Ryan Van Til
Mortgage Advisor, NMLS #02336853 | Pacific Trust Mortgage
If you have served in the military, the VA home loan is one of the most powerful benefits available to you. Zero down payment, no private mortgage insurance, and rates that consistently beat conventional loans. Yet many veterans either do not know about the program or have misconceptions about how it works. Here is what you need to know heading into 2025.
The Core Benefits
Zero Down Payment
This is the headline benefit. VA loans allow 100% financing on a primary residence, which means you can buy a home without putting a single dollar toward a down payment. For a $600,000 home, that is $120,000 you do not need to save compared to a 20% conventional down payment.
No PMI
Conventional loans with less than 20% down require private mortgage insurance, which can add $150 to $400 per month depending on the loan amount. VA loans never require PMI. That is a significant monthly savings over the life of the loan.
Competitive Rates
VA loan rates are typically 0.25% to 0.50% lower than conventional rates. Because the VA guarantees a portion of the loan, lenders take on less risk, and that translates directly into better pricing for the borrower. In early 2025, VA 30-year fixed rates are ranging from about 6.00% to 6.50%.
Eligibility Basics
VA loan eligibility is based on your service history. Generally, you qualify if you have served 90 consecutive days during wartime, 181 days during peacetime, or 6 years in the National Guard or Reserves. Surviving spouses of veterans who died in service or from a service-connected disability may also be eligible.
To confirm your eligibility, you will need a Certificate of Eligibility (COE). Your lender can usually pull this electronically through the VA portal in minutes. You can also request it yourself through the VA eBenefits website.
The VA Funding Fee
VA loans do not have PMI, but they do have a one-time funding fee. This fee goes directly to the Department of Veterans Affairs to help sustain the program. For a first-time use with zero down, the funding fee is 2.15% of the loan amount. On a $500,000 loan, that is $10,750. The fee can be financed into the loan so you do not have to pay it out of pocket at closing.
Funding Fee Exemptions
Veterans with a service-connected disability rating of 10% or higher are exempt from the funding fee entirely. This saves thousands of dollars. If you have a disability rating, make sure your lender knows before closing. Purple Heart recipients who are still on active duty are also exempt.
VA Loan Limits in 2025
Since 2020, there are no loan limits for veterans with full entitlement. That means if you have never used your VA loan benefit before (or have fully restored it), you can borrow as much as a lender will approve with zero down payment. The lender still has to verify you can afford the payment, but the VA itself does not cap the loan amount.
If you have a partial entitlement (for example, you still have an existing VA loan on another property), county loan limits do apply for the second loan. In San Diego County, the 2025 conforming loan limit is $1,006,250, which gives you substantial borrowing power even with split entitlement.
Common VA Loan Misconceptions
"You can only use it once." Not true. You can use your VA benefit multiple times. If you sell a home and pay off the VA loan, your entitlement is restored. You can even have two VA loans at the same time in certain situations.
"Sellers do not like VA offers." This used to be more true than it is today. VA appraisals can be stricter on property condition, but in a normal market, most sellers are happy to accept a VA offer. The loan is government-backed and reliable. A strong pre-approval letter goes a long way.
"VA loans take forever to close." With the right lender, a VA loan closes in the same 25 to 30 day window as any other loan. The VA appraisal can take a few extra days in some markets, but the overall timeline is comparable to conventional.
Why San Diego Is Ideal for VA Buyers
San Diego has one of the largest military populations in the country, with bases like Camp Pendleton, MCAS Miramar, Naval Base San Diego, and Naval Base Point Loma. The local real estate market is deeply familiar with VA loans, and agents and sellers in the area understand and accept them regularly.
With the 2025 county loan limit over $1 million, VA buyers in San Diego have access to a wide range of properties without needing a down payment. Neighborhoods near the bases, from Oceanside and Carlsbad to Chula Vista and Coronado, all have active markets where VA financing is common. And with rates in the low 6% range, the monthly payment on a VA loan is often hundreds less than what the same borrower would pay on a conventional loan after factoring in PMI.
If you are stationed in San Diego or recently separated and planning to stay in the area, the VA loan is almost certainly your best financing option. It is worth exploring even if you think you might not qualify. The eligibility requirements are broader than most people realize.