Shasta County is home to somewhere north of 12,000 veterans — close to one in ten people who live here. I run into them constantly: at open houses, at the counter at the hardware store, at my kids’ ball games. And a surprising number of them have never seriously looked at their VA home loan benefit, or they looked at it years ago, heard something discouraging, and never came back to it.
That’s a shame, because in a market like ours the VA loan is arguably the strongest financing tool a buyer can bring to the table. Zero down payment and no monthly mortgage insurance is not a gimmick — it’s a real, meaningful difference in what you can afford here.
I’m not a lender, and this isn’t loan advice. But I’ve sat at enough closing tables with VA buyers to know where these deals go smoothly and where they fall apart. Here’s what I’d tell a friend.
What the VA Loan Actually Gets You
Three things matter most.
No down payment. On a $400,000 Redding home, a conventional buyer is often bringing $20,000 to $80,000 to the table. A qualified VA buyer with full entitlement can bring nothing toward the down payment. That’s the whole ballgame for a lot of younger veterans who have the income but not the savings.
No private mortgage insurance. Conventional loans under 20% down and FHA loans both carry monthly mortgage insurance. VA loans don’t — ever. On a mid-priced Redding home that’s often $150 to $250 a month that stays in your pocket, every month, for the life of the loan.
Generally competitive rates and more forgiving credit standards. VA loans are backed by the Department of Veterans Affairs, which lets lenders price them aggressively. For context, Freddie Mac put the average 30-year fixed at 6.71% the first week of September 2026, up slightly from 6.66% the week before. VA rates frequently come in at or a bit below conventional.
The Funding Fee — and Who Doesn’t Pay It
There’s no monthly mortgage insurance, but there is a one-time VA funding fee rolled into the loan. For 2026, a first-time VA borrower putting nothing down pays 2.15% of the loan amount. Put 10% or more down and it drops to 1.25%. If you’ve used the benefit before and are buying again with zero down, the fee is 3.3%.
Here’s the part I wish more local veterans knew: if you have a service-connected disability rating and receive VA compensation, the funding fee is waived entirely. Same for surviving spouses receiving DIC and for Purple Heart recipients on active duty. That’s a five-figure savings on a typical Redding purchase, and I’ve watched buyers find out about it only because their lender caught it late in the file.
If you’re rated and you already closed a VA loan without the waiver, it’s worth asking about a refund. It happens.
“No Loan Limit” Doesn’t Mean No Limit
You’ll read that VA loans have no loan limits anymore. That’s true — but only if you have full entitlement.
If you currently have another VA loan outstanding, or you lost entitlement to a past foreclosure or short sale, you have partial entitlement, and county loan limits come back into play. The 2026 baseline limit for a one-unit home in a standard county is $832,750. Shasta County sits at the baseline, which for our price range is plenty of room — but the math on how much of your entitlement is left still matters.
This comes up more often than you’d think with military families who bought near a duty station somewhere else and are now relocating to the North State. Have your lender pull your Certificate of Eligibility early. Not the week before you write an offer — early.
Where Shasta County VA Deals Actually Get Tripped Up
The VA appraisal isn’t just about value. The appraiser also checks the home against the VA’s Minimum Property Requirements — basically, is it safe, structurally sound, and sanitary. In a county with as much rural inventory as ours, that’s where the friction shows up.
A few things I watch for on our local properties:
- Well and septic are fine — until they’re too close. The VA does not require city water or sewer. Private wells, shared wells, and septic systems are all allowed. But if the well sits within 100 feet of the septic system, the property fails MPRs. On older parcels out toward Palo Cedro, Happy Valley, or Igo, that’s not a rare layout. It’s the single most common deal-killer I see on rural VA purchases.
- Water testing. Expect a potability and bacteria test on any well, plus a flow test showing adequate supply. Septic gets a full inspection when the appraiser sees a reason for one or the lender requires it.
- Peeling paint, bad roofs, and exposed wiring. These get flagged. On a home that’s been sitting, they’re negotiable — but the seller needs to know going in that repairs may be required before closing, not after.
- Outbuildings and acreage. Larger parcels are allowed, but the appraiser is valuing a residence, not a working operation. If you’re looking at ten acres with a shop and a barn, tell your agent and lender up front.
None of this should scare you off rural property. It just means a VA buyer needs to write the offer with these realities baked in, and needs an agent who’s had these conversations before.
The Property Tax Break a Lot of Local Veterans Miss
This one has nothing to do with the loan, but it’s money, and it’s routinely left on the table.
California offers a Disabled Veterans’ Property Tax Exemption for veterans rated 100% service-connected disabled (or compensated at the 100% rate for individual unemployability). For 2026, the basic exemption is $180,671 off assessed value, with a low-income version at $271,009 for households at or below $81,131 in annual income.
On a Shasta County tax bill, that’s real money every single year. The basic exemption is a one-time filing; the low-income version has to be refiled annually. You claim it through the Shasta County Assessor’s office. If you’re eligible and haven’t filed, do it.
A Word to Sellers Who Hear “VA Offer”
I still run into sellers who flinch at a VA offer, usually on one of two beliefs.
“VA loans take forever.” They don’t, not anymore. VA files close on roughly the same timeline as conventional in our market. What causes delays is a property with MPR issues — and you’d have found those problems with any buyer’s inspection anyway.
“The buyer has no skin in the game.” Zero down is a benefit earned through service, not a sign of a weak buyer. VA borrowers are underwritten on residual income, which is one of the more conservative standards out there, and VA loans have historically had strong performance.
If two offers land on your Redding listing at the same price and one is VA, the VA offer is not the weaker one by default. Judge it on the buyer, the lender, and the terms — same as any other.
Thinking About Using Your Benefit?
If you’re a veteran in Shasta County wondering whether now is the time, I’m happy to walk through it with you honestly — including telling you if I think you should wait. I can connect you with local lenders who close VA files here every month and know our rural properties, and I’ll help you look at homes that will actually make it through a VA appraisal instead of wasting your time.
Reach out anytime: 530-953-1100 · jcreteam.com/contact · [email protected]
Sources: Freddie Mac Primary Mortgage Market Survey (September 3, 2026); U.S. Department of Veterans Affairs funding fee and Minimum Property Requirements guidance; 2026 conforming/VA county loan limits; CalVet and the California State Board of Equalization for Disabled Veterans’ Exemption amounts; U.S. Census Bureau / CalVet county veteran population estimates. Loan terms, fees, and eligibility vary by borrower and lender — confirm your specifics with a licensed loan officer.
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.
