VA Loans in California: Zero Down for Veterans

I’m Michael DiVita (DRE #01372066 | NMLS #241655), owner of DiVita Home Finance (DRE #01818285 | NMLS #323700) in Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. I’m known as a creative mortgage broker: when a bank says no, I find the lender and the loan structure that can say yes. Helping California’s veterans and military families use the benefit they earned is one of the most rewarding parts of this work. Call (800) 239-1103.

A VA loan lets eligible veterans, active-duty service members and certain surviving spouses buy a California home with zero down payment and no monthly mortgage insurance. With full entitlement there is no VA loan limit in 2026 — the maximum is whatever a lender approves. The one-time VA funding fee can be financed, and it’s waived entirely for veterans receiving VA disability compensation.

VA Loan Benefits

• Zero down payment at any price with full entitlement
• No monthly mortgage insurance — just a one-time funding fee, which many disabled veterans don’t pay at all
• Competitive rates — VA pricing is often better than conventional for the same borrower
• Flexible qualifying — VA uses a residual-income test, not just a debt-to-income ratio
• Limits on what you pay — VA caps certain closing costs you can be charged, and sellers can contribute up to 4% in concessions plus normal closing costs
• No prepayment penalty
• Assumable — a qualified buyer can take over your loan and rate when you sell
• Reusable — the benefit can be used again, and in some cases you can hold two VA loans at once

Who Is Eligible?

• Active duty: at least 90 continuous days of service.
• Veterans who served since August 2, 1990: generally 24 continuous months, or the full period you were called to active duty (at least 90 days). Earlier service eras have their own minimums, and a discharge for a service-connected disability can qualify with less time.
• National Guard and Reserve: 6 creditable years, or at least 90 days of non-training active-duty service under Title 10 (or qualifying Title 32 service).
• Surviving spouses: generally those receiving Dependency and Indemnity Compensation, or whose spouse is missing in action or a prisoner of war.

Your Certificate of Eligibility (COE) confirms eligibility and shows your entitlement. I can usually pull it electronically during pre-approval.

2026 VA Loan Limits in California

If you have full entitlement — you’ve never used the benefit, or a prior VA loan was paid off and your entitlement restored — there is no VA loan limit. If you still have entitlement tied up in an active VA loan, the county conforming limit is used to calculate how much you can borrow with zero down. My VA loan limits guide walks through the math with every California county.

Qualifying: Credit, Income and Residual Income

• Credit: the VA sets no minimum score. Most lenders want about 620; some go to 580. Higher scores get better pricing.
• Debt-to-income: VA’s benchmark is 41%, but it isn’t a hard cap. Approvals above 41% are common when residual income is strong.
• Residual income: the money left each month after the mortgage, debts, taxes and estimated living expenses. California is in VA’s highest-cost West region, so the required amount is higher here than in most states.
• Military income: base pay, BAH and BAS all count. Non-taxable allowances can often be “grossed up” for qualifying. Special and hazardous-duty pay can count when it’s documented as likely to continue.
• PCS moves: you can close on a new home with signed orders before you report, and with remaining entitlement you may be able to keep your prior home as a rental.

VA Funding Fee (Purchase Loans)

Cash-out refinance: 2.15% first use, 3.3% after. IRRRL: 0.5%. No funding fee if you receive VA compensation for a service-connected disability (or are eligible for it but receive retirement or active-duty pay instead), you’re a surviving spouse receiving DIC, you have a pre-discharge rating showing eligibility for compensation, or you’re an active-duty service member who has received a Purple Heart. If you’re rated after closing with an effective date before closing, you may be able to request a refund.

VA vs. Conventional vs. FHA

Property Rules: Condos, Multi-Units and the VA Appraisal

• Primary residence only. You must intend to live in the home.
• 2–4 units: you can buy up to a fourplex with zero down if you live in one unit; rent from the others can help you qualify.
• Condos must be in a VA-approved project. Many California complexes aren’t on the list, so I check before you write an offer.
• VA appraisal and Minimum Property Requirements: the appraiser confirms value and that the home is safe, sound and sanitary. It is not a home inspection — get one separately.

Making a VA Offer Competitive in California

• Get a fully underwritten pre-approval, not just a pre-qualification.
• Write a realistic but tight closing timeline.
• Work with an agent who can explain to the listing agent how VA appraisals and seller concessions actually work.
• If the appraisal comes in low, VA’s Tidewater process gives the appraiser a chance to consider additional sales before the value is final.

VA Refinance Options

• IRRRL (VA Streamline): lower your rate on an existing VA loan with limited documentation and usually no appraisal. You must have made at least six consecutive monthly payments and be at least 210 days past the first payment due date, and the new loan has to provide a net tangible benefit.
• VA cash-out: VA allows up to 100% of value, though many lenders cap at 90%. It can also refinance a non-VA loan into a VA loan.

VA Loan vs. CalVet Home Loan

California also runs its own veterans’ program through CalVet. It’s structured as a contract of purchase — CalVet holds title until the loan is paid off — and it includes CalVet’s disaster and hazard coverage. It can make sense in specific situations (for example, some rural properties), but most of my clients are better served by a standard VA loan: you hold title from day one, sellers know the process and the rate competition is strong. I’m happy to compare both.

California Property Tax Exemption for Disabled Veterans

Veterans rated 100% disabled (or paid at the 100% rate due to unemployability), and qualifying unmarried surviving spouses, can reduce the assessed value of their home for property taxes. For 2026, the basic exemption is $180,671 and the low-income exemption is $271,009 (for household income up to $81,131). You apply through your county assessor.

Where California Military Families Buy

Prices range from under $500,000 in parts of the Central Valley and High Desert to well over $2 million in Coronado, the South Bay and Marin. With full entitlement, the VA benefit works across that entire range. Many veterans also buy in Marin and the North Bay — Novato, with its Hamilton Field history, and San Rafael are common choices — where a VA loan above $1.25 million can replace a 20%-down jumbo.

Frequently Asked Questions

Can I buy a home in California with no down payment using a VA loan?

Yes. With full entitlement you can buy at any price with zero down, as long as you qualify on income, credit and residual income. With reduced entitlement, your county’s conforming limit determines how much you can borrow with zero down.

What credit score do I need for a VA loan?

The VA doesn’t set a minimum. Most lenders look for about 620, and some approve down to 580. As a broker I can shop lenders whose guidelines fit your profile.

Is the VA funding fee waived for disabled veterans?

Yes, if you receive VA compensation for a service-connected disability, or are eligible for it but receive retirement or active-duty pay instead. It’s also waived for surviving spouses receiving DIC, service members with a pre-discharge rating and active-duty Purple Heart recipients.

Can I use a VA loan more than once?

Yes. Entitlement can be restored after you sell and pay off a VA loan, or through a one-time restoration if you paid it off and kept the home. You may also be able to hold two VA loans at once using remaining entitlement.

Can I buy a duplex or fourplex with a VA loan?

Yes, up to four units with zero down, as long as you live in one of them. Projected rent from the other units can help you qualify.

Can I use a VA loan to buy a condo?

Yes, if the condo project is VA-approved. Many California projects aren’t on the list, so check approval before making an offer.

How long does a VA loan take to close?

Typically about 30 to 45 days, depending largely on the VA appraisal schedule in your area. A fully underwritten pre-approval shortens the time once you’re in contract.