What does the 3.6% VA disability COLA mean for your check and your home search?

Short answer: the 3.6% COLA is official, and VA disability checks are on track to go up by the same percent. VA disability can count as income on a VA loan, so a bigger check may help your homebuying numbers. Your lender decides what counts and when.

I'm a Marine Corps veteran, a Realtor and a licensed loan officer, so I like breaking this stuff down in plain words. (Sources checked Oct 16, 2026.)

What's the 3.6% COLA?

COLA stands for cost-of-living adjustment. On Oct 14, 2026, Social Security announced a 3.6% increase for 2027. (SSA announcement)

Why does that matter for VA checks? Because federal law says VA's COLA has to match Social Security's percentage. (VA.gov, compensation rates)

AL.com ran the numbers for a few ratings. One example: a 100% rating with no dependents goes from $3,939 to $4,080 a month. (AL.com) Your own number depends on your rating and your family. VA.gov still shows the current 2026 rates, and it will post the official 2027 rates once the bill is law.

Is it a done deal for VA checks?

Almost, but not quite. Congress has to pass a bill every year to raise VA disability rates. (Stars and Stripes)

This year's bill is the Veterans' Compensation Cost-of-Living Adjustment Act of 2026. It's written to raise rates starting Dec 1, 2026. (H.R. 8552 and S. 4487 on Congress.gov) As of Oct 16, Congress.gov shows neither bill has passed yet, so it isn't law. It's worth keeping an eye on.

When would I see the new amount?

The new rates start Dec 1, 2026. VA pays each month's benefit at the start of the next month. When the 1st is a holiday, it pays on the last business day before. (VA benefit payment schedule bulletin)

Jan 1 is a holiday, so the December benefit would normally land on Dec 31. AL.com's Oct 12 story says the same. Stars and Stripes says Dec 31 or early January. You don't have to file anything. The increase is applied automatically. (Stars and Stripes)

Does VA disability count as income for a VA loan?

It can. VA's lender handbook says lenders can count "disability income" as effective income if it's reasonable to expect it to continue. (VA Pamphlet 26-7, Chapter 4)

Two things to know:

• It has to be verified. The handbook says only verified income can be counted. Your lender will tell you what paperwork they need.
• It's one piece of the picture. VA looks at your income compared to your debts. It also looks at what's left over after your bills each month. (38 CFR 36.4340)

So can a bigger check mean more house?

It might. Lenders look at how much income you have compared to your debts. More verified income can change that math.

But a few things keep this from being automatic:

• Your debts, credit and savings still matter.
• Your lender can only count income they can verify. So ask when they'd count the new amount.
• No one can promise you'll qualify or for how much. Every file is different.

The best move is to talk to a lender before you shop. You'll know your real numbers before you fall for a house.

A reality check on the raise

A bigger COLA doesn't always mean more breathing room. It usually comes from higher prices. A financial services firm told Stars and Stripes that a bigger COLA may just mean you're also paying more for gas and groceries. (Stars and Stripes) So build your budget around what you're comfortable with, not just what a lender might approve.

Is there a VA funding fee break?

Yes, for many disabled veterans. VA says you won't pay the VA funding fee on a VA home loan if you're receiving VA compensation for a service-connected disability. There are a few other exceptions too. (VA.gov, funding fee) Your lender can confirm if it applies to you.

What about property taxes in Texas?

Texas has property tax exemptions for disabled veterans. What you get depends on your VA disability rating. You apply through your county appraisal district. The usual deadline is April 30. Start here: Texas Comptroller, property tax exemptions. (Disabled veteran FAQ)

Quick checklist before you talk to a lender

• Grab your latest VA benefit paperwork.
• List your monthly debts.
• Ask when the new COLA amount would count.
• Ask if you're exempt from the VA funding fee.
• Ask about your Certificate of Eligibility.

FAQ

Is the 2027 VA disability COLA really 3.6%? Yes. Social Security announced 3.6% on Oct 14, 2026, and VA's COLA has to match it. (SSA, VA.gov)

When does it start? Dec 1, 2026, once Congress passes the bill. (S. 4487)

Do I need to apply for the increase? No. It's applied automatically. (Stars and Stripes)

Can I use VA disability to qualify for a VA loan? It can count as income when it's verified and expected to continue. Your lender makes the call. (VA Pamphlet 26-7)

Will the raise help me buy a bigger home? It might help, but it's not automatic. Your debts, credit and savings still count, and lenders can only use income they can verify.

Do I still pay the VA funding fee? Not if you're receiving VA compensation for a service-connected disability. Your lender can confirm. (VA.gov)

Thinking about buying in Rockwall or Kaufman County?

Text Dylan at 972-951-6987. I'll walk you through your options, in plain words, with no pressure.

Related: VA appraisal came in low in Texas? Here's what to do · Got PCS orders and own a home in DFW? · My Realtor is also my loan officer. Is that allowed?

Serving Rockwall County, Kaufman County and the greater DFW area.

Dylan Hernandez, Team Leader, DH Real Estate Group, TREC #0787987 | Real Broker, LLC, TREC #9003138. Texas law requires all license holders to provide the Information About Brokerage Services and Consumer Protection Notice. Dylan Hernandez NMLS #2681224 | One Real Mortgage NMLS #198414. Equal Housing Opportunity. Not affiliated with or endorsed by the U.S. Department of Veterans Affairs or any government agency. This is general information, not a commitment to lend or legal advice.