Three Tests, Three Decision-Makers, and Almost No Overlap Between Them
Program and regulatory figures verified October 10, 2026. Details change; confirm your scenario with us.
People conflate these constantly, and the conflation is expensive in both directions: some veterans claim nothing, others budget on something they will not get.
★★ Side by side
| VA loan | ★ POW exemption | Property tax credit | |
|---|---|---|---|
| Who decides | the VA, then the lender | Missouri taxing authorities | the Department of Revenue |
| Disability needed | ★★ none | total service-connected | 100% from service |
| ★★★ Captivity | no | ★★★ required | no |
| Income test | affordability, not a limit | ★ none | ★ yes, to $48,000 |
| Age test | no | no | ★★ no on the veteran route |
| Residency | occupancy rules | citizen of Missouri | Missouri return |
| What you get | no deposit, no mortgage insurance | ★ homestead exempt | credit, capped at $1,550 of tax |
★★ Test one: the loan needs no disability whatsoever
Worth stating plainly because the other two tests sit right beside it. VA loan eligibility turns on service history and entitlement. A veteran in perfect health with full entitlement buys with nothing down; they simply have no tax benefit to claim. How entitlement works.
★ A disability rating does matter to the loan in one place: the funding-fee exemption. That is a federal question with its own list. The five exemptions.
★★★ Test two: the one almost everyone fails
Mo. Const. art. X, § 6 requires a former prisoner of war with a total service-connected disability. Both. A veteran rated 100% who was never captured does not qualify, however severe the rating.
★★★ This is the test the internet gets wrong, because proposals to widen it keep being introduced and keep being summarised as though they had passed. The proposals and where they actually stand · What the exemption covers.
★★ Test three: the one most disabled veterans can actually reach
RSMo 135.010 reaches a veteran who "became one hundred percent disabled as a result of such service" — no captivity, no age. The constraint here is income, and that constraint got substantially looser on 1 January 2026. How much looser.
★ The combinations we actually see
- ★★ 100% rated, not a POW, income under the limit. The common case. Loan: yes, and funding fee almost certainly waived. Exemption: no. Credit: yes. Start here
- 100% rated, not a POW, income over the limit. Loan yes, fee waived, and no state property-tax relief at all. Unwelcome, and better known early than late.
- ★★ Former POW with a total rating. The exemption, which is worth more than the credit and has no income test. Pursue it
- No disability rating. The loan, in full. No state tax relief, because neither programme is open without a rating.
★ What a lender decides, which is none of this
We underwrite and close the loan. We do not issue your COE, rate your disability, grant your fee exemption, approve an exemption or process a credit. We are not affiliated with the VA or any Missouri agency.
★ What we do is make sure the property-tax figure in your payment is the one that will actually apply, because that is what decides whether the payment works. The order to do it in.
Mike Certo, NMLS #260555. (480) 296-6513 · mcerto@cfmtg.com.
Frequently asked questions
Do I need a disability rating for a VA loan in Missouri?
No. VA loan eligibility turns on service history and entitlement. A rating matters separately, for the VA funding-fee exemption and for Missouri's property tax programmes, but not for the loan itself.I am rated 100 percent service-connected. Am I exempt from Missouri property tax?
Not unless you are also a former prisoner of war. Article X, section 6 of the Missouri Constitution requires both conditions. A veteran rated 100 percent who was not a prisoner of war should look at the Missouri Property Tax Credit instead.What is the difference between Missouri's veteran exemption and its property tax credit?
The exemption is constitutional, reaches former prisoners of war with a total service-connected disability, has no income test and no dollar cap, and removes the homestead from taxation. The credit is statutory, reaches veterans who became 100 percent disabled through service with no age requirement, is income-tested up to $48,000, and counts at most $1,550 of actual property tax.Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about VA home loan financing, not a loan commitment and not legal, tax or financial advice. Cornerstone First Mortgage is a private lender and is not affiliated with, endorsed by or acting on behalf of the U.S. Department of Veterans Affairs or any government agency. VA entitlement, funding-fee exemption and disability ratings are determined by the U.S. Department of Veterans Affairs. Missouri's property tax exemption for former prisoners of war is established by article X, section 6 of the Missouri Constitution, and the Missouri Property Tax Credit is governed by sections 135.010 to 135.030 of the Revised Statutes of Missouri and administered by the Missouri Department of Revenue, not by Cornerstone. Proposed constitutional amendments described on this site are proposals and are not law. Figures here carry the date we verified them against primary sources. All loans are subject to borrower, property and program qualification.