With Veterans Day coming up on November 11, I’ve been thinking about the veterans I’ve had the privilege of helping buy homes here in Shasta County. A lot of them came in assuming they’d need 20% down, or that a VA loan was “too much hassle” for a seller to accept. Neither is true.
The VA home loan is one of the best benefits our veterans earned, and in a market where the 30-year fixed is averaging 7.40% (Freddie Mac, October 15, 2026), every advantage counts. Zero down, no monthly mortgage insurance, and competitive rates can make a real difference in what you can afford in Redding, Anderson, Palo Cedro, or out in the county.
Here’s how VA loans actually work in 2026, what’s different about using one in our area, and a couple of California-specific benefits that a lot of local veterans don’t know about.
Who Qualifies for a VA Home Loan
VA loans are available to most veterans, active-duty service members, and many National Guard and Reserve members who meet minimum service requirements. Some surviving spouses qualify too.
The first step is getting your Certificate of Eligibility (COE). Most VA-approved lenders can pull it for you in a few minutes, or you can request it through VA.gov. If you’re not sure whether your service counts, the Shasta County Veterans Service Office in Redding is a great free resource, and they’re good people.
One thing I tell everyone: the VA doesn’t make the loan. A private lender does, and the VA guarantees part of it. That means lenders still look at your credit, income, and debts, so it pays to talk with a lender who closes a lot of VA loans.
The Big Benefits: Zero Down and No PMI
This is where the VA loan really shines for Redding buyers.
- No down payment required for eligible borrowers with full entitlement.
- No monthly private mortgage insurance (PMI). On a conventional loan with less than 20% down, PMI can add a noticeable amount to your monthly payment. VA loans don’t have it.
- No county loan limit with full entitlement. Since 2020, veterans with full entitlement aren’t capped by the county loan limit. Your lender’s approval and your budget set the ceiling.
- Rates are often competitive with, or lower than, conventional rates for similar borrowers.
If you’ve used your benefit before and still have a VA loan open, you may have partial entitlement. In that case the 2026 conforming limit ($832,750 for a one-unit home in most counties, including Shasta) comes into play when figuring how much you can borrow with zero down. Your lender can run the numbers.
Understanding the 2026 VA Funding Fee
Instead of monthly mortgage insurance, the VA charges a one-time funding fee. You can pay it at closing or roll it into the loan. For purchase loans in 2026:
- First use, less than 5% down: 2.15%
- Subsequent use, less than 5% down: 3.3%
- 5% to 9.99% down: 1.5%
- 10% or more down: 1.25%
Here’s the part that matters most: veterans receiving VA compensation for a service-connected disability are exempt from the funding fee entirely. So are certain surviving spouses and active-duty Purple Heart recipients. If you have a disability rating, make sure your lender knows. On a $400,000 home, that exemption saves about $8,600 on a first-use loan.
Using a VA Loan in Shasta County: What’s Different Here
Redding isn’t a typical suburban market, and VA loans have some property rules that come up more often here than in a big city.
The VA appraisal and Minimum Property Requirements. A VA appraiser checks that the home is safe, sound, and sanitary. Things like peeling paint on older homes, missing handrails, roof issues, or a broken heater can be flagged and need to be fixed before closing. That’s not a deal-breaker. It just means we plan for it in the negotiation.
Wells and septic. Plenty of homes in Palo Cedro, Shingletown, Igo, and Happy Valley are on wells and septic. VA loans allow them, but the lender may require water testing and sometimes a septic inspection. We build that time into the contract.
Manufactured homes and acreage. VA loans can work for manufactured homes on a permanent foundation and for rural properties, but there are extra requirements. The home is supposed to be primarily residential, not a working farm or income property.
Wildfire and insurance. Insurance is a bigger part of the budget here than many buyers expect. Get an insurance quote early, before you’re deep in escrow, so there are no surprises.
“Will a Seller Take My VA Offer?”
I hear this one a lot. The honest answer: yes, a well-written VA offer is a strong offer.
Some sellers worry about the VA appraisal or about paying the veteran’s closing costs. A few things help:
- A solid pre-approval from a lender who knows VA loans and returns calls.
- A clear plan for inspections and repairs, so the seller knows what to expect.
- Sensible requests for seller concessions. The VA allows sellers to pay a buyer’s closing costs and up to 4% in additional concessions (like paying off debts or the funding fee). In this rate environment, many sellers are open to it, but how much to ask for depends on the home and how long it’s been on the market.
In a slower fall market like the one we’re in, I’ve found VA offers compete just fine. The key is presenting them well.
California Benefits Local Veterans Often Miss
The Disabled Veterans’ Property Tax Exemption. If you have a 100% service-connected disability rating (or are paid at the 100% rate due to unemployability), California exempts part of your home’s assessed value from property tax. For the 2026 lien date, the basic exemption is $180,671, and the low-income exemption is $271,009 for households earning under $81,131 (California State Board of Equalization). You file with the Shasta County Assessor’s office. For many qualifying veterans, that’s a big annual savings.
CalVet Home Loans. California runs its own veteran home loan program through CalVet. It works differently than a federal VA loan (the state technically holds title until it’s paid off), and it can be combined with your VA eligibility in some cases. It’s worth asking about, especially if you’re buying a rural property or manufactured home. Check current rates and terms directly with CalVet.
A Simple Game Plan
If you’re a veteran or service member thinking about buying in Redding, here’s where I’d start:
- Get your COE and find out if you’re exempt from the funding fee.
- Talk to a lender who closes VA loans regularly and get fully pre-approved.
- Set a real monthly budget, including taxes and insurance, not just the loan payment.
- Look at homes with the VA appraisal in mind, and plan for minor repairs.
- If you’re rated at 100%, file for the property tax exemption right after you close.
Let’s Talk
To every veteran and military family in Shasta County: thank you. If you’re thinking about using your VA benefit, I’d be glad to walk you through it, connect you with lenders who know VA loans inside and out, and help you find the right home here. No pressure, just honest answers.
530-953-1100 · jcreteam.com/contact · [email protected]
About Justin Cartwright — Justin Cartwright is a third-generation Shasta County resident and licensed REALTOR® with Waterman Real Estate in Redding, CA. He and the JCRE Team specialize in helping buyers and sellers navigate the Redding and greater Shasta County market with honest guidance and genuine care. DRE License #02093872 · Waterman Real Estate, 1760 Churn Creek Rd, Redding, CA 96002 · 530-953-1100.
Sources: Freddie Mac Primary Mortgage Market Survey (October 15, 2026); U.S. Department of Veterans Affairs funding fee schedule (2026 purchase loan rates, as published by VA-approved lenders); FHFA 2026 conforming loan limits; California State Board of Equalization, Disabled Veterans’ Exemption amounts for the 2026 lien date; CalVet Home Loans. This post is general information, not lending or tax advice. Confirm your eligibility and figures with your lender, the VA, and the Shasta County Assessor.
