VA Loan Questions for San Diego County Buyers

Who can get a VA home loan?

The VA lists service members, veterans, National Guard and Reserve members, and some surviving spouses. Someone on active duty generally needs at least 90 continuous days of service. A veteran who served on or after August 2, 1990 generally needs 24 continuous months, or the full period called to duty if it was at least 90 days. Guard and Reserve members can qualify through 90 days of qualifying active duty, or 6 creditable years plus continued service, an honorable discharge or retirement.

What is a Certificate of Eligibility, and how do I get one?

The Certificate of Eligibility, or COE, confirms for your lender that you qualify for the VA home loan benefit, and it shows your entitlement. You can ask for one online, have a lender pull it through the VA’s Web LGY portal, or mail in VA Form 26-1880, which the VA says may take longer. Veterans usually provide a DD214, and active-duty members may need a statement of service signed by a commander, adjutant or personnel officer.

What kinds of homes can a VA purchase loan buy?

The VA lists homes with up to 4 units, condos in a VA-approved project, manufactured homes and lots, new construction, and buying a home to improve it. You have to plan to live in the home yourself, since a VA purchase loan doesn’t cover a rental or vacation property. If a condo catches your eye, ask your lender to check the project’s VA approval before you write an offer.

How much is the VA funding fee on a purchase?

It’s a one-time charge figured as a percentage of the loan. In the table on VA.gov, last updated October 5, 2026, a first-time user pays 2.15% with less than 5% down, 1.5% with 5% or more down, and 1.25% with 10% or more down. After the first use, the fee for less than 5% down rises to 3.3%, while the other two tiers stay the same. You can add the fee to the loan or pay it at closing.

Who doesn’t pay the funding fee?

You don’t pay the fee if you get VA compensation for a service-connected disability, or if you’re eligible for that compensation but draw retirement or active-duty pay instead. The list also covers a surviving spouse on Dependency and Indemnity Compensation, a service member whose proposed or memorandum rating on a pre-discharge claim comes before closing, and an active-duty member who shows a Purple Heart by closing day. If the VA later awards compensation with an effective date before your closing, you may qualify for a refund.

What is entitlement, and what if only part of it is left?

Entitlement is the amount the VA would pay your lender if the loan weren’t repaid. The basic amount covers loans of $144,000 or less, and above that the VA backs up to 25% of the loan. If some entitlement is still in use, the VA works out what remains from 25% of the county’s one-unit limit, minus what you’ve used. Most lenders want entitlement, a down payment or both to cover at least 25% of the loan.

Can the seller help with my closing costs?

Yes. The VA lets sellers or builders credit some or all of a buyer’s closing costs, and it doesn’t cap those credits. It does cap seller concessions at 4% of the home’s reasonable value, the number shown on your VA Notice of Value. Concessions include things like paying your funding fee or prepaying hazard insurance.

What does the VA appraisal check?

A VA-approved appraiser gives an opinion of value and compares the home with the VA’s Minimum Property Requirements, found in chapter 12 of the VA Lenders Handbook. The results come back in a Notice of Value that lists any repair items. Those items have to be finished before closing, and the appraisal doesn’t replace your own home inspection.

What if the appraisal comes in below the price?

The VA’s escape clause lets you cancel without losing your earnest money if the price is above the VA’s reasonable value, or you can go ahead anyway. You can also ask for a Reconsideration of Value with recent sales data, renegotiate with the seller, or bring cash for the difference. Before you offer, Rudy can go over recent sales of similar homes with you.

How does a VA streamline refinance (IRRRL) work?

An IRRRL refinances a VA-backed loan you already have, and you must be able to certify that you live in the home now or did before. The VA describes it as a way to get a lower interest rate or to move from an adjustable or variable rate to a fixed one. The funding fee on an IRRRL is 0.5%, and the site’s Refinance Break-Even Calculator shows how long the monthly savings take to earn back the costs.

What about a VA cash-out refinance?

A cash-out refinance takes cash from your home’s equity for needs like paying off debt, paying for school or making home improvements. It can also move a non-VA loan into a VA-backed one. You need to qualify for a COE, meet VA and lender standards for credit and income, and live in the home. The funding fee is 2.15% on a first use and 3.3% after that.

Can I take over a seller’s VA loan?

Possibly. The VA says anyone who qualifies can assume a VA loan, even a buyer who isn’t a veteran, and the loan servicer usually checks income and credit first. The funding fee on an assumption is 0.5%, unless you’re exempt. Any equity the seller has built stays with the loan, so how the seller gets paid for it is part of your negotiation.