VA Loan & Veteran Benefits in Kansas: What Wichita Homebuyers Should Know (2026)

by James McGrew Jr

VA Loan Benefits in Kansas: What Every Veteran Buying a Home in Wichita Should Know (2026)

If you're a veteran or active duty service member buying a home in Wichita, there's a good chance you're leaving real money on the table. Not because of anything you did wrong, but because most of these benefits never get explained clearly in one place. This post walks through them in plain terms, with a link straight to the official VA or Kansas source for every claim, so you can verify everything yourself and take action if it applies to you.

I'm James McGrew Jr., a Realtor® with Real Broker LLC in Wichita, KS. I want to be upfront: I'm not a lender, and I'm not a tax professional. Everything below is sourced directly from VA.gov, the Kansas Department of Revenue, and the Kansas Office of Veterans Services, not lender blogs, not aggregator sites. But your specific situation should be confirmed with a licensed lender for loan questions and a tax professional or the Kansas Department of Revenue for tax questions. Numbers and thresholds change annually. Verify before you file or close.

Quick Reference — Does Any of This Apply to You?

Benefit	Who Qualifies	Worth
VA Funding Fee Exemption	Any compensable VA disability rating, Purple Heart on active duty, or surviving spouse receiving DIC	Full waiver, thousands of dollars
Kansas Property Tax Refund (K-40SVR)	50%+ permanent disability rating for the entire base year, income under $58,041, home value under $350,000	Refund freezing your tax at base-year level
Kansas Sales Tax Exemption (new July 1, 2026)	100% P&T or TDIU rating	Up to $24,000/year in tax-free purchases
Kansas Income Tax Exemption	100% P&T rating	Additional $2,320 exemption
SAH / SHA / TRA Housing Grants	Severe, specific service-connected disabilities (see below)	Up to $126,526, no repayment
VA Loan Entitlement / Second-Tier	Any veteran who's used a VA loan before	Buy again, potentially with $0 down
VA Loan Assumability	Buyers and sellers in any VA loan transaction	Inherit a below-market rate

Read the relevant section below for full detail and the direct link to confirm it yourself.

The VA Funding Fee — The Most Misunderstood Cost in the Entire Process

What it is. The VA funding fee is a one-time payment made at closing on most VA loans. It exists because VA loans don't require a down payment and don't charge monthly mortgage insurance like conventional or FHA loans do. The funding fee is what funds that guarantee instead.

Here's the part most veterans don't know: you might not have to pay it at all.

Per VA.gov directly, you're fully exempt from the funding fee if any of these apply to you:

You receive VA disability compensation for a service-connected condition, at any rating level. There is no minimum percentage. Any compensable rating qualifies you for a full exemption.
You'd be eligible for disability compensation but receive military retirement pay or active-duty pay instead.
You're an active-duty member of the Armed Forces and you provide evidence of having received a Purple Heart on or before your loan closing date. This applies regardless of disability rating.
You're the surviving spouse of a veteran who died in service or from a service-connected disability.

What that's actually worth. On a $260,000 home, right around Wichita's current median sale price, a first-time VA buyer who isn't exempt pays a funding fee around $5,590 (2.15%, no down payment). A veteran who qualifies for any of the exemptions above pays $0. That's not a discount. It's a full waiver.

Loan assumptions get a separate, much lower rate. If you're assuming an existing VA loan rather than originating a new one, the funding fee structure is different. Official VA Regional Loan Center documentation lists a flat 0.50% assumption fee, far below the standard purchase rates. Fee schedules are updated periodically, so confirm the current assumption rate with your lender or the VA before relying on this number.

The one mistake that trips people up. Your exemption status shows up on your Certificate of Eligibility (COE). If your COE doesn't reflect your exemption (maybe your disability rating came through recently), your lender is required to charge you the fee at closing regardless of your actual eligibility. You then have to request a refund.

Per VA.gov, refunds are available if your VA disability compensation has an effective date on or before your loan closing date. If you believe you're owed a refund, contact your VA Regional Loan Center.

Bottom line: confirm your COE accurately reflects your disability status or Purple Heart award before you get anywhere near closing. Don't assume the lender will catch it.

Official sources:

Kansas Property Tax Relief for Disabled Veterans (Form K-40SVR)

How it works. Kansas does not directly reduce your property tax bill. Instead, Kansas uses a refund system. You pay your full property tax bill first, then file Form K-40SVR with the Kansas Department of Revenue to claim a refund of the difference between your "base year" tax amount and your current year's tax amount, effectively freezing your property tax burden at the level it was when you first became eligible.

Because this is a refund and not a direct exemption, your lender will still escrow for your full property tax amount. Budget for the full payment and treat the refund as money that comes back to you annually, not a reduction in your monthly mortgage payment.

Who qualifies, precisely as stated by the Kansas Department of Revenue, not paraphrased:

Kansas resident for the entire prior year
Honorable discharge, or general discharge under honorable conditions
A permanent service-connected disability evaluation of 50% or greater, certified for the entire base year. A rating that started partway through the year or isn't designated permanent may not yet qualify; confirm your specific status with the VA
Household income of $58,041 or less for 2025 (Social Security benefits are not counted)
Home appraised value of $350,000 or less in your base year
Unremarried surviving spouses of qualifying disabled veterans remain eligible

These dollar figures (the income limit and home value cap) are specific to the current claim year and adjust periodically. Always confirm the current year's figures directly with the Kansas Department of Revenue before filing.

What you need to file: a copy of your original VA Disability Determination Letter showing your disability date and percentage, along with pages 1 and 2 of your federal Form 1040. File electronically through Kansas WebFile or by paper. Refunds typically take 20-24 weeks to process.

Official sources:

New for 2026: Kansas Sales Tax Exemption for Disabled Veterans

Effective July 1, 2026, this is new enough that almost nothing has been written about it yet.

Veterans with a 100% service-connected permanent and total disability rating, or who are rated totally disabled or unemployable (TDIU), with an honorable or general discharge under honorable conditions, are exempt from Kansas sales tax on purchases up to $24,000 per year.

This applies broadly, meaning new homeowners furnishing or equipping a home (appliances, furniture, home services) can put this exemption to real use. It does not apply to tobacco, electronic cigarettes, alcoholic beverages, or motor vehicles. Purchases made on the veteran's behalf by a spouse or authorized household member also qualify. Surviving spouses of qualifying veterans who pass away on or after July 1, 2026 remain eligible until they remarry.

To apply, attach:

A copy of your DD-214 showing "Character of Discharge"
Your VA award letter reflecting 100% service-connected and permanent & total, or TDIU status

Per the official instructions: do not send a commissary card or Member Copy 1 or Copy 3 of your DD-214. These don't show character of discharge and will delay your application.

Official source:

Kansas sales tax exemption application — Kansas Department of Revenue

Kansas State Income Tax Benefits

Directly from the Kansas Office of Veterans Services:

VA disability payments are not taxed in Kansas. Fully exempt from state income tax.

Military retirement pay is not taxed in Kansas. Fully exempt, whether you're already retired or planning ahead.

Additional personal exemption for 100% disabled veterans. Veterans certified by the VA at the 100% permanent and total rate receive an additional Kansas income tax exemption of $2,250 for tax year 2024, rising to $2,320 for tax year 2025 and after, claimed directly on your Kansas income tax return.

Official source:

State Veterans Benefits — Kansas Office of Veterans Services

Disability Housing Grants: SAH, SHA, and TRA

This is a benefit separate from your VA loan entirely. These are grants, not loans, and using one does not affect your VA loan entitlement or your ability to use a VA loan in the future. For veterans with severe, specific service-connected disabilities, this can be worth more than any other benefit in this post.

Specially Adapted Housing (SAH) grant: up to $126,526 for FY 2026, per VA.gov directly. To qualify, you must own or plan to own the home, and have a qualifying disability including:

Loss, or loss of use, of more than one limb
Loss, or loss of use, of a lower leg combined with the lasting effects of a related disease or injury
Blindness in both eyes (20/200 visual acuity or less)
Certain severe burns
Loss, or loss of use, of one lower extremity after September 11, 2001, that prevents balancing or walking without braces, crutches, canes, or a wheelchair (limited to 120 grants per fiscal year under this specific category, per federal law)

Special Home Adaptation (SHA) grant: up to $25,350 for FY 2026, for veterans or family members who own or will own the home, with a qualifying disability including:

Loss, or loss of use, of both hands
Certain severe burns
Certain respiratory or breathing injuries

Temporary Residence Adaptation (TRA) grant: if you're temporarily living in a family member's home that needs modification and you qualify for SAH or SHA, you can get an additional $50,961 (SAH-qualified) or $9,100 (SHA-qualified) for FY 2026.

Both SAH and SHA can be used up to 6 separate times over your lifetime, as long as the cumulative total doesn't exceed the maximum, meaning you don't have to use it all on one home or one project.

Apply online through VA Form 26-4555.

Official sources:

VA Loan Entitlement and Second-Tier Entitlement — Buying Again Without Selling First

In plain terms: your VA entitlement is the amount the VA guarantees to your lender if you default. Per VA.gov, it's split into basic entitlement ($36,000, covers loans up to $144,000) and bonus entitlement, also called second-tier entitlement, which covers larger loans. If you have full entitlement available, you can buy with zero down payment again, even if you've used a VA loan before, as long as you haven't sold your previous home and paid off that loan, or otherwise restored your entitlement.

If you still own a previous home purchased with a VA loan, you may have partial entitlement remaining, which can still support a new purchase, potentially with a smaller or no down payment, depending on the county loan limit where you're buying and how much entitlement is already in use.

This matters for service members who've been on multiple PCS moves and are considering keeping a previous home as a rental while buying again in Wichita. Your lender calculates exactly what's available by pulling your Certificate of Eligibility.

Official source:

VA home loan entitlement and limits — VA.gov

VA Loans Are Assumable — What That Means for Buyers and Sellers

VA loans can be assumed by a future buyer, meaning someone purchasing a home with an existing VA loan can take over that loan's remaining balance, interest rate, and terms instead of originating a brand-new loan. According to the official VA Home Loan Guaranty Buyer's Guide, the assumer doesn't even have to be a veteran, though if a non-veteran assumes the loan, the original veteran's entitlement stays tied to that property until the loan is paid off in full, unless the buyer is also a veteran who substitutes their own entitlement.

For buyers: if you find a home in Wichita with an assumable VA loan carrying a rate well below current market rates, that can represent real savings. Assumption comes with its own funding fee structure, separate and lower than originating a new loan.

For sellers with a VA loan: if your loan is assumed, you are not automatically released from liability. You need a formal Release of Liability from your loan servicer to fully detach your name and credit from that mortgage. Don't rely on a verbal understanding, get it in writing through the proper process.

Official source:

VA Home Loan Guaranty Buyer's Guide (PDF) — VA.gov

What to Do Next

Confirm your Certificate of Eligibility reflects your current disability status or Purple Heart award before you start shopping for a lender. This determines your funding fee exemption.
If you have a service-connected disability rating, ask your lender directly about your funding fee exemption before you sign anything.
If your disability rating is permanent and 50% or greater, look into filing Form K-40SVR after your first full year of Kansas residency and homeownership.
If you're rated 100% P&T or TDIU, mark July 1, 2026 on your calendar for the new Kansas sales tax exemption and gather your DD-214 and VA award letter now.
If your disability involves significant mobility, vision, or limb loss, look into the SAH or SHA grant before you start house hunting. It may change what kind of home and modifications you're searching for.
If you've used a VA loan before, ask your lender to pull your Certificate of Eligibility early to understand your remaining entitlement.
Any specific tax questions go to a tax professional or the Kansas Department of Revenue directly, not your real estate agent.
Any specific loan questions go to a VA-experienced lender. Verify your exemption status and entitlement before you're under contract.

For the broader picture of buying in Wichita, including pre-approval, the local market, and what to know before you talk to a lender, the pre-approval guide covers the full process. If you're PCSing to McConnell AFB specifically, the McConnell relocation guide covers BAH, timing, and off-base housing decisions in detail.

FAQ

Do all veterans pay the VA funding fee?
No. Veterans receiving VA disability compensation at any rating level are fully exempt, as are active-duty Purple Heart recipients and surviving spouses of veterans who died in service or from a service-connected disability. Confirm your exemption status on your Certificate of Eligibility before closing.

How much can a Kansas veteran save on property taxes?
Kansas uses a refund system through Form K-40SVR. Eligible veterans with a permanent 50%+ disability rating held for the entire base year, household income under $58,041, and a home valued under $350,000 in their base year can receive a refund equal to the difference between their base-year and current-year property tax.

Is the new Kansas sales tax exemption only for 100% disabled veterans?
Yes. It applies to veterans certified at 100% permanent and total disability, or rated totally disabled or unemployable (TDIU). It does not apply to veterans rated below 100%.

Can I get a VA loan again if I already used one?
Yes, if you have remaining entitlement. If you sold your previous home and paid off the VA loan, your entitlement is restored. If you still own the previous home, you may have partial entitlement that can support a new purchase.

Are housing grants the same thing as a VA loan?
No. SAH, SHA, and TRA are grants, not loans, for veterans with severe, specific service-connected disabilities to buy, build, or modify a home for accessibility. They don't require repayment and don't affect your VA loan entitlement.

Can someone who isn't a veteran assume my VA loan if I sell my house?
Yes. VA loans can be assumed by qualified buyers regardless of veteran status. If a non-veteran assumes your loan, your VA entitlement remains tied to that property until the loan is paid in full, unless the buyer is a veteran who substitutes their own entitlement. Always obtain a formal Release of Liability when your loan is assumed.

Where do I verify my specific eligibility for these benefits?
For VA loan, funding fee, and housing grant questions: contact a VA-approved lender or the VA Regional Loan Center. For Kansas tax benefits: contact the Kansas Department of Revenue Taxpayer Assistance Center at (785) 368-8222, or the Kansas Office of Veterans Services at (785) 296-3976.

If you're a veteran considering a home purchase in Wichita and want to talk through how any of this applies to your specific situation (your budget, your timeline, what you might qualify for), reach out before you're under contract, not after.

316-284-7767 | James@MovewithMcGrew.com

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Disclaimer: I am a licensed Realtor® with Real Broker LLC in Kansas. I am not a lender, mortgage professional, or tax professional. The information in this post is sourced directly from VA.gov, the Kansas Department of Revenue, and the Kansas Office of Veterans Services, with the exact source linked for every claim. Eligibility requirements, exemption amounts, income limits, grant maximums, and tax rules are subject to change and are reviewed and adjusted by these agencies, not by me. Verify your specific situation with a licensed lender for loan-related questions and a tax professional or the Kansas Department of Revenue for tax-related questions before making financial decisions. This post does not constitute financial, legal, or tax advice.