VA Home Loan Benefits for Surviving Spouses in New Jersey

Many surviving spouses can use the VA home loan benefit, generally when they're eligible for or receiving certain Dependency and Indemnity Compensation (DIC), and those receiving DIC don't pay the VA funding fee. In New Jersey, surviving spouses may also qualify for the State's veteran property tax deduction or the 100% disabled veteran exemption, which you apply for with your local assessor.

I'm Dennis Mark Interdonato with The Dennis Mark Group at Keller Williams Realty Ocean Living and the Market Center Representative for KW Military. I served 10 years in the U.S. Army Reserve, and every year I organize a Veteran Food Pantry Drive for the Bill Reeves Food Pantry in Toms River. When a surviving spouse is deciding whether to buy, sell or stay put, the first job is getting the facts straight. Here they are, from VA and the State.

Can a surviving spouse get a VA home loan?

Yes, if you meet VA's requirements. VA's eligibility page (updated September 22, 2026) says you may qualify if you're eligible for or receiving certain DIC benefits, or if you're the spouse of an active-duty service member who is missing in action or a prisoner of war.

VA's Home Loan Guaranty Buyer's Guide (Appendix E) breaks that down further. Along with a qualifying DIC award, the categories include:

• An unremarried surviving spouse of a Veteran who died in service, whether active, Reserve or National Guard, or from a service-connected cause.
• An unremarried surviving spouse of a Veteran whose death wasn't service-connected, if the Veteran was rated totally disabled for 10 or more years right before death, for at least 5 years from discharge, or, for a former prisoner of war who died after September 30, 1999, for at least 1 year before death.
• The spouse of a service member missing in action or a prisoner of war for more than 90 days, for as long as the service member is in that status. The guide says this is one-time use.
• A surviving spouse of a Veteran who died on active duty or from service-connected causes who remarried on or after December 16, 2003, after turning 57.

The guide adds two notes worth knowing. DIC awarded under 38 U.S.C. 1318 or 1151, or a VA pension, doesn't qualify a surviving spouse for the home loan benefit. And VA applies the same standards to all married couples, including same-sex spouses. VA makes the final call when you request your Certificate of Eligibility.

How does a surviving spouse request a COE?

VA's COE request page (updated September 22, 2026) lists what to send, and it depends on whether you already receive DIC:

• If you receive DIC: submit VA Form 26-1817, Request for Determination of Loan Guaranty Eligibility (Unmarried Surviving Spouses).
• If you don't receive DIC: submit VA Form 21P-534EZ, the application for DIC, death pension and/or accrued benefits, along with a copy of your marriage license and the Veteran's death certificate.
• Either way: include the Veteran's DD214 if you have it.

The COE is the document your lender needs to see. For the general request process, read how to get your VA Certificate of Eligibility.

Do surviving spouses pay the VA funding fee?

Not if you receive DIC. VA's funding fee page (updated October 5, 2026) lists receiving Dependency and Indemnity Compensation as a surviving spouse of a Veteran as one of the exemptions. On a first-use purchase loan with less than 5% down, the fee is 2.15% of the loan, so the exemption can be a meaningful number. Your COE shows your funding fee status. More in who pays the VA funding fee.

What New Jersey property tax benefits can a surviving spouse get?

The NJ Division of Taxation runs two programs that include surviving spouses, civil union partners and domestic partners. You apply with your local assessor, and both pages were updated August 12, 2025.

• $250 Veterans Property Tax Deduction. Requirements for a surviving spouse include being a New Jersey resident, owning the property, not having remarried or formed a new civil union or domestic partnership, and documenting the service of the deceased Veteran or service member and their New Jersey residency at death. Requirements must be met by October 1 of the year before the tax year. The form is V.S.S.
• 100% Disabled Veteran Property Tax Exemption. A surviving spouse who owns and occupies the home as their main residence, hasn't remarried, and can provide VA's certification of the Veteran's 100% permanent and total service-connected disability may qualify. The form is D.V.S.S.E.

If a claim is denied, the State says to appeal to the County Board of Taxation by April 1, and Monmouth County is one of three counties where the deadline is January 15. For the full picture, read the NJ $250 veteran deduction and the 100% disabled veteran exemption.

Should you stay, sell or buy something new?

There's no single right answer. Some surviving spouses keep the home. Some want something smaller or closer to family. Before you decide anything, know the number: my home value tool gives you a starting point, and I'll back it with a written market evaluation.

If the home needs to come out of the estate first, read selling the house after a spouse dies in New Jersey. If you're buying with the VA benefit, I'll plan the search, preview homes and write an offer that fits the loan. You get an update at every milestone.

Frequently Asked Questions

Do I have to be receiving DIC to get a VA home loan as a surviving spouse?

VA's eligibility page says you may qualify if you're eligible for or receiving certain DIC. If you aren't receiving it, VA's COE page has you apply with VA Form 21P-534EZ, your marriage license and the death certificate.

Which form does a surviving spouse use for the COE?

VA Form 26-1817 if you receive DIC, according to VA.gov.

Is a surviving spouse exempt from the VA funding fee?

Yes, if you receive DIC as the surviving spouse of a Veteran, according to VA's funding fee page.

Can I lose eligibility if I remarry?

It depends on the category. VA's Buyer's Guide lists remarriage on or after December 16, 2003, after age 57 as qualifying for spouses of Veterans who died on active duty or from service-connected causes. VA decides when you request your COE.

This is general information, not legal, tax or lending advice. VA determines your eligibility, your lender confirms the loan, and your local assessor confirms any property tax benefit. This site isn't affiliated with or endorsed by the Department of Veterans Affairs or the Department of Defense.

About the author

Dennis Mark Interdonato is a REALTOR® and Master CDRE® who leads The Dennis Mark Group at Keller Williams Realty Ocean Living in Point Pleasant, NJ, helping buyers and sellers throughout New Jersey make their next move, with Monmouth and Ocean County as home base. Read more about Dennis Mark, or see how I handle military moves.

Keep reading

• The Military Home Guide
• Home buying benefits for military buyers in New Jersey
• Have a question this didn't answer? Send it to Dennis Mark.