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Grants for Agencies from the VA

The VA Home Loan Guarantee Program not only offers help for veterans to purchase homes, but also offers grants and per diem aid for agencies and investors who want to offer housing for homeless veterans. In this way the VA not only serves veterans who are able to purchase a home, but they also serve those veterans who are in need of immediate housing assistance.

Grants are offered to purchase and renovate transitional housing for homeless veterans. Per Diem funds are funds used for operational costs to run programs that serve veterans in need. Grants can be used for capital purchases such as buildings, renovation materials, and services. Per Diem funds can not be used for capital expenses. In order to get Per Diem funds you must first be approved for grant funding. Both of these funding programs have rules for how to apply, who can apply, and what they can be used for. Some of these rules include:

• 65% of the cost to purchase, construct, and renovate housing for homeless veterans can be requested through the VA Grant Program.
• The supportive housing must service a minimum of 75%
• Once a program exists for supportive services for veterans the program can apply for money to purchase vans as transportation to the services offered.
• If you already have assistive housing and are applying for a grant to pay off the mortgage, you can receive the grant as long as the lender specifies the mortgage is eligible to be pre-paid.
• You can not use grant funds to lease any building, only for the purchase of buildings.
• You can not use grant money to purchase or renovate buildings that you plan to turn ownership of over to the veteran. The grant program is designed to give funds to transitional housing for homeless veterans, not permanent housing.
• You can charge the veterans who live in your transitional housing rent as long as they have an income and the rent is not higher than 30% of their monthly income.
• Per Diem funds are awarded to programs that have already received grants form the VA or programs that are already established and whose clients consist of a minimum of 75% veterans.
• If you have received grants from the VA you will automatically be considered for Per Diem funding.

It is important to know that there are specific application deadlines. Make sure you follow all of the application procedures accurately and turn in your grant or per diem funding requests on time. To find out what the deadline for application is go to the GPO Access Site or call 1-877-332-0334.

For more information on the grant and per diem programs and funding contact your local VA Regional Service Center.

The VA Home Loan Program is a valuable tool that is available for veterans to use for more opportunities for home ownership.

See a related article: Learn More About Repairing Credit Before Obtaining a VA Loan

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