A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs and available to eligible active-duty service members, veterans, National Guard, Reservists, and surviving spouses. It remains the single best mortgage benefit in the country — $0 down, no monthly mortgage insurance, and competitive interest rates that beat conventional in most pricing scenarios.
How does a VA Loan work?
| Down payment | $0 down for borrowers with full VA entitlement, regardless of loan amount. |
| Loan limits | No VA loan limit for borrowers with full entitlement. County limits still apply for borrowers with partial entitlement. |
| Mortgage insurance | None. Ever. VA loans never carry monthly PMI or MIP. |
| VA funding fee | 2.15% first use, 3.3% subsequent use, financeable. Waived for veterans with service-connected disability rating. |
| Credit score | VA does not set a minimum credit score; Save Financial originates VA loans down to 580 FICO. |
| Eligibility | Requires Certificate of Eligibility (COE). Save Financial pulls your COE for you in under 24 hours. |
Who should consider this loan?
- Active-duty service members stationed in or relocating to California.
- Veterans with 90+ days of qualifying active service.
- National Guard and Reserve members with 6+ years of service.
- Surviving spouses of service members who died in the line of duty or from service-connected disability.
- Veterans refinancing an existing VA loan to lower their rate (VA IRRRL).
Save Financial advantage
As a direct California mortgage lender shopping across 40+ wholesale and correspondent investors, we match your va loan file to the program with the sharpest pricing and most flexible guidelines — not just the one our bank happens to sell.
How does a VA loan compare to Conventional and FHA?
| VA | Conventional | FHA | |
|---|---|---|---|
| Down payment | $0 | 3–5% | 3.5% |
| PMI / MIP | None | Until 78% LTV | Life of loan* |
| Funding fee | 2.15–3.3% (financed, waived w/ disability) | None | 1.75% UFMIP |
| Credit min | 580 (Save Financial) | 620 | 580 |
| Loan limit | No limit w/ full entitlement | $806,500–$1.2M CA | $1.2M max CA |
| Streamline refi | VA IRRRL (no appraisal) | Rate & term refi | FHA Streamline |
Common questions about VA Loans
How much can I borrow with a VA loan in California?
Veterans with full VA entitlement have no loan limit on a VA loan — you can purchase a $2 million home in San Francisco with $0 down if you qualify on income and credit. Veterans with partial entitlement (because of a prior VA loan still in use) are subject to the county conforming limit, which ranges from $806,500 to $1,209,750 across California.
Does the VA funding fee apply in California?
Yes, the VA funding fee applies nationally. First-time VA loan users pay 2.15% of the loan amount; subsequent users pay 3.3%. The fee is financed into the loan, not paid out of pocket. Veterans with a service-connected disability rating of 10% or higher are exempt from the funding fee, and Save Financial handles the exemption documentation.
Can I use a VA loan to buy a multi-family home in California?
Yes. The VA allows the purchase of 1–4 unit properties as long as the veteran occupies one unit as their primary residence. This makes VA loans an exceptional house-hacking tool in California — buy a duplex or triplex with $0 down, live in one unit, and rent the others to cover most of the mortgage.
What is a VA IRRRL?
A VA Interest Rate Reduction Refinance Loan (IRRRL) is a streamline refinance available to veterans who already have a VA loan. It requires no new appraisal, no new income verification, no termite inspection, and minimal credit re-verification. IRRRLs typically close efficiently and exist solely to lower the veteran's rate or move from an ARM to a fixed rate.
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