The Alabama Legislature passed a law enacting the Disabled Veterans Property Tax Debt-To-Income Ratio Exemption Act, which allows veterans with 100 percent disability ratings from the U.S. Department of Veterans Affairs to obtain tentative certificates exempting them from homestead ad valorem taxes when applying for mortgage loans. The law includes prohibiting settlement agents and loan closing officers from considering these property taxes when calculating debt-to-income ratios for qualifying veterans, potentially improving their loan eligibility. The law takes effect Oct. 1. [H.B. 77, enacted 03/17/26]
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Alabama Enacts Disabled Veterans Property Tax Exemption Act for Loans
