There are moments when legislation actually moves the needle—and this is one of them.
A new bill passed by the Alabama Senate is set to make homeownership significantly more accessible for Alabama’s most deserving heroes: 100% permanently disabled veterans.
And frankly? It’s about time.
What Just Changed (And Why It Matters)
Under current Alabama law, veterans with a 100% permanent disability already receive a full exemption from property (ad valorem) taxes on their primary residence.
Sounds great… but here’s the catch:
Lenders still counted those taxes in the buyer’s debt-to-income (DTI) ratio during loan approval.
Translation?
Even though the veteran wouldn’t actually pay those taxes… it could still hurt their ability to qualify for a home loan.
Yeah—make it make sense. Here’s what the new law does:
- Allows eligible disabled veterans to apply for their property tax exemption BEFORE closing
- Ensures those taxes are NOT counted in DTI calculations
- Gives lenders a more accurate picture of the buyer’s true financial situation
Bottom line:
1.) More buying power
2.) Easier loan approval
3.) Less red tape where it never belonged in the first place
Know a Veteran Who Could Benefit?
Share this with them. Seriously.
Because sometimes the difference between “I can’t qualify” and “I got the house”
comes down to one smart change like this.