Globella Buyers Realty > Resources > Buying with a VA Loan

Buying a Home in San Diego with a VA Loan

Photo Credit: Flickr: Dale Frost 

San Diego is the proud home to a large military community, and I am honored to be able to help many military families buy homes in San Diego.

One of the first questions that first-time military homebuyers ask me is: Should I use a VA loan to buy a home in San Diego? There is (sometimes) a bit of stigma surrounding VA loans, but they are often just as good as (or better than) conventional loans. The VA guarantees up to a quarter of the loan amount, making VA loans a safe investment in the eyes of most lenders.

The process of buying a home with a VA loan is not substantially different than buying a home with a conventional loan or FHA loan UNLESS the home needs a lot of work... If the your VA appraiser deems the home to be "unlivable", they may require certain repairs that a seller is unwilling to complete. Your Exclusive Buyer Agent can help you determine whether or not you can obtain VA financing on any home you're interested in. 



Four Benefits of Buying a Home with a VA Loan:


#1. You don’t need a down payment. 

This is the main draw of a VA loan. Most conventional loans require a down payment of at least 5%, while FHA loans require at least 3.5%. With a VA loan, though, eligible veterans and active military members can purchase a home without a down payment. Every county has a maximum amount availabable. This is known as the 100% guaranty limit or 100% financing limit. In more expensive areas, the 100% guaranty limit is higher. The VA 100% financing limits do change occasionally, so you should always check with your local VA mortgage professional to get the most up-to-date numbers.

VA loans can also go over this limit, but if they do, the VA will only allow you to finance 75% of the property value/purchase price that exceeds the 100% limit. (Learn more about VA loan limits.)

#2. You don’t need to purchase mortgage insurance.

Borrowers with conventional loans or FHA loans who can’t put down 20% will typically need to purchase private mortgage insurance (PMI). This can add hundreds of dollars to your monthly payment. VA loans don’t require any type of mortgage insurance, regardless of how much (if any) you put down. They do come, however, with an extra upfront fee (the VA Funding Fee) that comes to about 2% of the loan amount. This fee helps finance the VA program (and helps offset some of the lender’s risk for the low-or-no down payment) and can be rolled into the loan amount. Veterans with service-connected disabilities usually don’t have to pay this fee at all.


#3. VA loans have more lenient requirements.

Most conventional home loans require a credit score of at least around 660, but VA buyers can often have a credit score up to 100 points lower and still qualify for a VA loan. In addition, borrowers with a history of bankruptcy and foreclosure can often still qualify for a VA loan, even if that foreclosure was on a VA loan-secured property. VA loans also don’t have any type of prepayment penalty; you can make extra payments anytime you want, which can save you lots in interest over the years. Finally, VA loans are reusable - as long as you pay off each loan, you can typically use your VA loan benefit multiple times.


#4. VA loans have fewer closing costs.

VA loans limit the amount that borrowers can pay in closing costs and restricts the types of closing costs that VA homebuyers can pay. The non-allowable closing costs under a VA loan (meaning the closing costs that the buyer cannot pay) typically include lender document fees, notary fees, broker fees, transaction coordinator fees, and termite inspection fees. The VA also does not place a limit on how much of the closing costs can be covered by the seller (which is negotiable between you and the seller when you write an offer). 

Of course, every homebuyer’s situation is different, and there are times when a VA loan is not the best option. If you can swing the standard 20% down payment, a conventional loan may be a better fit for you because you can avoid the VA Funding Fee. VA loans are also intended for primary residences only, meaning you cannot use them to purchase an investment property or vacation home. VA loans also place limits on co-borrowers. If you’re planning to buy a home with someone other than your spouse or another veteran with a VA Loan entitlement who will live in the home with you, you may have to pay a down payment. And if you’re buying a condo or townhome, the VA is going to restrict your options only to complexes that are specially approved by the VA.

For many service members, however, VA loans are a great way to become a San Diego homeowner. If you think (or know) you’re eligible for a VA loan and are interested in purchasing a property in San Diego County, contact me today to request your Free VA Buyer Strategy Session - and thank you for your service!

Also Read: Relocating to San Diego? ==> See My Helpful Links

Also Read: What is a Buyer Strategy Session?

Also Read: 5 Reasons to Hire an Exclusive Buyer's Agent

Also Read: How Does a Buyer's Agent Get Paid?

Globella Buyers Realty > Resources > Buying a Home in San Diego with a VA Loan

Justin Gramm, Broker
Globella Buyers Realty
Ph: 858.437.2662
CA 92102 US
CA DRE License # 01714813
What is an EBA? When to Hire an Agent Buying a Home in 2022 How My Schedule Works Buyer Strategy Session How I Work When to Buy? Part 1 Globella Questionnaire About Globella Why Hire Justin? Buyer Representation Helpful Buyer Links How I Get Paid Buyer's To-Do List Location = Lifestyle First-Time Homebuyers About Justin Gramm VIDEO: Meet Justin Luxury Buyers 10 Best School Districts How to Write an Offer Paperwork North Cty vs. San Diego What is Dual Agency? Testimonials/Reviews Relocating to San Diego New Construction About Buyer Agency Dog-Friendly Buildings The Informed Buyer Paperwork Explained Home Buying FAQ Help for Luxury Buyers Buying a Condo The Dual Agent Trap Retiring in San Diego 3 Investing Strategies The Globella Difference 5 Reasons to Rent Buying Foreclosures 5 Reasons to Buy Agency 101 Accredited Agent (ABR) 1031 Exchange Tips Privacy Policy Avoid Moving Twice Agency Disclosure Preapproval Questions Choosing a Lender Negotiation Expert Agent Ethics Buyer Agent Interview Foreclosures Buying a New Home Hiring an Inspector Top 1% of Realtors Second Home Expert Negotiating Your Loan Avoiding Wire Fraud Termites! Buyer Services Free Buyer Reports Get a Home Warranty Hot vs. Cold Market Hazard Insurance Tips Free Investor Reports Checking HOA Health Earthquake Insurance Condo Litigation SD Weather Tips Property Taxes Cost of Granny Flat Vesting as LLC or Trust Buying with a VA Loan Investor Services Buyer Resources Code of Ethics About the Name Contractor List Home Investigation Tips Moving Checklist The Grande: Downtown Condos Seven on Kettner Treo Beech Tower Citymark at Cortez Hill Park View Gaslamp City Square Watermark 235 on Market Atria Brickyard Columbia Place Harbor Club Island Lofts Angove Lofts Jacaranda Studios Rowhomes on F Bella Via Columbia & Fir Lofts Date Street Townhomes Ecco Lofts Finestra Lofts Hawthorn Place Kettner Rowhomes Lusso Lofts The State The Waterfront Victorian House Aperture Preparing a Short Sale Offer How A Short Sale Lender Analyzes an Offer Short Sale Lenders Approval Options Different Short Sale Lenders Act Differently Loss Mitigation vs. Foreclosure Departments Short Sale Defined The Ideal Short Sale Seller Why Do Banks Even Consider Short Sales? Some Listed Short Sales Are Not Closeable La Jolla Del Mar Point Loma Rancho Santa Fe Pacific Beach Coronado Downtown San Diego Contact Us Communities Buying Short Sales FAQ International Buyers First-Time Buyers Vacation-Home Buyers Move-Up Buyers Downsizing Buyers 1031 Exchange Buyers Luxury San Diego Real Estate Fair Housing Investment Buyers San Diego Photos New-Home Buyers Testimonial Chuck Smith Testimonial Downtown Steve What's Exciting! How We Work Short Sale Testimonial Investing Buying a Home Footer Links Local Restaurant Reviews SD Restaurant Reviews Things to Do in SD SD Eatery Reviews Paperwork How We Work About Our Name How We Get Paid Before Writing Offer Before You Write an Offer Before Writing an Offer Del Mar Buyers Agent 92101 Buyers Agent Loan Doc Signing Tips Testimonial - Samantha Z. How I Work Review from Melanie & Michael Review from Erica M. Buying in 2014 Spring Home and Garden Show 2014 at Del Mar Fairgrounds Review from Daniel E. Review from Steve and Chi Buying in 2015 Spring-Home-Garden-Show-San-Diego-Del-Mar-Fairgrounds Buying a Home in 2016 Review from Michael I. Review from John and Wendy Review from Allison H. Review from Frank S. Broken-Landing-Page San-Diego-Spring-Home-and-Garden-Show-2016 Your Ivy at Carmel Valley Exclusive Buyer's Agent Your Sea Cliff Exclusive Buyers Agent Your Avery Pointe at Veridian Exclusive Buyer's Agent Your Lanai in Carlsbad Exclusive Buyer's Agent Your Pacific Gate San Diego Exclusive Buyers Agent Your SummerHouse Carlsbad Exclusive Buyers Agent 2016 San Diego Market Your-Park-at-Bankers-Hill-Exclusive-Buyers-Agent Your Aura Exclusive Buyers Agent San Diego Buyer Agent Review from Mary R. San Diego Buyer Agent Review from Dan B. Your Estates at Del Sur Exclusive Buyers Agent San Diego Buyer Agent Review from Ken and Cindy Three Reasons to Buy a Home in Hillcrest, San Diego Three Reasons to Buy in Bankers Hill San Diego Your Elms at Carmel Valley Exclusive Buyers Agent When to Buy? Part 2 San Diego Buyers Agent Review from Kevin C. Three Reasons to Buy in Encinitas San Diego San Diego Buyer Agent Review from Natacha S. Is Fall a Good Time to Buy a New Home? Your Elms at Carmel Valley Exclusive Buyers Agent Your Canterra Exclusive Buyers Agent Three Reasons to Live in Normal Heights, San Diego San Diego Buyer Agent Review from Renaud P. Buying a Home in 2018 Your Estancia at Cielo Exclusive Buyers Agent Your Upper Cielo Exclusive Buyers Agent Three Reasons to Buy a Home in La Mesa Your-Cottages-at-St-Cloud-Exclusive-Buyers-Agent Your Harmony Grove Exclusive Buyer Agent Three Reasons to Live in Kensington, San Diego 8 Home Maintenance Tips for Spring Federal Interest Rate Hike and San Diego Homebuyers Review from Stewart H. Review from Roland M. Review from Duane and Nancy Review from Natacha S. Review from Shandi and Michael Your Savina Exclusive Buyers Agent Your Escaya Exclusive Buyers Agent Your Terraces at Robinson Ranch Exclusive Buyers Agent Your Signature Exclusive Buyers Agent Your Garrison Landing Exclusive Buyers Agent Review-from-Joseph-C Review from Kara S. Review from Martin and Jackie 2018 Market Update Three Reasons to Live in South Park San Diego Review-from-Adam-W. New Granny Flat Law in San Diego Why Buy at Civita Review- from-Randy-F. Review-from-Oline-C Buyer's Privacy Rights Review from Alex M. Three Reasons to Live in Tierrasanta Review from Greg C. Review from Kenjie S. Review from L.T. Review from Mike L. Sandicor Statistics Videos Market Statistics Contact VIP Home Finder Request a Buyer Strategy Session / Interview Welcome Subscribe Site Map