VA loans in San Diego

Why buyers use a VA loan

VA loans are backed by the U.S. Department of Veterans Affairs and made by private lenders to eligible veterans, service members and some surviving spouses. For many eligible borrowers they allow buying with no down payment and without monthly mortgage insurance. There is typically a one-time VA funding fee, which some borrowers are exempt from, for example those receiving VA disability compensation.

Lenders set the maximum amount they will lend based on your income, debts and credit, so the right first step is a conversation with a lender who does VA loans every week.

Get these lined up before you start touring

• Your Certificate of Eligibility (COE): your lender can usually request it, or you can get it through the VA’s eligibility tools.
• A pre-approval from a VA-experienced lender. Sellers take offers more seriously when the lender is known to close VA loans on time.
• A realistic budget that includes the funding fee (if it applies), property taxes, insurance, HOA dues and utilities.

The VA appraisal and what it means for the home you pick

Every VA purchase needs a VA appraisal, which checks value and also the VA’s Minimum Property Requirements: the home must be safe, structurally sound and sanitary. Peeling paint on an older house, a failing roof or a problem with the water supply or septic system can need to be fixed before closing.

John steers VA buyers toward homes that are likely to pass, and writes offers that account for the appraisal timeline so you are not surprised late in the process.

Condos, townhomes and rural property

Condominiums have an extra step: the VA generally requires the project itself to be approved, so check a condo’s status early, before you fall in love with a unit. Many downtown and coastal homes are condos.

Rural and acreage properties are held to stricter rules than most buyers expect. The property generally has to be residential in nature, and wells and septic systems must be shown to be working and safe. If you want land on a VA loan, say so on day one. It changes which homes are realistic and which lenders to talk to.