How it works
The VA home loan is not DPA, but for eligible California veterans it eliminates the need for DPA entirely. Zero down payment, no mortgage insurance, competitive rates, and no household income limit. For a veteran, it's the single best mortgage product in America.
VA eligibility requires a Certificate of Eligibility (COE) from the VA. Most honorably-discharged veterans, active-duty service members with 90+ days of service, National Guard and Reserve members with 6+ years of service, and certain surviving spouses qualify.
Best stack: VA first mortgage + MCC. The MCC tax credit pairs seamlessly with the zero-down VA structure, adding $2,000/year of federal tax benefit on top of an already-optimal loan.
Who it's for
Honorably-discharged veterans, active-duty service members, National Guard and Reserve members with qualifying service, and certain surviving spouses.
Eligibility at a glance
- First-time buyer?
- No
- Minimum FICO
- 580
- Maximum DTI
- 50%
- Income limit
- No income limit.
- Priority categories
- Veterans, Active duty, Reservists, Surviving spouses
Repayment terms
Standard amortizing first mortgage. No separate DPA — the VA guarantee eliminates the need for down payment entirely.
Term
30 years
Due at
30-year amortization
Property rules
- Eligible property types
- Single-family residence, Condo (VA-approved), 2-4 unit, PUD
- Owner-occupancy required
- 1 years
Layering & first mortgage options
Works with these first mortgages: VA (standalone)
VA is its own first mortgage. Can combine with an MCC and with GSFA Platinum grant for additional benefit.
Stacks with
Cannot combine with
How to apply
Process: Standard VA mortgage application through a VA-approved lender. Borrower provides Certificate of Eligibility (COE).
Funding cycle: Continuous.
Typical timeline: 30-45 days.
Things that trip borrowers up
- VA funding fee varies by down payment and prior VA use — 1.25%-3.3% of loan amount. Can be financed.
- VA condo approval is stricter than FHA — verify the project is on the VA-approved list.
- Surviving spouse eligibility requires specific documentation — refer to a Veterans Service Organization for COE.
Frequently asked questions
- Do I have to pay back VA benefit if I sell the home?
- No. The VA guarantee is a one-time benefit that funds your purchase. When you sell, you repay the mortgage itself (via closing proceeds) and your VA entitlement can potentially be restored for a future purchase.
- What's the VA funding fee?
- Between 1.25% and 3.3% of the loan amount, depending on down payment (if any) and whether it's your first VA loan. Fee can be financed into the loan. Disabled veterans are exempt from the fee.