Peter Van Brady
Founder of SoCal VA Homes
Author: Avoiding Mistakes & Crushing Your Deals Using Your VA Loan
It’s no secret that sunny San Diego County is one of the most desirable places to live in the entire country. From the La Jolla Cove to the foothills of Mount Palomar, the beauty of the county is hard to beat. With 16 naval and military installations in the area, it’s easy to see why 10 - 20% of all local home loans are VA loans. VA loan limits in San Diego County have changed in a big way...
But let's ask Samson, our military Veteran real estate PRO, did VA loan limits in San Diego County REALLY disappear?
No More VA Loan Limits in San Diego County!
In high cost-of-living areas such as San Diego County, the zero-down home buying power of many Veterans had been capped by VA loan limits. Veterans looking to borrow over these limits had to contribute a down payment to secure a VA loan and buy the home. Thanks to the Blue Water Navy Vietnam Veterans Act of 2019, VA loan limits have disappeared for Veterans with full entitlement.
Samson (who represents the passionate military Veteran team member in all of us at SoCalVAHomes) says this dramatically changes the game for Veterans in San Diego county!
Watch this brief video to find out why and discover how the VA Conforming & VA Jumbo Loan Limits still apply.
These new rules mean that Veterans with full VA loan entitlement can be approved for zero-down home loans, no matter what the home purchase price is. Of course, borrowers will still need to meet underwriting and credit requirements set forth by the lender. The difference is that the VA loan guaranty for 100% financing can now be applied to not only loans above the conforming loan limit, but borrowers can achieve 100% financing above the county’s previous high-cost limit as well!
What is the Conforming Loan Limit and High-Cost Limit and Do They Still Count?
The Conforming loan limit is the maximum loan amount for specific conventional and government loan programs, and it is established by the Federal Housing Finance Agency. In higher cost-of-living counties such as San Diego County, expanded high-cost limits were established to create greater affordability for home buyers. In the past, VA lenders used these high-cost loan limits to determine the maximum loan size a military borrower could get with zero down. Though these high-cost numbers no longer serve as a limit, lenders still use them to differentiate between conforming VA loans and jumbo VA loan terms.
It is worth mentioning that there are still distinct differences in conventional loans vs VA loans, as it relates to the new changes. If you’re borrowing over the conforming loan limit in your county, chances are that your lender will have more stringent underwriting and credit requirements for conventional loans. Similarly, In San Diego County, the 2021 “high balance” loan limit is no longer a relevant number for VA borrowers wishing to finance 100% of their home up to some very large numbers! That's great news...ready for the first step? You can begin your process of pre-qualification right here:
It's essential to be pre-qualified.
What If I Don’t Have Full VA Loan Entitlement?
For Veterans without full VA loan entitlement, the previous VA loan limits still apply. If you’ve used a portion of your entitlement on a previous VA loan, your remaining entitlement will be determined by the conforming loan amount. Looking to take advantage of the new rule changes? You can restore your entitlement by refinancing your previous VA loan to a conventional loan.
Other VA Home Loan Changes
In addition to eliminating VA county loan limits, the new legislation also gives a small bump to the VA Funding Fee. Most active-duty Veterans will see an uptick in these fees, while Reservists will see a slight drop. Purple Heart recipients are now exempt from paying the Funding Fee, whether or not they have disability benefits. See if you meet the VA loan Requirements or call us at 949-268-7742 today!
Here Are The Cities and Zip Codes Where These Loan Limit Changes Apply:
Del Mar - 92014
Carmel Valley - 92130
Olivenhain - 92024
Rancho Santa Fe - 92067
Solana Beach - 92075
Cardiff-By-The-Sea - 92007
Encinitas - 92024
Leucadia - 92024
La Costa - 92009
San Elijo Hills
Carlsbad - 92008, 92009
Oceanside - 92054, 92056, 92057
Vista - 92083, 92084
San Marcos -92069, 92078
Ramona - 92065
Escondido - 92025, 92026, 92027, 92029
Rancho Bernardo - 92127, 92128
Poway - 92064
Carmel Mt Ranch & Sabre Springs - 92128
4S Ranch - 92127
Santaluz - 92127
Rancho Penasquitos - 92129
Torrey Highlands - 92129
Scripps Ranch 92131
Mira Mesa - 92126
La Jolla - 92037
University City & UTC - 92122
Clairemont - 92117
Pacific Beach -92109
Mission Beach - 92109
Ocean Beach - 92107
Point Loma - 92106
Old Town & Bay Park -92110
Downtown San Diego - 92101
Tierrasanta - 92124
Mission Valley - 92108, 92110
Mission Hills - 92103
North Park -92104
Sorrento Mesa - 92121
San Carlos - 92119
Del Cerro - 92120
College & Talmadge - 92115
Kensington - 92116
El Cajon - 92019, 92020, 92021
Santee - 92071
Alpine -91901
Spring Valley - 92077
La Mesa - 91941, 91942
Chula Vista -91910, 91911, 91912, 91913
Coronado - 92118
Bonita - 91902
Imperial Beach - 91932
Whether you’re looking to build a home of your own in East County or want a plan that will get your offer accepted on a coastline property, the team at SoCal VA Homes is committed to your home buying success. Call us today at 949-268-7742 !
