Question:
Is there any mortgage insurance that a 100 percent P&T disable veteran can apply for other than VMLI? I do not qualify for a SHA or SAH grant. The only grant I did qualify for was HISA. I am just trying to get some mortgage insurance.
Jim's Reply:
VMLI is mortgage insurance...more or less a short term life policy that guarantees the lender that the balance of the mortgage will be paid directly to the lender if you die. The advantage of VMLI over other insurance offerings is that you will pay a standard rate with no penalty for your disabilities. That may represent a significant discount and cost savings to the severely disabled veteran.
https://www.benefits.va.gov/INSURANCE/forms/VMLI-brochure-03-2012.pdf
The eligibility requirements are pretty clear, you must first have an SHA or SAH grant to be eligible for VMLI. Veterans who are eligible for a VA loan usually don't have to pay PMI (Private Mortgage Insurance) so I'm unsure what your overall eligibility for any benefits will be?
If you're contemplating any loan other than one using your VA certificate and you aren't eligible for VMLI, you may have to talk with your lender about purchasing PMI and having that expense folded into the mortgage...if that's allowed in the setting you're working in.