Thankfully, VA loans don’t have private mortgage insurance or mortgage insurance premiums that add to your monthly mortgage payment. It does have an insurance program that is linked to its home loans, called Veterans Mortgage Life Insurance.
VMLI is an option for VA borrowers with
service-connected disabilities who want to free their loved ones of mortgage obligation when they pass on.
Find out if you are eligible for this type of insurance from VA.
Talk to a lender today.
Veterans Mortgage Life Insurance: Eligibility and Enrollment
VMLI is applicable to servicemembers and veterans who sustained severe disabilities in connection with their military service. The eligibility for such insurance further requires that:
- You received a grant under the Specially Adapted Housing program, which generally allows you to adapt your home, remodel or build it according to your needs.
- You take a title to the home.
- You have a mortgage that you are obligated to pay back.
To take out this VMLI, you must apply before you turn 70 years old. This financial protection can be automatic upon approval of your SAH grant, provided that you have returned a completely filled-out Form 29-8636 or Veterans Mortgage Life Insurance Statement.
Premiums and Costs of Veterans Mortgage Life Insurance
A Veterans Mortgage Life Insurance provides financial protection by covering the outstanding mortgage balance of
eligible veterans upon their death.
The maximum coverage amount is $200,000, with the exact amount payable at the time of a veteran’s death dependent on his/her mortgage payments and excludes any delinquent amounts.
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Say, you will pay your VMLI premiums via deduction from your
monthly VA disability compensation. If you are not receiving any cash compensation, this payment shall be made directly to the VA.
Your premiums are calculated based on on your outstanding mortgage balance at that time you took the insurance, the number of years needed to pay back the loan, and your age.
You can take out a VMLI with respect to a new or existing mortgage, a refinance or second mortgage. This type of life insurance does not cover reverse mortgages and home equity lines of credit.
When you die, the VMLI proceeds will go to your mortgage lender in order to pay off your outstanding mortgage balance. The coverage will automatically terminate upon payoff of the existing mortgage.
Talk to a lender today.