June 1, 2021

Frequently Asked Questions About San Diego VA Loans

Va Loan in San Diego California

Interested in applying for a VA mortgage in San Diego? You probably have a lot of questions about VA loans. Here are some answers to some frequently asked questions.

San Diego VA Loans FAQs

Q: What are the benefits of applying for a VA mortgage?

A: If you are eligible for a VA mortgage, you can purchase a home in San Diego or elsewhere in CA with zero down.

With other types of loans, when you put less than 20% down, you have to pay for insurance, but there is no PMI requirement with a VA mortgage.

Additional advantages include easy credit qualification, capped closing costs and affordable interest rates.

Q: I am still serving. Do I qualify for a VA loan?

A: You might. If you meet the surface requirement, then the answer is yes.

Q: I served in the Reserve or National Guard. Do I qualify for a VA mortgage?

A: You are potentially qualify for a VA loan if you served in the Reserve or National Guard. Once again, you will need to meet these service requirement to be eligible.

Q: What is the service requirement for a VA loan in California?

A: The service requirement for a VA mortgage usually is 90 days of active-duty wartime service or 181 days of continuous active-duty peacetime service, but it may be different depending on when you served. We can look this information up for you.

Q: What is my COE and how do I get it?

A: COE stands for “Certificate of Eligibility.” It is the document you use to prove you are eligible for a VA mortgage. You need to obtain it from the Department of Veterans Affairs.

For veterans as well as current or retired Reserve or National Guard members, what you need is your discharge or separation papers (DD214). Are you active-duty? Get a signed statement of service from your commander, adjutant or personnel officer.

We can use the Web LGY web portal from the VA to request your COE, bypassing the need to send a request through the mail.

Q: How many times can I use a VA mortgage?

A: The number of times you can use your VA loan benefits to finance a home is unlimited.

Q: How long can I wait after I serve to use a VA loan?

A: It does not make a difference how many years ago it was that you served. There is no expiration for VA loan benefits. They are available for the rest of your life.

Q: I had a bankruptcy or a foreclosure. Does that disqualify me for a VA mortgage?

A: No. Once the waiting period is over, you can apply for a VA home loan.

Q: Is there a funding fee?

A:  Yes, there is a funding fee. You have to pay this fee to the Department of Veterans Affairs. The purpose of the fee is to make it possible for the VA to insure your mortgage.

How much is the funding fee? You can expect to pay anywhere from 1.25% to 3.3% of the amount of your mortgage.

If you want to reduce the size of the funding fee, one way you can do it is to put a down payment on your home.

Eligible disabled veterans also may not have to pay a funding fee at all.

Q: What can I do with a VA mortgage?

A: You can use a VA loan to buy a home, build one, make improvements to one, or refinance.

Q: How much can I borrow with a VA loan?

A: There used to be limits on loans above $144,000, but currently the VA says, “Eligible Veterans, service members, and survivors with full entitlement no longer have limits on loans over $144,000. This means you won’t have to pay a down payment, and we guarantee to your lender that if you default on a loan that’s over $144,000, we’ll pay them up to 25% of the loan amount.”

That page lists the criteria for full entitlement, so please check there for more details.

Keep in mind that your lender will decide how much you are eligible to borrow based on your income, credit history, and other financial details.

Apply for a VA Mortgage in San Diego Now

Now you have answers to some frequently asked questions about VA mortgages in California. If you have additional questions we did not answer here, we can do so during your consultation. To get started, please give us a call today at (619) 692-3630.

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