Will Your Lender Tell You About VA Loans When You Apply for an FHA Loan?
Yes. Under a law signed July 11, 2026, the cost comparison a lender gives you with an FHA loan now has to include a VA-guaranteed loan. Before, it compared the FHA loan only with a conventional loan. So a veteran weighing an FHA loan gets to see the VA option on the same page. The change comes from the Veterans Affairs Loan Informed Disclosure Act, or VALID Act, which is section 603 of Public Law 119-101.
Last updated October 27, 2026What the notice compares
The notice is a one-page disclosure, sometimes called the FHA Informed Consumer Choice Disclosure, and the lender gives it to you in connection with an FHA loan. It sets the FHA loan's note rate and interest, its mortgage insurance premiums, and its other costs and fees over the life of the loan beside what you'd expect to pay with other loans that lender offers and you'd qualify for, at a similar loan-to-value ratio:
- a conventional loan, assuming prevailing interest rates
- a VA-guaranteed loan, assuming prevailing interest rates (the part the VALID Act added)
It also tells you when the FHA mortgage insurance premium would stop, or that it stops only if the loan is refinanced or paid off.
Is the notice a VA eligibility check?
No. The same law says a lender isn't required to determine whether you qualify for a VA loan, or for any other loan in the notice. Your VA eligibility is shown on a Certificate of Eligibility, which you can request from VA online or through a lender that makes VA loans. If the VA column looks better, ask for a VA quote and the certificate at the same time.
A military service question is coming to the loan application
The VALID Act also directs the Federal Housing Finance Agency to have Fannie Mae and Freddie Mac add a military service question to the Uniform Residential Loan Application, the standard mortgage application form. The answer choices would be Yes, No and Prefer Not To Answer, with the question placed above the signature line. FHFA has until January 11, 2027, six months after the law was signed, to require it and to issue a rule carrying it out.
| Law | VALID Act, section 603 of Public Law 119-101 |
|---|---|
| Signed | July 11, 2026 |
| FHA cost comparison | Now includes a VA-guaranteed loan as well as a conventional loan |
| VA eligibility | The lender isn't required to decide whether you qualify |
| Loan application | FHFA must require a military service question by January 11, 2027 |
Related questions
- what's the Difference Between an FHA Loan and a Conventional Loan
- when Is PMI or FHA Mortgage Insurance Required, and How Do I Remove It
- how Do DD-214 Status, an Early or Incomplete Discharge, or Being a Veteran's Dependent Affect VA Loan Eligibility
- does VA Disability Exempt You From the VA Funding Fee
- what Are the Benefits of a VA Loan Compared to Other Loan Types
Sources
- https://www.govinfo.gov/content/pkg/PLAW-119publ101/html/PLAW-119publ101.htm
- https://www.law.cornell.edu/uscode/text/12/1709
- https://www.va.gov/housing-assistance/home-loans/how-to-request-coe/
Sourced from licensed loan officers and brokers in the FreeRateUpdate network.
Educational information only, not individualized financial or legal advice. Program details and rates change; verify current terms with a licensed loan officer before making a decision.