The VA Loan Guide for San Diego Buyers

Updated September 2026 · Rudy Flores

A VA loan works differently from a conventional or FHA loan in a handful of specific ways. None of it is complicated once you've seen it laid out — here's what each piece actually means, and where it can affect a San Diego purchase.

Certificate of Eligibility (COE)

Before a lender can process a VA loan, they need your Certificate of Eligibility, which confirms you meet the service requirements and shows your entitlement amount. Most lenders can pull this electronically in minutes once they have your basic service information; you don't need to request it yourself first. Eligibility generally covers veterans, active-duty service members who've met a minimum service requirement, and certain National Guard, Reserve and surviving-spouse categories — the exact rules depend on when and how long you served, so a lender or the VA can confirm your specific situation.

Entitlement: what actually limits how much you can borrow

"Entitlement" is the VA's guarantee behind your loan, and it's the number that determines how much you can finance with no down payment. Most first-time users have full entitlement, which for most San Diego County price points means no VA-required down payment and no VA-imposed cap on the loan amount — your income, credit and the appraisal still set the real ceiling. If you already have a VA loan you're carrying, or you've used entitlement before without fully restoring it, you may have remaining entitlement only, which can mean a down payment is required on a portion of the purchase price. This is one of the first things worth clarifying with your lender, since San Diego's prices make it relevant more often than in lower-cost markets.

The VA funding fee — and who's exempt

In place of monthly mortgage insurance, most VA loans include a one-time funding fee, which can typically be rolled into the loan rather than paid out of pocket. The fee is a percentage of the loan amount that varies by your down payment size and whether it's your first time using the benefit or a subsequent use. Veterans receiving VA disability compensation are commonly exempt from the fee entirely, and some surviving spouses are exempt as well. Because the exact percentages are set by the VA and can change, ask your lender for the current fee table rather than relying on a number you saw somewhere online — and if you have any disability rating, always ask specifically whether it exempts you.

No down payment, no monthly PMI — but not no closing costs

The two headline features of a VA loan are the option to finance 100% of the purchase price (within your entitlement) and no monthly private mortgage insurance. Neither one eliminates closing costs. You'll still see items like the appraisal, title, escrow and recording fees; the VA does limit certain fees a lender can charge you directly, and a seller can contribute up to a set percentage of the price toward your closing costs and prepaids — useful to know going into negotiations in a market where sellers are willing to talk concessions.

The VA appraisal and Minimum Property Requirements (MPRs)

A VA appraisal does two jobs: it estimates value like any appraisal, and it checks the home against the VA's Minimum Property Requirements — a baseline for safety, soundness and sanitation (things like a working roof, safe electrical, and no obvious health hazards). It is not a full home inspection, and getting your own inspection is still worth doing. Older homes and homes with deferred maintenance are where MPR issues most often surface; if repairs are needed, they typically have to be completed before closing, which is worth factoring into your offer strategy in a competitive listing.

Occupancy: this has to be the home you live in

VA loans are for primary residences, not investment or vacation properties. You're generally expected to move in within a reasonable period after closing, commonly interpreted as 60 days, with some documented exceptions for active-duty service members with orders. This is a real requirement lenders check, not a formality — if your timeline is unusual (a pending PCS, a deployment, a spouse relocating ahead of you), raise it with your lender early rather than after you're in contract.

Assumability: a feature most buyers don't know VA loans have

VA loans can be assumed by a qualified buyer, meaning a future buyer of your home could potentially take over your loan and its rate, subject to lender approval and creditworthiness. In a higher-rate environment this can be a real selling point down the road; in a lower-rate environment it matters less. It's a nuance worth knowing about even if it doesn't factor into your decision today.

Using the benefit more than once

The VA loan benefit isn't limited to a single use in your lifetime. Entitlement typically restores after you sell a home financed with a VA loan and pay it off, and in some cases you can use remaining entitlement to buy again without selling your current home first, if enough entitlement is left to support the new loan. If you're a repeat VA buyer, your lender will walk through exactly how much entitlement you have left and what that means for your down payment.

Questions worth bringing to your lender

None of this replaces a conversation with a VA-approved lender about your specific service history and entitlement — the details above are the general shape of how these loans work, not a substitute for your Certificate of Eligibility and a real pre-approval.