The September Change Most Veterans Never Heard About
On September 14, 2026, Ginnie Mae issued new guidance on how construction-to-permanent loans get pooled into mortgage-backed securities. It has a boring name, APM 26-10, and it sounds like back-office paperwork. But it has already changed what is available to you.
Here is what happened next. HousingWire reported that eLEND paused a brand-new VA renovation loan because of the change, and the company does not expect to relaunch it until early 2027. One of the biggest VA construction lenders has also pulled back. The loan product you want did not go away. The lenders offering it are thinning out.
Why Lenders Were Already Looking for the Exit
Construction loans are more work than purchase loans. Builder approvals, draw inspections, phased funding, longer timelines, more ways for things to stall. Most lenders make more money with less effort on standard purchase loans, so construction lending was already a niche. When the rules change behind the scenes, the lenders who were barely in it take it as their reason to leave.
What This Means for Your Build
The VA home loan benefit itself did not change. The VA still backs construction lending the same way it always has. What changed is the bench. You are now shopping in a smaller market, and that makes your choice of lender the whole game.
A lender who closes two construction loans a year will not fight through a draw inspection hiccup the way a lender who closes them every week will. The difference between a smooth build and a stalled one is usually not your credit or your builder. It is whether your lender does this every day or once in a while.
How to Vet a VA Construction Lender
Ask one question first: how many VA construction loans did you close in the last 12 months? If they hesitate, keep looking. Then ask how builder approval works, who handles the draw inspections, and what happens to your rate if the build runs long. Get your answers before you fall in love with a floor plan, and get pre-approved before you sit down with a builder so you know your real buying power.
The veterans who close clean builds in this market are not the ones with the best credit. They are the ones with a lender who actually does this.
Frequently Asked Questions
Did the VA stop allowing construction loans? No. The VA program did not change. Ginnie Mae changed its securitization and pooling rules for construction loans (APM 26-10, September 2026), which led some lenders to pause or scale back their construction programs. The benefit itself is intact.
Can I still get a VA one-time-close loan in 2026? Yes. Lenders who specialize in VA construction are still closing them. Ask any lender how many VA construction loans they closed in the last year before you commit to one.
Why did my lender say they no longer offer VA construction loans? Lenders choose which products to offer, and VA eligibility does not force a lender to offer every loan type. The recent pooling rule changes gave several lenders a reason to exit the space.
What should I ask a VA construction lender before applying? How many VA construction loans they closed recently, how builder approval works, who handles draw inspections, and what happens if the build timeline slips past your rate lock.
Get Pre-Approved: Start your application. Book a Call: Schedule time with Michael.
Michael Easton, NMLS #1964732, Powered by Edge Home Finance NMLS #891464
Frequently Asked Questions
Did the VA stop allowing construction loans?
No. The VA program did not change. Ginnie Mae changed its securitization and pooling rules for construction loans (APM 26-10, September 2026), which led some lenders to pause or scale back their construction programs. The benefit itself is intact.
Can I still get a VA one-time-close loan in 2026?
Yes. Lenders who specialize in VA construction are still closing them. Ask any lender how many VA construction loans they closed in the last year before you commit to one.
Why did my lender say they no longer offer VA construction loans?
Lenders choose which products to offer, and VA eligibility does not force a lender to offer every loan type. The recent pooling rule changes gave several lenders a reason to exit the space.
What should I ask a VA construction lender before applying?
How many VA construction loans they closed recently, how builder approval works, who handles draw inspections, and what happens if the build timeline slips past your rate lock.
Know your numbers before you shop.
Get pre-approved or book a call and let's run your actual payment.
Get Pre-Approved Book a Call