Veterans Mortgage Life Insurance (VMLI)

Army National Guard: Federal Active Duty

Benefit Fact Sheet



Veterans Mortgage Life Insurance (VMLI) is a program that provides mortgage life insurance to severely disabled Veterans and Service members. Effective July 30, 2008, VMLI was extended to disabled active duty Service members and Service members and Veterans who suffer from a severe burn injury. It provides up to $200,000 mortgage life insurance payable only to the mortgage holder in the event of the Veterans or Service members death.


VMLI is only available to Army National Guardsmen on Federal active duty with severe service-connected disabilities who:

  • Received Specially Adapted Housing (SAH) grant to help build, remodel, or purchase a home, AND
  • Have the title to the home, AND
  • Have a mortgage on the home

Veterans must apply for VMLI before their 70th birthday. The Specially Adapted Housing (SAH) Grant is a grant to help disabled Veterans and Service members build, purchase, or modify a home to accommodate his or her disabilities. Click here to read more about this grant.

Benefit Highlights:

Coverage Available:

VMLI provides up to $200,000 mortgage life insurance and is payable only to the mortgage holder (i.e., a bank or mortgage lender), not to a beneficiary. The amount of coverage will equal the amount of the mortgage still owed, but the maximum can never exceed $200,000. VMLI is a decreasing term insurance which reduces as the mortgage balance declines. VMLI has no loan or cash values and does not pay dividends.

VMLI Premiums are based on your age, the current balance of your mortgage loan, how long you must continue to make mortgage payments until the mortgage is paid off, and the amount of VMLI coverage. Click here to access the VMLI premium calculator which will help determine your premium amount.

Applying for Coverage:

Servicemembers or Veterans who receive a grant for the purchase of Specially Adapted Housing are advised by Loan Guaranty personnel at their interview of their eligibility for VMLI to cover the unpaid mortgage on their home.

The Specially Adapted Housing Agent will help the Servicemember or Veteran complete VA Form 29-8636, Application for Veterans' Mortgage Life Insurance. If a Servicemember or Veteran does not apply for VMLI coverage at that time, VA will send a letter informing them that they are eligible for such coverage. In addition to completing VA Form 29-8636, the Servicemember or Veteran must provide information about their current mortgage.

Additional Information:

For more information, please visit the VMLI webpage maintained by the Department of Veterans Affairs at:  

Document Review Date: 5 December 2016