VA Loan Guide for Veterans in California
For veterans looking to purchase a home in California, the VA loan program offers significant advantages that can make homeownership more achievable, even in a high-cost market.
From no down payment requirements to flexible credit guidelines, VA loans are an attractive option for military members and their families.
California also offers state-specific housing assistance and benefits for veterans that enhance these advantages.
California Veteran Programs by City
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Los Angeles County Development Authority (LACDA) – Veterans Housing Program, Los Angeles
LACDA provides housing assistance to veterans in Los Angeles, offering down payment and closing cost assistance programs to make homeownership accessible. They also provide affordable housing units exclusively for veterans.
Explore Veterans Housing Program in Los AngelesHomes 4 Families – Veteran Enriched Neighborhoods, Los Angeles
This program focuses on building homes for low-income veterans and their families in Los Angeles, providing affordable mortgage options and supportive services to help veterans transition into homeownership.
Learn more about Homes 4 Families in Los AngelesSupportive Services for Veteran Families (SSVF) – Los Angeles
SSVF helps homeless or at-risk veterans and their families find and maintain stable housing. It offers case management, housing counseling, and temporary financial assistance to veterans across Los Angeles County.
Find out more about SSVF in Los Angeles
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San Diego Housing Commission – First-Time Homebuyer Program for Veterans, San Diego
The San Diego Housing Commission offers a variety of homebuyer programs for veterans, including down payment and closing cost assistance for low- to moderate-income veteran families looking to buy their first home in San Diego.
Explore San Diego First-Time Homebuyer Program for VeteransHabitat for Humanity Veterans Build – San Diego
Habitat for Humanity’s Veterans Build program provides affordable homeownership opportunities for veterans in San Diego. Veterans work alongside volunteers to build homes while receiving financial education and support.
Learn more about Veterans Build in San DiegoVeteran Homelessness Prevention Demonstration (VHPD) – San Diego
VHPD offers housing assistance to veterans at risk of homelessness in San Diego. This program helps veterans find and secure stable housing and offers additional resources for long-term stability.
Find out more about VHPD in San Diego
Santa Clara County Housing Authority – Veterans Housing Program, San Jose
The Santa Clara County Housing Authority offers affordable housing options and down payment assistance to veterans in San Jose. The program is designed to make homeownership accessible for low- to moderate-income veterans.
Explore Santa Clara County Veterans Housing Program
HomeFirst Services of Santa Clara County – Veterans Supportive Housing, San Jose
HomeFirst provides affordable housing and homebuyer assistance to veterans in San Jose. Their services include financial counseling, housing navigation, and access to transitional and permanent housing options for veterans.
Learn more about HomeFirst Services for Veterans
Veterans Housing and Homeless Prevention (VHHP) Program – San Jose
The VHHP program provides housing assistance, including homebuyer support and affordable rental housing, to veterans in San Jose. The program offers financial assistance to help veterans achieve homeownership.
Find out more about VHHP Program in San Jose
San Francisco Mayor’s Office of Housing – Veterans Homeownership Assistance, San Francisco
The Mayor’s Office of Housing in San Francisco offers down payment assistance, low-interest loans, and grants to help veterans purchase homes in the city. The program is designed to make homeownership more affordable for veterans.
Explore Veterans Homeownership Assistance in San Francisco
Swords to Plowshares – Veteran Housing Services, San Francisco
Swords to Plowshares provides housing assistance to veterans in San Francisco, including support for buying homes. They offer financial counseling, housing navigation, and resources for veterans looking to become homeowners.
Learn more about Swords to Plowshares in San Francisco
Veterans Equity Center – San Francisco
This organization provides a range of housing services, including homebuyer assistance, financial education, and housing counseling to veterans in San Francisco. The Veterans Equity Center helps veterans secure affordable housing and transition to homeownership.
Find out more about Veterans Equity Center
Fresno Housing Authority – Veterans Housing Assistance, Fresno
The Fresno Housing Authority offers affordable housing programs specifically for veterans, including down payment assistance and low-interest loans. The program is designed to make homeownership more achievable for veterans in Fresno.
Explore Veterans Housing Assistance in Fresno
Central Valley Veterans – Veteran Homebuyer Assistance, Fresno
This nonprofit organization offers homebuyer education, down payment assistance, and financial counseling to help veterans in Fresno achieve homeownership. They focus on helping veterans navigate the complexities of the homebuying process.
Learn more about Central Valley Veterans
Supportive Services for Veteran Families (SSVF) – Fresno
SSVF provides housing assistance to very low-income veteran families who are homeless or at risk of becoming homeless in Fresno. This program offers temporary financial assistance, housing counseling, and long-term support for homeownership.
Find out more about SSVF in Fresno
Sacramento Housing and Redevelopment Agency (SHRA) – Veterans Homebuyer Program, Sacramento
SHRA offers down payment assistance and affordable mortgage options to veterans looking to buy homes in Sacramento. The program is aimed at helping low- to moderate-income veterans achieve homeownership.
Explore Veterans Homebuyer Program in Sacramento
Veterans Resource Centers of America – Homeownership Program, Sacramento
This organization provides housing services and financial education to veterans in Sacramento. Their homeownership program offers assistance with down payments, credit repair, and access to affordable housing for veterans.
Learn more about Veterans Resource Centers of America
California Veterans Home Loan Program – Sacramento
This state-funded program offers low-interest loans and down payment assistance to help veterans in Sacramento purchase homes. The program also provides financial education and resources to support veterans in their homeownership journey.
Find out more about California Veterans Home Loan Program
What are VA Loans?
VA loans are government-backed mortgage programs available to qualified veterans, active-duty service members, and eligible surviving spouses. These loans offer significant benefits that make homeownership more accessible and affordable. Below are some of the key advantages of VA loans:
1. No Down Payment Requirement
- Benefit: VA loans allow homebuyers to purchase a property without a down payment, helping them retain cash for other expenses.
- Why It Matters: This eliminates the need for saving a large down payment, which can be a barrier for many buyers, especially first-time homeowners.
2. No Private Mortgage Insurance (PMI)
- Benefit: VA loans do not require PMI, which significantly reduces monthly mortgage payments.
- Why It Matters: Conventional loans often require PMI if the buyer puts down less than 20%, making VA loans a more affordable option for veterans.
3. Competitive Interest Rates
- Benefit: VA loans typically offer lower interest rates than conventional loans.
- Why It Matters: Lower rates result in reduced monthly payments and savings on the overall cost of the loan over time.
4. Flexible Credit Requirements
- Benefit: VA loans are more lenient in terms of credit score requirements, opening opportunities for borrowers with less-than-perfect credit.
- Why It Matters: Veterans with a lower credit score may still qualify for a VA loan, making it easier to secure financing compared to other loan programs.
5. Caps on Closing Costs
- Benefit: VA loans limit the amount veterans pay in closing costs, protecting buyers from high upfront fees.
- Why It Matters: Lower closing costs make it easier for buyers to afford the initial expenses associated with purchasing a home.
VA Loan Eligibility Criteria
To qualify for a VA loan, applicants must meet the service and eligibility criteria set by the Department of Veterans Affairs.
Veterans: Those who have met the required active-duty service and were discharged under conditions other than dishonorable. Active-duty service members: Current active-duty personnel are eligible to apply. National Guard and Reserve members: Must have completed six years of service or served a minimum of 90 days of active duty during wartime. Surviving spouses: Spouses of service members who died in the line of duty or from a service-related injury may qualify for VA loan benefits.
Here are the basic service time requirements:
- 90 consecutive days of active duty during wartime
- 181 consecutive days of active duty during peacetime
- 6 years of service in the National Guard or Reserves, or 90 days of active-duty service under Title 32 orders (with at least 30 consecutive days served)
VA Loan Eligibility Calculator
California Housing Market Overview
As of 2024, California remains a high-demand market for homebuyers, with housing prices continuing to rise, especially in urban centers like Los Angeles, San Francisco, and San Diego. Despite being more competitive than many other states, California still offers a wide variety of housing options for veterans through state and federal programs.
The median home price in California is approximately $800,000, making homeownership challenging for many first-time buyers. However, veterans can benefit from VA loan programs and various state-specific resources to help make buying a home more accessible.
California Average Home Prices:
| City | Average Home Price |
|---|---|
| Los Angeles | $950,000 |
| San Francisco | $1,400,000 |
| San Diego | $850,000 |
| San Jose | $1,200,000 |
| Fresno | $430,000 |
| Sacramento | $530,000 |
Though prices are high, California veterans benefit from the state’s extensive veteran housing programs, property tax exemptions, and VA loan benefits, making homeownership more attainable.
What is the California VA Loan Limit?
$1,089,300
For 2024, California veterans with full VA loan entitlement can borrow as much as their lender approves without a down payment. The loan limit follows the conventional loan limit, which varies by county but typically starts at $1,089,300 in high-cost areas like Los Angeles and San Francisco.
For veterans with partial entitlement, loan limits still apply, and these vary based on county housing prices.
California Property Tax Exemptions for Disabled Veterans
California offers property tax exemptions to disabled veterans, which can significantly reduce the cost of homeownership. The exemption amount is based on the veteran’s disability rating:
- 100% Disability: Full exemption from property taxes.
- 70-99% Disability: Up to $150,000 in assessed property value.
- 50-69% Disability: Up to $100,000 in assessed property value.
These tax exemptions provide substantial savings, helping veterans manage the high cost of living in California.
California Housing Programs for Veterans
CalVet Home Loans – State of California
CalVet Home Loans provides competitive interest rates, low down payment options, and flexible credit requirements for veterans looking to purchase a home in California. The program also offers assistance for refinancing existing loans and home improvement projects.
Explore CalVet Home Loans
California Housing Finance Agency (CalHFA) – VA Loan Program
CalHFA partners with VA loans to provide affordable financing options for veterans. This includes down payment and closing cost assistance, making homeownership more accessible for low to moderate-income veterans in California.
Learn more about CalHFA VA Loan Program
Veterans Housing and Homelessness Prevention (VHHP) Program
The VHHP program provides funding for affordable housing and homeownership opportunities specifically for veterans in California. This program helps veterans transition from homelessness into homeownership by offering low-interest loans and housing assistance.
Find out more about VHHP Program
Los Angeles County Veterans Assistance Program
This program provides housing assistance, including rental subsidies and down payment assistance, to veterans in Los Angeles County. It’s aimed at helping homeless veterans and those at risk of homelessness secure permanent housing.
Learn more about LA Veterans Assistance
Supportive Services for Veteran Families (SSVF) – California
SSVF offers housing stabilization services, including temporary financial assistance, housing counseling, and help with homeownership for very low-income veterans across California.
Explore SSVF Services
California Veterans Home Loan Assistance (CVHLA)
This program provides low-interest loans and grants to veterans purchasing homes in California. It offers down payment assistance, financial counseling, and access to affordable mortgage rates.
Learn more about CVHLA
FAQs about California VA Loans
1. What is the current VA loan limit in California?
The current VA loan limit for 2024 in California is $1,089,300. Veterans with full entitlement can borrow beyond this limit based on lender approval.
2. Are there special programs for California veterans to help with home buying?
Yes, California offers several programs for veterans, including CalVet, CalHFA, and the VHHP program, which provide assistance with down payments, low-interest loans, and affordable housing options.
3. Do I need a down payment for a VA loan in California?
No, most California veterans can purchase a home with no down payment, provided they have full VA loan entitlement.
4. What credit score is required for a VA loan in California?
VA loans generally have flexible credit requirements, but most lenders in California will require a minimum credit score of 620.
5. Can I use a VA loan to buy land in California?
VA loans are typically for purchasing primary residences, but veterans may be able to use CalVet’s land loan program to buy land.
6. Are property taxes high in California?
California’s property taxes vary by county but are generally moderate. Veterans with disabilities may qualify for significant property tax exemptions, reducing the overall cost of homeownership.
7. What housing programs are available for low-income veterans in California?
Programs like CalHFA, CalVet, and the VHHP program offer various forms of assistance, including down payment help and low-interest loans for low-income veterans.
8. Can I refinance my home with a VA loan in California?
Yes, veterans in California can refinance their homes using VA loans to secure lower rates or better terms.
Who are VA Loans For?
VA loans are a great choice for veterans, active-duty service members, and eligible surviving spouses looking to buy a home without requiring a down payment. This type of loan is especially beneficial for those with limited savings or lower credit scores. Furthermore, VA loans are an excellent option for refinancing existing mortgages.
How VA Loans Work?
VA loans are backed by the Department of Veterans Affairs (VA), providing lenders with protection in case the borrower defaults. This guarantee enables veterans to obtain loans with more favorable terms, such as lower interest rates and no requirement for private mortgage insurance (PMI).
How to Qualify?
- Served at least 90 consecutive days during wartime or 181 days during peacetime.
- VA Certificate of Eligibility
- No down payment required.
- Minimum 620 credit score
- Debt-to-income of 45% or lower