Once buyers know they qualify for a VA loan, the next round of questions gets specific. How much is the fee if I put 5% down? Can I buy that condo? Will the seller cover my closing costs? Can I use the benefit again while I still own my first home? These mechanics move the numbers on a San Diego purchase.
Rudy is a real estate agent, not a lender, so the answers below explain how each piece works and what to ask, with every market figure dated. Nothing on this site is connected to or endorsed by the VA.
1. How much is the VA funding fee if I put 0%, 5% or 10% down?
The fee is a percentage of the loan amount, and two things set it: your down payment and whether you have used the benefit before. On the San Diego metro's typical home value of $926,961 (Zillow, as of September 2026), zero down on a first use means a fee of about $19,930, and on a later use about $30,590. Putting 5% down ($46,348) brings the fee to about $13,209, and 10% down ($92,696) brings it to about $10,428. Buyers who are exempt pay none of it.
The fee is usually rolled into the loan. At 7.32%, Freddie Mac's 30-year average for the week of October 22, 2026, financing that $19,930 first-use fee on a zero-down loan adds about $137 a month to principal and interest. Your lender's rate and the current fee table decide the real figures.
For reference, here is the purchase-loan table as VA.gov listed it in October 2026:
- Less than 5% down: 2.15% on first use, 3.3% after first use
- 5% to less than 10% down: 1.5%, first use or later
- 10% or more down: 1.25%, first use or later
Go deeper: VA funding fee calculator · Down payment savings planner
2. Can I use a VA loan to buy a condo?
Yes, but the building has to qualify as well as you do. A condo project generally needs VA approval before a VA loan can be used there, so ask your lender to check the project early, before you write an offer. If it is not approved, ask the lender what the options are and how long they could take.
Condo prices sit well below the metro's typical home value in several ZIP codes. Zillow's typical condo value as of September 2026 was $550,136 in 91910 Chula Vista, $556,518 in 92154 Ocean View Hills and Otay Mesa and $614,019 in 91913 Chula Vista, against $926,961 for the typical home of any type across the metro. With zero down and the 2.15% first-use fee financed, principal and interest on $550,136 at 7.32% is about $3,860 a month before HOA dues, tax and insurance.
HOA dues are part of that monthly cost, so ask your lender how they count toward your approval. In California the seller provides the association's documents; read the budget, reserves and any special assessments closely, and Rudy can go through them with you. A Mello-Roos special tax, if the condo has one, counts too.
Go deeper: HOA dues and Mello-Roos explained · Compare two homes side by side
Want answers for your own move? The four-question Home Strategy Quiz takes about a minute, and Rudy reads every answer himself.
3. Which closing costs can the seller pay on a VA loan?
On a VA purchase, who pays each closing cost is negotiable between buyer and seller. The VA's list of common costs includes the origination fee and discount points, credit report charges, the VA appraisal fee, title insurance, the recording fee, hazard insurance and property taxes. The VA also bars lenders from charging the borrower certain fees directly, known as non-allowable fees.
A seller can also contribute toward your closing costs and prepaid items, up to a limit the VA sets as a percentage of the price. Ask your lender how a proposed seller credit would be counted on your loan before it goes into an offer.
Whether a seller agrees depends on the home and the moment. For the week of October 10, 2026, the metro's market gauge came in at 53.7, inside its Balanced band, and about 10.1% of listings showed a price cut. Rudy checks how long a specific home has been listed and what similar homes sold for before suggesting the size of a credit request.
Go deeper: Listing price check · Questions to ask a lender
4. I have used my VA benefit before. Can I use it again?
Yes. The VA home loan benefit is not one and done. When you sell a home financed with a VA loan and pay that loan off, your entitlement typically restores, so it is available to use again.
Buying again while you keep the first home is sometimes possible too. You would be using whatever entitlement remains, and if it does not cover enough of the new loan, a down payment fills the gap. The math depends on your COE and the new price, so ask the lender to show it to you line by line.
Two things change on a second use. The funding fee rises to 3.3% when you put less than 5% down, while the 5% and 10% tiers stay the same. And the new home has to become your primary residence, so the first one is either kept as a rental or sold.
Go deeper: Keep it or sell it calculator · VA loan glossary
5. Is a VA loan cheaper than a conventional loan on a San Diego home?
Often, but compare the whole cost over the years you expect to keep the loan. Set five things side by side: the down payment, the one-time cost (the VA funding fee, or none if you are exempt), monthly mortgage insurance, the interest rate and APR, and how long you will keep the loan. A VA loan has no monthly mortgage insurance, which conventional borrowers putting little down generally pay.
Rates are the moving part. The latest dated benchmark here is 7.32%, Freddie Mac's 30-year fixed average for the week of October 22, 2026, and VA quotes can differ from that survey, so get VA and conventional quotes from two lenders on the same day. A conventional loan above San Diego County's 2026 conforming limit of $1,104,000 is a jumbo loan, priced and underwritten a little differently.
One more VA feature: a qualified future buyer can assume the loan, with lender approval, which can matter when you sell. The funding fee calculator puts the two loan types side by side at the same price, tax and insurance.
Go deeper: Weekly rate watch · All home tools
Have a question that is not on the list?
Fee tables, condo approvals and concession limits can change, so confirm each one with your lender before you count on it. Consider all of this general information, not personal financial, legal or tax advice. Weighing a specific home or a second VA purchase? Rudy can walk through the numbers with you and help you write down the exact questions for your lender.
Sources: VA: Funding fee and closing costs; VA: Home loan types; Zillow Research data; Freddie Mac Primary Mortgage Market Survey; FHFA conforming loan limits. Market figures are dated where they appear and describe the past, not the future.
Keep exploring
- Home Strategy Quiz for San Diego — Take the Home Strategy Quiz: four quick questions about buying or selling in San Diego, answered personally by Rudy Flores, Realtor® at Coldwell...
- VA Loan Questions for San Diego County Buyers — How a VA loan works on a San Diego County purchase: who qualifies, the funding fee, entitlement, the appraisal, the two VA refinance options and...
- Home Buying and Selling Calculators — Mortgage payment, affordability, rent vs buy, closing cost, property tax, refinance, moving cost, ADU return and seller net proceeds calculators...
- Home Guides: Practical Know-How for San Diego Buyers and Sellers — Practical guides, printable checklists and market insight for people buying, selling or moving in San Diego County.
General information, not financial, legal or tax advice. Every situation is different, so confirm the details for your own purchase.