FHA and VA Loans Are Surging in 2026 — Here's What It Means for You

FHA and VA loan volumes have jumped sharply in the first half of 2026, signaling strong demand for government-backed mortgages among homebuyers. Here's why this trend matters if you're buying a home in California.

If you've been on the fence about using a government-backed loan to purchase a home, the rest of the market is clearly moving in that direction — and for good reason.

In the first half of 2026, FHA loan volume climbed over 21% compared to the same period last year, topping $281 billion nationwide. VA loan volume grew even faster, jumping nearly 40% to over $134 billion. These aren't small numbers — this is a major shift in how Americans are financing home purchases.

What's driving this? Purchase activity is outpacing last year's pace, even as refinancing has slowed. That tells us buyers are actively entering the market and leaning on FHA and VA programs to make homeownership more accessible — lower down payments, flexible credit requirements, and competitive rates.

For California buyers, this is a reminder that FHA and VA loans can be powerful tools, especially in a high-cost market. VA loans in particular offer zero down payment options for eligible veterans and active-duty service members — a huge advantage when home prices remain elevated.

If you're a first-time buyer or a veteran exploring your options, now is a great time to see what these programs can do for you. Contact us today to find out if you qualify and get a personalized rate quote.