VA Home Loans in California
California has about 1.4 million veterans, more than any other state, and the largest active-duty population in the country: Camp Pendleton, Naval Base San Diego, Miramar, Twentynine Palms, Edwards, Vandenberg, Travis, Lemoore and Beale. In a state where prices in many markets run far above the national median, a VA loan with no down payment and no loan limit can be the difference between buying and renting. We are licensed statewide, in all 58 counties.
California DFPI Financing Law License 60DBO-117390. NMLS #1925352.
VA in California, 2026
Down payment
$0 with full entitlement
Loan limit
None with full entitlement, even at $1.2 million
Funding fee, first use
2.15% with less than 5% down; exempt if you receive VA disability compensation
Property tax exemption
$180,671 basic, $271,009 low-income, for 100% disabled
Closing
Escrow company; funds release when the deed records
$0
Down payment with full entitlement
0.5%
Funding fee on an IRRRL streamline
58
California counties, licensed statewide
4.9
Average of 5,300+ Google reviews
Why a VA loan matters more in California than almost anywhere.
The VA guarantees a quarter of any loan amount a lender will approve for a veteran with full entitlement, which means there is no loan limit. In Oceanside, Chula Vista, Temecula, Fairfield or Lompoc, that is a $900,000 or $1.2 million home with nothing down and no monthly mortgage insurance, at a rate that is usually competitive with conventional pricing. No other program comes close for a service member stationed here or a veteran who stayed.
California adds its own layers. Closings run through an escrow company, and the county documentary transfer tax of $1.10 per $1,000, customarily paid by the seller, is joined by city taxes in Los Angeles, San Francisco, Oakland and others. Property taxes reset to about 1 percent of the purchase price under Proposition 13. The VA requires a wood-destroying insect inspection on California homes. And after closing, a veteran rated 100 percent disabled, or compensated at that rate for unemployability, qualifies for the Disabled Veterans’ Property Tax Exemption: $180,671 of assessed value in 2026, or $271,009 for households with income up to $81,131.
This page covers the VA program as it works in California. For the state as a whole, see our California page; for the benefit itself, the funding fee and eligibility in depth, see the VA hub. If you are comparing, FHA in California is the usual alternative, and for a veteran it is often the more expensive one.
Three ways to use the benefit in California.
Buying, dropping the rate on a VA loan you already have, or pulling equity out. The funding fee differs for each, and every one closes through escrow.
Buying
VA purchase
Nothing down with full entitlement and no loan limit, from a Fresno starter to a $1.2 million home in San Diego County. The funding fee is 2.15 percent on first use or 3.3 percent after, financed into the loan and waived for veterans receiving disability compensation. Sellers can pay your closing costs, and may also pay the funding fee and prepaids as concessions, which the VA caps at 4 percent of the loan.
Lower payment
VA IRRRL streamline
Replace a VA loan with a lower rate, usually with no appraisal and no income verification, for a 0.5 percent funding fee. California charges no tax on the new mortgage, so the escrow fee and the lender’s costs are the whole bill, which can shorten the break-even on a loan this size.
Use equity
VA cash-out refinance
Replace any loan, VA or not, with a VA loan for up to 100 percent of the value under VA rules, though most lenders cap it at 90. California veterans use it for an ADU, a renovation, debt consolidation, or to move from an FHA loan and drop the mortgage insurance for good.
The funding fee, and what applies in California.
The fee is set by federal law and fixed through November 2031. The last column is what a California veteran should know about each row.
| Your situation | First use | Subsequent use | In California |
|---|---|---|---|
| No down payment | 2.15% of the loan | 3.3% of the loan | The seller can pay your closing costs; the funding fee and prepaids count as concessions, capped at 4% of the loan. On a $900,000 loan the first-use fee is $19,350, so the exemption matters |
| 5% to 9.99% down | 1.5% | 1.5% | No state mortgage tax to reduce; a down payment only lowers the funding fee and the payment |
| 10% or more down | 1.25% | 1.25% | Rarely worth it; VA charges no mortgage insurance and California charges no mortgage tax |
| IRRRL streamline refinance | 0.5% | 0.5% | No tax on the new loan; the escrow fee and lender costs are the whole bill |
| Exempt | Receiving VA disability compensation, or eligible and taking retirement pay instead; Purple Heart recipients on active duty; surviving spouses receiving DIC | Same | The same rating qualifies a 100% disabled veteran for the Disabled Veterans’ Property Tax Exemption after closing |
Lenders set credit and income rules; the VA sets none. Most want a 580 to 620 score and residual income after the payment, which California’s taxes, insurance and HOA dues make the deciding test on larger loans.
California’s Disabled Veterans’ Property Tax Exemption.
A veteran rated 100 percent disabled, or compensated at the 100 percent rate because of unemployability, or who is blind or has lost the use of two or more limbs because of service, can exempt part of the home’s assessed value from property tax. For 2026 the basic exemption is $180,671, and households with income up to $81,131 qualify for the low-income exemption of $271,009. Both amounts are indexed each year, and an unmarried surviving spouse keeps the exemption.
On a Proposition 13 bill of about 1 percent, the basic exemption is worth roughly $1,800 a year and the low-income exemption about $2,700. You apply with the county assessor after closing; we estimate your escrow with the exemption you qualify for, and the same rating usually waives the VA funding fee.
San Diego to Sacramento
VA loans closed through a California escrow office near you, wherever in the state the home is.
Six California details on a VA file.
The VA rules are national. These are the parts that are particular to California.
01
No loan limit, real underwriting
The VA will back a $1.2 million loan with nothing down, but the lender still has to see the income, the residual income and the credit to support it. On large loans the residual income test, after taxes, insurance and HOA dues, is usually what decides the file.
02
Termite inspection
The VA requires a wood-destroying insect inspection on homes in California, with any active infestation or damage treated before closing. The seller often pays for the inspection, and the VA now allows the buyer to pay for it as well.
03
Transfer taxes
The county charges $1.10 per $1,000, customarily paid by the seller, and cities such as Los Angeles, San Francisco and Oakland add their own. A VA loan is not exempt; who pays is negotiable and written into the contract.
04
Proposition 13 and the exemption
Taxes reset to about 1 percent of the purchase price plus local assessments. The Disabled Veterans’ Exemption comes off the assessed value after you apply with the county assessor.
05
Condos need VA approval
A condo must be on the VA’s approved list before you can use the benefit on it, and the HOA dues count in your residual income. We check the building before you offer.
06
Buying near base
Homes around Camp Pendleton, San Diego, Twentynine Palms, Edwards, Vandenberg, Travis, Lemoore and Beale change hands often between service members, and lenders and appraisers there see VA loans every day. The funding fee is charged once per loan, not per move.
What would a VA payment be in California?
Choose VA as the loan type and set the down payment to zero. The mortgage insurance line stays at zero, which no other loan can match; use about 1.2 percent for property tax and add insurance and HOA dues to see the whole payment.
The U.S. VA market right now.
National average rates from the Federal Reserve Bank of St. Louis FRED database: the Freddie Mac survey for conventional and the Optimal Blue indices for FHA and VA, shown as third-party market benchmarks, not MortgagePros pricing. VA loans often price competitively against conventional loans, depending on the borrower, lender and market, and there is no monthly mortgage insurance in the payment, so compare the whole payment rather than the rate alone.
VA 30-year fixed, U.S. average
7.09%
Conventional 30-year fixed, U.S. average
7.40%
FHA 30-year fixed, U.S. average
7.18%
Sources: Freddie Mac Primary Mortgage Market Survey (conventional, 30-year national average, week of Oct 8, 2026) and Optimal Blue Mortgage Market Indices (FHA and VA, 30-year national averages as of Oct 8, 2026), distributed through FRED, Federal Reserve Bank of St. Louis; the figures and dates refresh automatically from the source. These are third-party market benchmarks, not MortgagePros rates and not an offer of credit. Your rate and APR depend on your credit, loan type, property and lock date. MortgagePros is not affiliated with, endorsed by, or acting on behalf of the Department of Veterans Affairs or any government agency.
How a VA loan works with us in California.
Four steps, one licensed pro who closes VA loans every week, and a closing through a California escrow office near you.
1
Eligibility and the COE
We pull your Certificate of Eligibility, confirm your entitlement, and check whether you are exempt from the funding fee and qualify for the property tax exemption.
2
Pre-approval with real numbers
Income, credit and residual income verified, with Proposition 13 taxes, insurance and HOA dues already in the estimate.
3
Property and building checks
Termite inspection ordered, condo approval confirmed, insurance quoted early in wildfire zones, and likely appraisal items flagged, so the VA appraisal does not surprise anyone.
4
Close through escrow
Signing happens at a California escrow office near you or with a mobile notary. Funds release when the deed records; the funding fee, if any, is on the statement exactly as quoted.
Ready to use your VA benefit in California?
A licensed pro confirms your eligibility, your funding fee and any exemption, and quotes your rate with taxes, insurance and HOA dues in the numbers. Free, and it starts without a hard credit pull.
VA in California, answered.
The questions California veterans ask us most. If yours is not here, a licensed pro will answer it directly, with no obligation.
Is there a VA loan limit in California?
Not if you have full entitlement: the VA guarantees a quarter of any loan amount a lender will approve, so a $1.2 million home in San Diego or Orange County can be financed with nothing down. If part of your entitlement is tied up in another home you still own, the county conforming limit applies to the remainder, $1,249,125 in the coastal high-cost counties and $832,750 elsewhere, and a down payment may be needed; we work it out from your Certificate of Eligibility.
How much is the funding fee on a large California loan?
2.15 percent of the loan on first use with nothing down, so $19,350 on a $900,000 loan, and 3.3 percent on later uses; 1.5 percent with 5 percent down, 1.25 percent with 10 percent down, and 0.5 percent on an IRRRL. It is waived if you receive VA disability compensation, are eligible for it but take retirement pay instead, received a Purple Heart on active duty, or are a surviving spouse receiving DIC. It is usually financed into the loan.
What is the Disabled Veterans’ Property Tax Exemption?
A California exemption for veterans rated 100 percent disabled, or compensated at that rate for unemployability, or blind or missing the use of two or more limbs because of service, and for their unmarried surviving spouses. For 2026 it removes $180,671 of assessed value, or $271,009 if household income is $81,131 or less; both figures are indexed yearly. You apply with the county assessor after closing.
Does the VA require a termite inspection in California?
Yes. California is one of the states where the VA requires a wood-destroying insect inspection on the home, with any active infestation or damage treated before closing. The seller often pays for the inspection, and the VA now allows the buyer to pay for it as well.
How do property taxes work after I buy?
Under Proposition 13 your assessed value resets to the purchase price, so taxes run about 1 percent plus local assessments, and a supplemental bill for the difference arrives a few months after closing. The Disabled Veterans’ Exemption comes off that assessed value once you apply. Taxes are due in two halves, November 1 and February 1.
Do I have to come to Michigan?
No. Your licensed pro handles everything by phone, email and e-signature, pulls your Certificate of Eligibility for you, and the closing runs through a California escrow office near you or with a mobile notary.
Talk to a California-licensed pro about VA loans.
Tell us what you are looking to do and where in California. A licensed pro will call back, usually the same business day. Asking does not start a loan or require a hard credit pull.
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880 W. Long Lake Rd, Suite 300
Troy, Michigan 48098, just off I-75. Free parking.
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California DFPI Financing Law License 60DBO-117390. NMLS #1925352. Rated 4.9 across 5,300+ Google reviews.