Top VA Loan FAQs - San Diego & Imperial County

Top VA Loan FAQs

Am I eligible, and how do I get my COE fast

This is the single most consistent starting point: eligibility is proven to the lender through a Certificate of Eligibility (COE), and VA explains you qualify based on service history and duty status (with minimum active-duty service requirements varying by when and how you served). VA also notes that even with eligibility for a COE, you still must meet credit, income, and occupancy requirements from both VA and the lender. 

For speed, VA describes three primary ways to request a COE: online, through your lender (via VA’s WebLGY system), or by mail using VA Form 26-1880 while cautioning that mail requests may take longer than online or lender-assisted requests. 

When borrowers ask what documents they’ll actually need, VA’s COE instructions provide concrete examples such as a DD214 for many Veterans, and different evidence for certain Reserve/National Guard situations so the practical best move is to gather the “matching” documentation set before starting the request rather than scrambling mid-file. 

Can I really buy with zero down here, and do “loan limits” still matter

In plain terms: yes, VA loans often allow zero down, but the “why” and the “when” matter especially in higher-priced San Diego County neighborhoods.

VA’s purchase-loan page states that a VA-backed purchase loan often offers no down payment as long as the sales price isn’t higher than the home’s appraised value. VA’s entitlement-and-limits page also makes clear that the maximum VA loan on an individual property is generally the appraised value or the purchase price, whichever is lower which is why appraisal results create so many questions in markets where offers can run hot. 

The “loan limit” concept is where most confusion lives today. VA explains that if your COE reflects full entitlement, you “don’t have a loan limit” in the sense that VA isn’t capping your loan size assuming you can afford the loan amount and the appraisal supports the price. But VA also emphasizes that “full entitlement” doesn’t mean unlimited approval; the lender still underwrites credit, income, debts, and assets. 

Where the county line becomes critical is partial entitlement (for example, you have a current VA loan, or you used entitlement in the past and haven’t restored it). VA states that if you don’t have full entitlement, your remaining bonus entitlement is based on the county loan limit where the property is located minus the entitlement you’ve already used. VA further notes that most lenders require that entitlement, down payment, or a combination covers at least 25% of the total loan amount and provides a practical rule of thumb in its example: multiplying remaining bonus entitlement by 4 to estimate the maximum many lenders will lend without requiring a down payment. 

That’s why the 2026 FHFA one-unit values $1,104,000 (San Diego County) vs $832,750 (Imperial County) matter so much for certain borrowers: those figures can change how far remaining entitlement stretches before a down payment is needed to reach a 25% coverage level. 

What is the VA funding fee, and can I avoid it or finance it

Funding fee questions are constant in both counties because they directly affect cash-to-close and (if financed) the final loan amount.

VA explains the VA funding fee is a one-time payment on a VA-backed or VA direct home loan. It also explains the policy purpose: the fee helps lower program costs for taxpayers because the VA home loan program doesn’t require down payments or monthly mortgage insurance. 

VA also publishes the major exemption categories (these are the most commonly asked “do I still pay it?” scenarios). VA states you don’t have to pay a funding fee if, for example, you’re receiving VA compensation for a service-connected disability; you’re eligible for compensation but receiving retirement/active-duty pay instead; you’re an eligible surviving spouse receiving DIC; you have a proposed or memorandum rating tied to a pre-discharge claim; or you’re active duty and provide evidence of a Purple Heart on or before closing. 

On mechanics, VA states you can pay the funding fee either by financing it into the loan or paying it at closing. VA also states that on a purchase or construction/permanent loan, the only cost you can finance into the loan amount is the VA funding fee all other fees and charges must be paid when the loan closes. 

For borrowers asking about “how much is it,” VA publishes rate charts and examples. For instance, VA shows purchase/construction funding fee rates that vary by first use vs subsequent use and by down payment tier, with a first-time-use purchase rate of 2.15% when the down payment is less than 5% and a subsequent-use rate of 3.3% under that same down-payment tier. 

Do I have to live in the home, and can I rent it out later

Occupancy is one of the most important VA compliance questions because it governs what the loan is “for”: a primary home, not a vacation home or pure investment.

VA’s purchase-loan guidance lists eligibility conditions for a VA-backed purchase loan, including that you will live in the home you’re buying with the loan. 

VA’s Lender’s Handbook (Chapter 3, Topic 5) goes deeper and states that the law requires the Veteran to certify intent to personally occupy the property as their home either already living there or intending to move in within a “reasonable time.” VA defines “reasonable time” as within 60 days after closing, and notes that occupancy beyond 12 months generally can’t be considered reasonable by VA. 

Because this is a frequent San Diego question for deployed service members and relocating households, VA also addresses the most common exceptions directly: occupancy (or intent to occupy) by a spouse or dependent child can satisfy the occupancy requirement in certain active-duty scenarios, and VA states that deployed service members are considered to be in temporary duty status and able to meet the occupancy requirement even if a spouse won’t occupy prior to the Veteran’s return. VA also recognizes delayed occupancy exceptions tied to substantial repairs or improvements that prevent safe occupancy during the work. 

As for renting: VA’s guidance centers on intent and certification at origination, and it explicitly states that a seasonal vacation home does not satisfy the occupancy requirement. At the same time, VA’s handbook provides an example where a Veteran who was transferred overseas rents out the home and may refinance using an IRRRL based on previous occupancy which is why the common best practice is: don’t plan a VA purchase as a non-occupant investment strategy, but understand that life changes after legitimate occupancy can be handled within VA rule frameworks depending on the transaction type. 

What happens during the VA appraisal, and why repairs or termite items matter in California

In both counties, “What will the VA appraiser require?” is the question that usually shows up once a buyer is under contract especially on older homes, fixer-leaning listings, and anything with clear deferred maintenance.

VA’s COE/how-to-request guidance makes a key point that borrowers ask constantly: a VA appraisal estimates market value, and it isn’t a home inspection or a guaranty of value. 

From the VA Minimum Property Requirements (MPR) chapter, VA explains how the process is framed operationally: the appraiser prepares origination appraisals “subject to” completion of MPR repairs that appear needed, and VA explicitly instructs that appraisers must not make appraisals “subject to inspections” they must recommend repairs, not inspections, when conditions appear not to meet MPRs. VA also notes that after an origination appraisal, the Notice of Value includes a recommendation that the Veteran may wish to obtain a home inspection. 

California adds a major local twist that affects both San Diego and Imperial: VA’s “Local Requirements” page states that wood-destroying insect information is required for the entire state of California prior to the issuance of the VA Notice of Value (and lists California explicitly among the covered states). Separately, VA Circular 26-22-11 explains that where a wood-destroying pest inspection report is required (based on VA’s termite probability mapping and the Notice of Value conditioning), VA authorizes as a local variance that Veterans may be charged for the wood-destroying pest inspection fees, and that Veterans may also pay for repairs required to ensure compliance with MPRs while encouraging negotiation of costs. 

In San Diego County specifically, condo transactions create their own “mini-FAQ” because project approval status can be decisive. VA’s purchase-loan page states that a VA-backed purchase loan can be used to buy a condo in a VA-approved project, and VA’s condo approval guidance for lenders states a condominium must be approved by VA to be eligible for VA loan guaranty so approval timing and project eligibility are real constraints, not paperwork trivia. 

All loans subject to approval. Equal Housing Lender.