VA loans are the best mortgage deal in America. Zero down. No PMI. Lower rates than conventional. If you've served, this is the program you should use.
I'm Bill McCoy, a California mortgage broker (CA DRE #01212512). I've helped dozens of veterans buy homes with VA loans, and I'll break down what you need to know.
What Is a VA Loan?
A VA loan is a government-backed mortgage for veterans, active-duty service members, and some surviving spouses. The Department of Veterans Affairs guarantees a portion of the loan, which lets lenders offer terms you won't find anywhere else.
The headline benefits:
- $0 down payment on homes up to your county's loan limit
- No private mortgage insurance (PMI) -- ever
- Lower interest rates -- typically 0.25-0.5% below conventional
- Flexible credit requirements -- no VA-mandated minimum score
- Capped closing costs -- the VA restricts what lenders can charge
- No prepayment penalty
Who Qualifies?
The short version: veterans with 90+ days of wartime service, 181+ days of peacetime service, or 6 years in the Guard/Reserves. Active-duty members qualify after 90 days. Some surviving spouses are eligible too.
You'll need a Certificate of Eligibility (COE) to prove your status. Your lender can pull it electronically in minutes -- don't wait weeks for a mailed copy.
For the full breakdown of service requirements and how to get your COE, read VA Loan Eligibility: Who Qualifies and How to Get Your COE.
VA Loans vs. Conventional: The Numbers
Here's what the VA advantage looks like on an $800,000 home:
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CA DRE #01212512 | Free, no-obligation quote
| VA Loan | Conventional (5% down) | |
|---|---|---|
| Down payment | $0 | $40,000 |
| PMI | None | ~$400/month |
| Interest rate | 6.0% | 6.25% |
| Upfront fee | 2.15% funding fee | None |
Bottom line: The VA loan saves you $40,000 upfront and roughly $4,800/year in PMI. That $400/month stays in your pocket instead of going to an insurance company.
On a $600,000 loan, skipping PMI saves you $30,000-$60,000 over 10 years.
California VA Loan Limits (2026)
VA loans technically have no maximum amount. But if you borrow above your county's limit, you'll need a partial down payment on the overage.
Standard limit (most counties): $832,750
High-cost counties: $1,249,125 -- includes LA, Orange, San Diego, San Francisco, Santa Clara, and several others.
A veteran buying a $1,000,000 home in LA County? Zero down. That's hard to beat.
What Can You Buy?
The home must be your primary residence. No investment properties or vacation homes.
Eligible property types include single-family homes, VA-approved condos, townhomes, manufactured homes on permanent foundations, and multi-family properties (2-4 units) if you live in one unit.
The VA appraiser will check that the home is safe, structurally sound, and has functional systems. They're pickier than conventional appraisers -- if something doesn't pass, the seller has to fix it before closing.
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VA Loan Eligibility: Who Qualifies and How to Get Your COE
Find out if you qualify for a VA loan in California. Service requirements for veterans, active duty, Guard/Reserves, and surviving spouses, plus how to get your COE.
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VA Loan Costs: Funding Fee, Closing Costs, and What to Expect
What VA loans actually cost in California. Funding fee rates, allowed and prohibited closing costs, seller concessions, and how to close with $0 out of pocket.
What's Next?
This is Part 1 of a 4-part series on VA loans in California. Here's where to go from here:
- VA Loan Eligibility: Who Qualifies and How to Get Your COE -- service requirements, COE process, and common questions
- VA Loan Costs: Funding Fee, Closing Costs, and What to Expect -- what you'll actually pay at closing
- VA Loan Types: Purchase, Refinance, IRRRL, and Cash-Out -- every VA loan option explained
Ready to get started? Get your free VA loan quote or use our purchase calculator to see what you can afford.
Better Offers Inc | CA DRE #01212512
VA-Approved Lender | Serving California Veterans Since 2011