California VA Home Loans | Zero Down for Veterans

California VA Home Loans

California has roughly 1.5 million veterans — more than any other state. It also has the most expensive housing in the country outside Hawaii. Those two facts collide on almost every VA file we see here: the entitlement is fine, the price point is the problem.

A VA loan is the only major program that still does zero down with no monthly mortgage insurance. In a Los Angeles or Bay Area purchase, skipping PMI on an $800,000 loan is not a rounding error. It is the difference between qualifying and not.

CalVet or a Federal VA Loan?

This is the question California veterans actually ask, and most lender pages skip it.

They are two different programs. CalVet is run by the California Department of Veterans Affairs. The state buys the property and sells it to you on contract, which is why CalVet handles some situations a conventional VA lender will not. A federal VA loan is a private mortgage with a VA guaranty behind it.

Basic CalVet eligibility is 90+ days of active duty (training excluded) with a discharge under honorable conditions, and no existing CalVet loan. Check CalVet’s current published rate directly at calvet.ca.gov — it moves, and a stale number on a lender’s page helps nobody.

They are not stackable. You pick one. Which one wins depends on the property type, the county, and what your entitlement looks like — that is a conversation, not a chart.

The California Disabled Veterans’ Exemption

Most California veterans buying a home have no idea this exists, and it is worth real money every year.

• Basic exemption: $180,671 off assessed value, no income limit
• Low-income exemption: $271,009 off assessed value, household income $81,131 or less
• Eligibility: 100% service-connected disability rating, or compensated at the 100% rate for unemployability
• Also available to an unmarried surviving spouse

Amounts are for the January 1, 2026 lien date. There is no partial exemption below a 100% rating — California is all or nothing here, unlike Texas, which tiers it.

You claim it through your county assessor, not through us and not through the VA. If you are buying with a 100% rating, factor it into your payment before you shop price. On a Riverside or San Bernardino purchase it can move the property tax line enough to change what you qualify for.

Source: California State Board of Equalization

VA Loan Limits in California

If you have full entitlement — no active VA loan, no prior VA foreclosure — there is no VA loan limit. The county figures people quote only matter when your entitlement is partial.

That distinction gets lost constantly. A veteran with full entitlement buying in Santa Clara is not capped at the conforming number; the lender’s own overlays and your qualifying ratios are the real ceiling.

Where limits do apply, California’s high-cost counties run well above the national baseline. Los Angeles, Orange, San Francisco, San Mateo, and Santa Clara all sit at the ceiling. The full county-by-county table is on our California loan limits page .

Who We See Using VA Loans in California

• San Diego — the largest concentration of active-duty and recently separated service members in the state, and the most VA purchase volume
• Riverside and San Bernardino — where the payment math still works for a first purchase, and where inland commuters get more house per dollar
• Sacramento — state employment, Travis and Beale within driving distance
• Orange County and Los Angeles — high-cost purchases where zero down and no PMI carry the file
• Central Valley — Lemoore, Fresno, Bakersfield, where prices leave room for a second property later

VA Purchase Requirements

Guidelines vary by lender. Typical:

• Credit score: 620 minimum on most VA programs; better pricing at 700+
• Down payment: none with full entitlement
• Mortgage insurance: none, ever, at any LTV
• Funding fee: one-time, financeable, waived for veterans receiving compensation for a service-connected disability
• Occupancy: primary residence — VA is not an investor program
• Certificate of Eligibility: we can pull it, or request it yourself with VA Form 26-1880
• Debt-to-income: VA uses residual income alongside DTI, which is why VA files sometimes approve where conventional will not

Related California Programs

Not every veteran should use their VA entitlement on every purchase. If you are buying a rental, VA does not apply at all.

• California DSCR Loans — investment property, qualified on rent
• California Bank Statement Loans — self-employed, 12 or 24 months of deposits
• How VA Refinancing Works — IRRRL and cash-out for an existing VA loan
• VA Jumbo Loans — above conforming, still zero down with full entitlement

Talk Through Your Scenario

Bring the county, the price point, your entitlement status, and your disability rating if you have one. Those four things decide whether the answer is a federal VA loan, CalVet, or something else entirely.

For illustration only. Not a commitment to lend. Rates and terms subject to change and qualification. 1st Nationwide Mortgage Corporation, NMLS #1281. Equal Housing Lender.