Q: Does the VA pay off mortgages?
A: Under certain circumstances. Veterans’ Mortgage Life Insurance (VMLI) will help surviving family members of severely disabled Servicemembers or Veterans pay off the home mortgage at the time of death.
To be eligible, the disabled Veteran must have participated in the Specially Adapted Housing (SAH) program to help build, remodel, or purchase the home, be the titled owner of the home, and have a mortgage. Additionally, an application for VMLI must be made before the veteran’s 70th birthday. There is a monthly premium payment cost for VMLI, which is normally deducted from the veteran’s disability benefits.
If all of the qualifications are met and premiums are paid, VMLI will pay up to a maximum of $200,000 directly to the bank or lender who holds the mortgage to pay off the balance. There is no dividend or cash surrender value to VMLI.
For legal advice and representation on Veterans Benefits, contact Jennings Law Offices, LLC, for a consultation.