Jennie,
I just happened to remember - there is a recent push (since about August 2012) to have NO homeless Veteran.   There are Homeless Coordinators at every single VA across the country to prevent homelessness.  I know that you are not at that point yet and we all pray that you never do get to that point, but do be sure and take advantage of any help that they can give you at your local VA in regard to financial assistance.  You don't have to be homeless to get help.  If there is even a remote possibility that in the next two months that you could possibly be in that situation, they want to help you. There are social workers who know many resources in your community.  Perhaps they could help Steve find some work at the VA through a program and then once he gets his foot in the door he can apply for openings as they come available.  You may not even live close to a VA hospital - but these are just some ideas/thoughts.
 
Here is a website that may give you some more information:  http://va.gov/homeless/help_a_homeless_veteran_general.asp?utm_source=adcenter&utm_medium=cpc&utm_term=veterans%20homeless&utm_content=Veteran_Homeless&utm_campaign=Search_Veteran_Homeless
 
Not only this, but there is also a mandate that they have to hire a Veteran over any other individual.  That is the information that I am trying to lay my hands on for you.  As soon as I get something, I will send it forward.
 
In regard to your elderly step-mother - first of all, what a sweet, sweet blessing you have given her to allow her to come and live with your family.  You will have a reward awaiting you in Heaven.  But, I wondered if you could ask if there is some attorney who will work on her behalf to obtain the disability?  We have an attorney in my city who works on behalf of those with little to no money and who cannot work to help them obtain benefits.  They should be very experienced in this process because they do it all of the time.  They should know the in's and out's. 
 
It is also wonderful that you are staying upbeat for the sake of the children, that is so very important.
 
God bless,
Kim D