The New ROAD to Housing ACT
Can I Buy a House Using Only VA Disability Income in 2026? (The New ROAD Act Rules)
If you’ve been following the news lately, you know that 2026 has been a massive year for housing legislation. For our veteran community, the noise can be a bit overwhelming. You’re hearing about "DTI math," "residual income," and a major piece of federal legislation called the ROAD to Housing Act. But the question I’m getting most often in my office right now is simple: "Andrew, can I actually buy a house in Phoenix using nothing but my VA disability income?"
The short answer is yes. But the "how" has changed significantly thanks to the Disabled Veterans Housing Support Act, signed into law in January 2026, and the broader provisions of the ROAD Act.
Let’s break down exactly what this means for your wallet, your qualification power, and why the Phoenix market is currently sitting in a "sweet spot" for heroes ready to make a move.
The Game Changer: The ROAD Act and DTI Math
For years, veterans relying solely on disability income faced a mathematical uphill battle. Lenders would look at your Debt-to-Income (DTI) ratio, and even though your disability income is tax-free (which helps), it often wasn't enough to offset the rising costs of housing in a high-interest environment.
Enter the ROAD (Regularizing Operations for Affordable Development) to Housing Act of 2026.
One of the most revolutionary components of this act, paired with the Housing Support Act, is the mandate to exclude service-connected disability compensation from certain income eligibility math that previously disqualified veterans from "affordable" tier financing. Essentially, the government is finally recognizing that disability pay shouldn't be "counted against you" when calculating your ability to manage a mortgage, provided your residual income is healthy.
By excluding certain disability compensations from the "limiting" side of the DTI math, veterans are seeing their "Qualification Power" jump significantly. In 2026, we are seeing veterans qualify for $50,000 to $75,000 more in home value than they did just twelve months ago, simply because of how the government now views that income.
Understanding "Residual Income" in 2026
While the DTI rules have loosened, the VA still cares deeply about Residual Income. If you’re planning to buy using only disability pay, this is the number that matters most.
Residual income is the money you have left over every month after paying all your bills, including your new mortgage, taxes, insurance, and estimated maintenance costs. The VA wants to ensure that after you pay for your house, you still have enough to buy groceries, gas, and clothes for the kids.
In the Phoenix metro area, these requirements vary based on family size. However, because your disability income is non-taxable, lenders "gross up" that income: usually by about 25%: to give you a fair comparison against someone earning a taxable salary. This "grossing up" combined with the new ROAD Act exclusions means that even if your "on-paper" income looks modest, your "buying power" is actually quite robust.
If you’re curious about where your specific numbers land, I highly recommend you Book a Strategy Session with us. We can run the math through our 2026 AI-driven qualification tools to see exactly where you stand.
Why the Phoenix Market is "Hero-Friendly" Right Now
The timing of these legislative wins couldn't be better. As of late March 2026, the Phoenix real estate market has officially hit "Equilibrium Mode." We are currently seeing a 4.5-month supply of inventory: the highest we’ve seen in years.
What does this mean for a veteran buyer?
More Choice: You aren't fighting 20 other offers for a 1,200-square-foot bungalow in Glendale.
Seller Concessions: Sellers are once again willing to pay for your closing costs or buy down your interest rate.
Price Reductions: We are seeing a significant wave of price cuts across the Valley, particularly in the West Valley.
When you combine a market that is cooling with federal laws that make it easier to qualify, you have a recipe for success. You can check out our Glendale AZ Housing Market Update to see how these trends are playing out locally.
The Rewarding Heroes Advantage: Saving You Money
At Rewarding Heroes, we don't just help you find a house; we help you keep your equity. We know that for many disabled veterans, every dollar counts. That’s why we’ve stuck to a simple, transparent pricing model that blows the traditional 3% commission out of the water.
Sales up to $600,000: We charge a flat fee of just $8,000.
Sales over $600,000: We charge a commission of 1.5%.
Think about that. On a $500,000 home, a traditional 3% commission would cost $15,000. By working with us, you’re keeping $7,000 in your pocket. That’s money for new furniture, a fence for the dog, or simply a larger emergency fund.
The "Hero’s Double Play" Reimbursement Credit
If you are looking to sell your current place and move into a new build: which many veterans prefer because of the VA’s strict inspection requirements: we have something even better.
When you bundle your sale and a new construction purchase with us, you qualify for the Reimbursement Credit. You can choose between:
A 3-phase professional home inspection for your new build (crucial for catching builder mistakes!).
A free local move (valued up to $2,500).
We want to take the "sting" out of moving. You’ve served us; now it’s our turn to serve you. You can find more details on these benefits and more in our Hero Resources Page.
Leveraging AI to Find the Perfect Home
The world has changed, and so has real estate marketing. At Clearly Sold, we use an AI marketing strategy to find "off-market" opportunities for our heroes. Sometimes the perfect home isn't even on the MLS yet. Our systems scan for sellers who need to move quickly, allowing us to negotiate better terms for you before the rest of the world even knows the house is for sale.
If you’re relying on disability income, finding a home that is "move-in ready" is vital. VA appraisers can be tough on things like peeling paint or cracked windows. Our AI tools help us filter for homes that are most likely to pass a VA appraisal with flying colors, saving you time and heartbreak.
FAQ: Buying with Disability Income in 2026
Q: Do I need a credit score to buy with VA disability income?
A: While the VA itself doesn't have a minimum credit score, most lenders do. In 2026, we are seeing many lenders work with scores as low as 580 or 600, especially with the new ROAD Act protections in place.
Q: Can I use my VA loan more than once?
A: Absolutely. As long as you have remaining entitlement, you can use your VA loan again and again.
Q: Does the $8,000 flat fee apply to new construction?
A: For new construction, the builder typically sets the compensation. However, our Hero’s Double Play credit still applies if you sell your resale home with us first!
Q: What if I have other debts, like a car loan?
A: This is where the 2026 ROAD Act rules help. Because your disability income is now treated more favorably in DTI math, having a car payment or student loans doesn't "tank" your qualification as easily as it used to.
Final Thoughts
The landscape for veteran homeownership has never looked better than it does right now in March 2026. Between the legislative wins of the ROAD Act and the cooling Phoenix market, your disability income goes further today than it did five years ago.
Don't let the technical jargon of the mortgage world stop you from building wealth through real estate. Whether you're looking for a quiet spot in Surprise or a family home in Gilbert, we have the tools, the technology, and the heart to get you there.
It's Your Move
Ready to see how much home your disability income can actually buy in today's market? Let’s put our AI tools to work for you.
Give us a call at 623-400-5957 or email [email protected] to schedule your free consultation.
You can also schedule a call directly here. Let’s get you home.
Andrew Texidor, Realtor and Founder of Rewarding Heroes and Clearly Sold brokered by HomeSmart is a Certified AI Agent.
