VA Loans in California (2026) — $0 Down, No PMI, Full Guide
If you served, the VA loan is almost always the best deal. Here's how to use it, what the funding fee really costs, and when to keep your VA benefit for later.
If you served on active duty (24+ months) or in the Guard/Reserve (6+ years), the VA loan benefit is one of the best mortgage products in the country: $0 down, no PMI, lower rate than conventional.
What you can do with it
- Buy a primary residence with 0% down up to your county loan limit ($1,209,750 in coastal CA counties)
- Refinance an existing VA loan via VA IRRRL (streamline) with minimal docs
- Refinance a non-VA loan into a VA loan (cash-out or rate-and-term)
- No private mortgage insurance, EVER, even at 100% LTV
- Use the benefit MULTIPLE times in your lifetime (one active VA loan at a time, with exceptions)
The funding fee (and how to avoid it)
VA charges a one-time funding fee on each loan, rolled into the loan:
- First-time use, 0% down: 2.15%
- First-time use, 5-10% down: 1.50%
- First-time use, 10%+ down: 1.25%
- Subsequent use: 3.30% (0% down) or 1.50% (5%+ down)
Funding fee waived if you receive VA disability compensation (any %), are a surviving spouse, or hold a Purple Heart.
VA loan limits in California (2026)
VA technically has no loan limit — you can borrow above the conforming limit, but you'll need to make a down payment on the portion above the limit (called "VA jumbo"). For most coastal CA counties, the conforming limit is $1,209,750.
When to KEEP your VA benefit (don't use it)
- Investment property — VA is owner-occupied only; save it for your next primary
- You're paying cash — Don't pay a funding fee on a loan you don't need
- You'll have multiple VA loans simultaneously — Use sparingly to preserve entitlement
What to expect at closing
VA closings take slightly longer than conventional (28-35 days vs 21) because of VA's appraisal process. The VA appraiser also enforces minimum property requirements (MPRs) — peeling paint, broken windows, and bad roofs trigger required repairs. Builders/sellers often agree to fix; just plan for it.
Used your benefit before or first time? Get a free VA quote — soft credit pull, no commitment.