VA Loans in California – Buy With 0% Down for Veterans
Talk to any California veteran about buying a house. First thing they say: “I can’t afford the down payment.”
Then I tell them about VA loans. Zero down. No mortgage insurance. Rates better than what civilians get.
They look at me like I’m lying.
I’m not. This is real. You earned this through service. Time to use it.
Been helping California veterans since ‘92. Desert Storm vets. Iraq vets. Afghanistan vets. Reservists. Active duty. All of them asked: “What’s the catch?”
No catch. Just your benefit. The one you earned.
California median home price? $905,680. Regular buyers need $180K down for conventional financing. Veterans? Need exactly zero dollars. That’s the difference between buying this year or waiting until 2030.
Why VA loans dominate:
- $0 down - That $180K you don’t have? Don’t need it. Keep savings for furniture, emergencies, life
- No PMI ever - Conventional buyers pay $200-$500/month in insurance. You pay zero. Forever
- Better rates - Lenders fight for VA business. Government backing means lower risk, lower rates for you
- Pay off early - No prepayment penalty. Make extra payments. Pay it off in 15 years instead of 30. Nobody punishes you
Got an active duty DD-214? Using Reserves or Guard? Retired veteran? Surviving spouse? Doesn’t matter. This benefit’s yours.
First home purchase? Works. Refinancing existing mortgage? Works. VA loans make California’s insane housing market actually affordable for people who served.
Who Qualifies for VA Loans?
Need a Certificate of Eligibility (COE) from VA. Takes 3 days usually. Sometimes less. We handle the paperwork constantly, know the process cold.
Service requirements:
- Active duty - 90 days continuous service. That’s it
- Veterans - 90 days wartime service. Or 181 days peacetime
- Guard/Reserves - 6 years of service required
- Surviving spouses - If veteran died in service or from service-connected disability
Discharge status matters. General discharge or better? You’re qualified. Honorable? Qualified. Other than honorable? Maybe, depends on circumstances. Dishonorable? That’s the only automatic disqualification.
Had a client last year. Got other than honorable discharge in 2003. Twenty years later, VA reviewed his case. Upgraded to general discharge. Suddenly qualified for VA loan. Bought a $685K house in Sacramento with zero down. Sometimes worth appealing old discharge decisions.
Credit requirements: Most lenders want 580+ credit. VA itself doesn’t set minimums. But lenders do. Need to prove you can handle payments.
Credit issues? Not automatic disqualification. Approved plenty of veterans with bankruptcies. Foreclosures. Collections. Divorces destroy credit fast. Deployments make it hard to manage bills. Medical debt piles up. VA underwriting understands military life better than conventional underwriters do.
Army vet came to me last year. 612 credit. Bankruptcy from 2020. Medical bills from deployment injury. Thought he was done. Got him approved at $580K in Riverside. Closed in 38 days. Not impossible. Just need the right lender who actually works with veterans.
Income requirements: No income limits on VA loans. Rich? Qualified. Middle class? Qualified. Just need enough income to cover the mortgage payment.
VA uses “residual income” instead of just debt-to-income ratios. Fancy term for “money left over after bills.” Makes sure you have enough to actually live after paying mortgage. Smarter approach than conventional lending uses.
2025 VA Loan Limits in California
No limits with full entitlement. Want $2 million home in San Francisco? Buy it. $1.5 million in LA? Go ahead. $3 million in Malibu? If you qualify income-wise, VA doesn’t stop you.
Already used your VA loan and still own that property? You’ve got partial entitlement remaining. Then limits apply:
- High-cost counties (SF, LA, San Diego, Orange, Santa Clara, San Mateo, Marin): $1,209,750
- Standard counties (most of inland California): $806,500
Here’s what most veterans don’t know. You can use VA benefits multiple times. Pay off first VA loan completely? Full entitlement returns. Can even hold two VA loans simultaneously if you’ve got enough entitlement remaining.
Navy vet last year bought investment property in San Diego using VA in 2019. Still owned it. Wanted to buy primary residence in Orange County. Had partial entitlement left. Bought $950K house with zero down using remaining entitlement. Both properties financed with VA. Perfectly legal.
Got partial entitlement and want something above limits? Put cash down to cover the difference. Still skip PMI though. That never applies to VA loans regardless of down payment amount.
California counties with high-cost limits: Every major metro qualifies - LA, SF, San Diego, Orange County, San Mateo, Santa Clara, Marin, Alameda, Ventura. Basically anywhere expensive. Which in California means basically everywhere.
VA Funding Fee
One cost that surprises people. VA funding fee. Keeps the program running without using taxpayer money. Fair trade-off for zero down payment and no PMI benefits.
How much you pay:
- First use, nothing down: 2.15% of loan amount
- First use, 5% down: 1.25% of loan amount
- First use, 10%+ down: 1.25% of loan amount
- Second use: 3.3% of loan amount
- Reserves/Guard: Add 0.25% to whatever rate above applies
$800K loan? That’s $17,200 funding fee for first-time users. Yeah, sounds like a ton of money.
But here’s the key part. It rolls into your loan. Don’t pay it at closing. Gets added to your loan balance. Pay it off over 30 years like everything else. Most people never even notice it after closing.
Who skips the fee entirely:
- Any service-connected disability rating. Even 10% qualifies. 100%? Qualifies. Any percentage works
- Purple Heart recipients. Automatic exemption
- Surviving spouses receiving DIC (Dependency and Indemnity Compensation) benefits
About 30% of VA borrowers exempt from funding fee. That’s nearly 1 in 3 veterans.
Here’s critical advice. If you qualify for disability rating but haven’t filed yet? File before getting your loan. Could save $15K-$20K depending on loan size. Air Force vet last year had tinnitus and knee problems from service. Never filed for disability. Pushed him to file first. Got 20% rating. Saved $16,800 on his $780K loan. Six months of paperwork saved him nearly $17K.
Funding fee stings. Not gonna lie about that. But compare it to PMI on conventional loans. That’s $350-$450/month for 10+ years. Total cost: $42K-$54K. Suddenly 2.15% one-time fee doesn’t seem unreasonable. Especially when it’s rolled into your loan and you’re not paying cash at closing.
California Veteran Benefits
Federal VA loan is just the start. California stacks additional benefits on top.
CalVet Home Loans: State-run program. Can work alongside federal VA loans. Sometimes offers better rates than federal program. Sometimes worse. Worth comparing. Different underwriting. Different property requirements. Gives you options.
Property tax exemption: Big one here. Disabled vets with 100% rating get full exemption on primary residence. Applies to first $217,409 of assessed value. Some counties go higher. Saves $2,000-$4,000 yearly depending on county tax rates.
100% unemployable due to service? Same exemption applies even if not rated exactly 100%. Had a client in Contra Costa County. 90% rating but unemployable status. Full property tax exemption on his $640K house. Saves $4,200 every single year. That’s $126K over 30 years. Real money.
CalVet Fee Waiver: California waives recording fees for veterans. Typical savings $200-$300 at closing. Small compared to other benefits but every dollar counts.
County veteran service offices: Every California county operates one. Free service. They help with VA claims. Benefits applications. Disability ratings. Appeals. Everything. Use them. They know the system better than anyone. Got one client from 60% to 80% rating using county VSO help. Made him eligible for better benefits and funding fee exemption.
Why Veterans Choose Us
Over 1,000 California veterans since ‘92. Know the forms. Know the timelines. Know the appraisal requirements. Know the specific VA underwriting guidelines that trip up other lenders.
Most importantly? Know how to handle complicated income situations.
Active duty with deployment orders coming? Rush your approval before you leave. Reserves with sporadic income? Document it properly for underwriters. Service-connected disability but haven’t filed rating yet? Walk you through filing first because it saves thousands in funding fees.
Combat pay doesn’t always count for income. But sometimes it does. BAH usually counts. Sometimes doesn’t. VA disability income? Counts if we document it correctly. Gets complicated fast. We’ve done this over 1,000 times. Know the workarounds.
28,450 VA loans closed in California last year. Average loan size $445,250. Program’s busier than ever. Only way most veterans can afford California’s insane real estate market. $900K median home price? Need zero down? VA loan’s your answer.
What Our California Veterans Say
“Working with A Good Lender was the best decision I made when buying my first home. As a veteran, I didn’t know much about VA loans, but they walked me through every step. Got my pre-approval in 24 hours, closed on my Oakland home in 30 days with zero down payment. Saved over $400/month compared to conventional loans I was quoted elsewhere.”
— Michael R., U.S. Army Veteran ⭐⭐⭐⭐⭐ Verified Google Review
Buying in expensive coastal markets? VA works. More affordable inland areas? VA works there too. Looking at rural properties? Check USDA loans for rural California. Need more than VA limits? Jumbo loans can layer with VA benefits for down payment portion.
Call (510) 589-4096 to discuss your specific VA loan situation. Let’s get you approved and into your California home with the benefits you earned through service.