San Diego is one of my favorite markets to work in for VA loans — not because it’s easy (the prices are substantial), but because the VA program is genuinely well-suited to what San Diego buyers face. With Naval Base San Diego, MCAS Miramar, and Camp Pendleton all generating a constant flow of buyers and sellers, the VA purchase market here is sophisticated and move fast. I’ve helped veterans and active duty buyers in San Diego navigate zero-down purchases on $900,000+ homes, jumbo VA loans, and the specific documentation requirements the military lifestyle creates. I’m Michael DiVita — DRE #01818285 | NMLS #323700, DiVita Home Finance, Tiburon, CA. Call me at (800) 239-1103.
Why VA Loans Are the Best Mortgage for San Diego Military Buyers
San Diego home prices rank among the highest in California. The 2026 conforming loan limit for San Diego County is $1,006,250 — and VA loans can go well above that with no down payment required for eligible borrowers with full entitlement. That means a veteran can purchase a $1.1M+ San Diego home with zero down and no PMI. No other loan program offers that combination in this market.
Consider what zero down means at these price levels. A conventional buyer purchasing a $950,000 home in Chula Vista or Santee needs $190,000 for a 20% down payment. A VA-eligible buyer with full entitlement needs $0 down — and no monthly PMI on top. Over 10 years, that’s a meaningful financial advantage even after accounting for the VA funding fee.
VA Loan Benefits
- Zero down payment for eligible borrowers with full entitlement
- No private mortgage insurance (PMI) — saving hundreds per month
- Competitive interest rates — consistently among the lowest available
- Flexible qualifying guidelines — more forgiving on credit and DTI than conventional
- Assumable loan — a significant feature when rates are higher; a future buyer can take over your rate
- No prepayment penalty
Who Qualifies for a VA Loan in San Diego?
- Active duty service members (typically 90+ continuous days during wartime, 181 days peacetime)
- Veterans honorably discharged meeting minimum service requirements
- National Guard and Reserve members with qualifying service (6 years or activated under Title 10 or Title 32)
- Surviving spouses of veterans who died in service or from service-connected disability
To verify eligibility, you’ll need a Certificate of Eligibility (COE). I can pull this for you through the VA’s automated system in most cases — no separate paperwork required.
VA Loan Limits in San Diego County
Borrowers with full VA entitlement have no loan limit and can purchase above San Diego’s $1,006,250 conforming limit with zero down. The VA guarantees a portion of the loan — the lender’s exposure is limited, so they extend the full benefit regardless of purchase price.
Borrowers with reduced entitlement (typically because they have a prior VA loan still outstanding) may need to contribute a down payment on purchases above certain thresholds. I calculate this precisely for each client — it’s not as complicated as it sounds.
VA Funding Fee
Most VA borrowers pay a one-time funding fee that can be financed into the loan (so you pay nothing out of pocket for it). In 2026, the fee is 2.15% of the loan amount for first-time VA users with zero down, and 3.30% for subsequent use with zero down. Veterans with a service-connected disability rating of 10% or higher are exempt from the funding fee entirely — and this exemption applies retroactively if your rating is awarded after closing.
BAH and Active Duty Income
Basic Allowance for Housing (BAH) counts as qualifying income for VA loans. For active duty buyers stationed in San Diego, this can meaningfully increase your loan qualification. BAH for San Diego is among the highest in the country, reflecting the local cost of housing. I include BAH, BAS, and other allowances in your income calculation — the full military compensation picture.
Frequently Asked Questions
Can I use a VA loan above the San Diego conforming limit with zero down?
Yes. Borrowers with full VA entitlement have no loan limit and can purchase above $1,006,250 with zero down payment in San Diego County. The VA guarantees a portion of the loan to the lender regardless of the purchase price. This is one of the most powerful aspects of VA eligibility in a high-cost market like San Diego — you can buy a $1.3M home with no down payment if you qualify based on income and credit.
Is the VA funding fee required, and can it be waived?
Most VA borrowers pay a one-time funding fee that is financed into the loan — so there’s no out-of-pocket cost for it at closing. The fee ranges from 1.25%–3.30% depending on your down payment and whether this is a first or subsequent VA loan use. Veterans with a service-connected disability rating of 10% or higher are fully exempt from the funding fee. If your disability rating is pending or awarded after closing, you may be eligible for a refund of the fee you paid.
Does BAH count as income for VA loan qualification?
Yes. Basic Allowance for Housing (BAH) is treated as non-taxable income and counts toward your VA loan qualifying income. Because it’s non-taxable, lenders typically gross it up by 25% when calculating qualifying income — meaning $3,000/month in BAH may be treated as $3,750 in qualifying income. For active duty buyers in San Diego, including BAH in your income calculation significantly increases your purchasing power.
San Diego VA Loan Specialists
Free consultation. DiVita Home Finance — 40+ wholesale lenders.
DiVita Home Finance | NMLS #323700 | CA DRE #01818285
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DiVita Home Finance | Tiburon, CA | Licensed since 2007. DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
