, and more.

Job Status and Reemployment Rights

Do you work for the state, county, or city? If you have a government job, and you leave it to serve in the military during a declared national emergency, your job status will be preserved while you're away.

Even if you're not part of the classified service at your place of employment, you'll still have the same reemployment rights as people in the classified service.

Membership in State Employees' or Teachers' Retirement System

If you're a state employee or teacher, don't worry about your retirement account if you leave your position to go into active military service. You'll still have your retirement benefit rights after you're discharged and come back to your civilian work, as long as you left your contributions in the retirement system.

In addition, even if you don't have military retirement benefits, you can still contribute to your retirement account by claiming up to four years of the time you were in the military. You'll need to pay 4% of the average salary of a state employee for each year you're claiming from your military service toward retirement, plus 8% compound interest since the last date of the military service you're claiming.

After your discharge, the time limit within which you should make your contributions is the same amount of time that you were in the military. You should also contribute before you turn 60 (or 56 for a police officer).

Unemployment Compensation

If you're a veteran and are unemployed, you may qualify for unemployment compensation.

To start the process, you should get in touch with your nearest State Unemployment Compensation Claims Office to find out if you're eligible. You might not qualify if you get disability or pension payments from the US government.

In addition, Alabama's state law does not disqualify the spouse of an active-duty servicemember from receiving unemployment compensation benefits if they had to leave their job because of PCS orders.

Occupational Licensure for Military Service

When you enter civilian life as a veteran, you may need a license or certification for your occupation. Licensing or certification boards can use your military service, education, or training as part of your qualifications toward that license or certification.

If you already had a license or certification during your deployment and were in good standing with the military and with the licensing body, you should still be considered in good standing at least through December 31 of the first year after your deployment ends.

Also, while you're deployed, your license or certificate can be renewed without paying fees or dues. In addition, your continuing education credits, as well as other renewal requirements, may also be waived under certain circumstances.

State Employment Preference

If you're a veteran with an honorable discharge and need to take an examination for a state job, you should receive an employment preference.

All honorably discharged veterans will receive at least 5 additional points, while disabled veterans may receive 10. Additionally, spouses of certain disabled veterans may also receive 10 extra points on their scores, as will surviving spouses of deceased veterans.

Another aspect of Alabama's employment preference is that your name will be placed ahead of any nonveterans, if your rankings are the same.