Are you hearing mixed messages about VA loan limits in San Diego? You’re not alone. Between changing rules and high local prices, it’s easy to wonder if you’ll need a down payment or if condos are even eligible. You’ll learn how VA “limits” actually work, when they still matter, and smart ways to compete in San Diego’s market without giving up the benefits you earned. Let’s dive in.
What VA “loan limits” really mean
VA loans are issued by private lenders and backed by the Department of Veterans Affairs. The VA provides a guaranty to reduce lender risk, which is what enables the zero down feature for eligible buyers. The VA does not set a strict maximum loan amount for a qualified borrower. Instead, your available entitlement and the VA guaranty shape how much you can borrow with no down payment.
Entitlement is the amount of guaranty the VA will apply to your loan. You may hear about basic entitlement and additional entitlement. The total entitlement available to you determines whether the VA guaranty fully covers a loan amount or if a down payment is required when you go above certain thresholds.
Historically, county loan limits matched conforming loan limits, and buying above those limits meant a down payment equal to 25 percent of the amount above the limit unless you had extra entitlement. A key change in 2020 improved this. If you have full, unused entitlement, county limits no longer cap what you can borrow with no down payment, subject to lender approval and underwriting. County and conforming limits can still matter if you have reduced entitlement or when a lender applies its own risk rules.
How this applies in San Diego County
San Diego County is a high-cost coastal market with frequent multiple offers and low days on market in sought-after neighborhoods. Many homes are priced above national medians, and you will often see prices at or above conforming loan thresholds.
If you have full, unused entitlement, the 2020 change means you can often buy higher-priced homes with no down payment, even when the price is above conforming limits. Your lender will still underwrite for income, credit, property condition, and reserves, and some lenders add their own guidelines for larger VA loans.
If you do not have full entitlement because you have an existing VA loan or entitlement that was not restored, county and conforming limits can still affect you. In those cases, lenders calculate how much of the VA guaranty is available and whether you must bring a down payment. A common outcome is a required down payment equal to 25 percent of the amount above the applicable threshold, but the exact figure depends on how much entitlement you have left.
Condominiums are common in San Diego purchase contracts. The VA requires the condo project to be on the VA-approved list for full VA financing. Many local projects are approved, but always verify the project’s status early so you can write a confident offer.
VA funding fee and your budget
The VA funding fee is a one-time charge that helps keep the program affordable for taxpayers. Most VA buyers pay it on purchase or refinance transactions. You can pay it in cash at closing or finance it into your loan amount, which slightly increases your monthly payment.
Some borrowers are exempt. Veterans receiving VA disability compensation, or who would be entitled to such compensation if not receiving retirement pay, are generally exempt from the fee. Certain survivors are also exempt. Because the fee varies by your service category, whether this is your first or subsequent use, and your down payment amount, ask your lender for an exact quote for your scenario. You can also review current guidance on VA.gov and confirm your status before you make an offer.
Strategies to win with a VA loan in San Diego
You can compete effectively with a VA loan in a high-cost, fast-moving market. Focus on preparation and clean offer terms that protect you without scaring off sellers.
Get real preapproval and verify COE
- Obtain a full VA preapproval from a lender experienced with VA underwriting in high-cost California markets. A prequalification letter is not enough.
- Pull your Certificate of Eligibility early. If entitlement is not fully restored, have the lender calculate any required down payment before you tour homes.
- Ask your lender to outline any overlays and provide a strong, signed preapproval letter that highlights your certainty of closing.
Write seller-friendly offers without losing protections
- Lead with a strong price and a reasonable closing timeline. VA offers can be just as competitive as conventional offers.
- Consider a higher earnest money deposit, held by escrow and refundable under valid contingencies.
- Do not request seller-paid costs that exceed VA rules. Sellers can pay reasonable closing costs and concessions, but they cannot pay your down payment.
- Be careful with contingency waivers. If you adjust appraisal or inspection terms, do so only after discussing risk with your lender and agent.
Address “jumbo” and over-limit homes
- Full entitlement: you can often move forward with no down payment even above conforming limits. Expect thorough underwriting and possible reserve requirements.
- Partial entitlement: you may need a down payment tied to the guaranty calculation. Your lender must compute this precisely.
- Consider bridging strategies, such as a small conventional second or a modest down payment to close a gap, but know that layered financing can add complexity.
- Shop lenders. Experience with high-balance VA loans in San Diego can make a difference in approvals and timelines.
Move fast without unnecessary risk
Work with a lender that orders the appraisal quickly and communicates clearly with the listing side.
Keep essential protections while signaling certainty. For example, keep your inspection contingency but shorten the inspection period if appropriate.
Work with VA-savvy local pros
- Choose an agent who understands entitlement math, VA appraisals, and local seller expectations. In San Diego, that expertise helps your offer get taken seriously.
- If you are eyeing condos, verify VA approval status before you write.
Real-world scenarios in San Diego
Scenario A: Full entitlement, $900k single-family home
With full entitlement, a qualified buyer can often purchase a higher-priced single-family home with no down payment, even when the price sits above conforming limits. Underwriting will focus on your income, credit, and reserves, and the property must meet VA appraisal standards. Preapproval and a clear COE position you to compete.
Scenario B: Existing VA loan, new $950k purchase
If you still have an active VA loan on another property, your remaining entitlement may be reduced. For a higher-priced purchase, you may need a down payment tied to the VA guaranty gap above county or conforming thresholds. Your lender should calculate the exact figure. In some cases, paying off the prior VA loan and restoring entitlement can expand options.
Scenario C: First-time Reservist buyer, downtown condo
Confirm the condominium project is on the VA-approved list before you write an offer. If the project is not approved, VA financing may be limited or unavailable, which affects your strategy. An experienced lender and agent can help you identify approved buildings.
Steps to verify limits, entitlement, and condo status
Use this quick checklist before you start touring homes:
- Pull your Certificate of Eligibility and confirm full or partial entitlement.
- Ask your lender to estimate your maximum purchase power and any required down payment if you have partial entitlement.
- Review the current VA funding fee for your scenario and whether you qualify for an exemption. Decide if you will pay it in cash or finance it.
- Confirm the current conforming loan limit for San Diego County for context. Lenders often reference it in underwriting and guaranty math.
- For condos, verify the building is on the VA-approved list before you submit an offer.
Key takeaways for San Diego VA buyers
- With full, unused entitlement, many buyers can purchase higher-priced San Diego homes with no down payment, subject to lender approval.
- County and conforming limits still matter if your entitlement is reduced, because they affect guaranty calculations and any required down payment.
- The VA funding fee is a one-time cost that can be financed. Many disabled veterans are exempt.
- In a competitive market, success comes from early COE verification, a strong VA preapproval, condo approval checks, and seller-friendly terms that still protect you.
- Always confirm entitlement, funding fee, and lender overlays with a VA-experienced lender before you commit to an offer.
If you want a guide who understands both the numbers and the neighborhoods, you are in the right place. As a former USAA loan underwriter, a Military Relocation Specialist, and a bilingual San Diego agent serving communities from Chula Vista and Bonita to La Mesa and beyond, I connect the dots between VA financing and winning offers. Ready to buy with confidence in San Diego County? Reach out to Edna Mitchell to get started today.
FAQs
What are VA loan limits for San Diego buyers in 2025?
- If you have full, unused entitlement, county limits do not cap your zero down purchase power, but lender underwriting still applies; partial entitlement buyers may face down payment needs tied to conforming thresholds.
Do I need a down payment with a VA loan above conforming limits?
- With full entitlement, often no; with reduced entitlement, you may need a down payment equal to part of the amount above the applicable threshold, based on the VA guaranty calculation.
How does the VA funding fee affect my monthly payment?
- If you finance the fee, it increases your loan balance and monthly payment slightly; ask your lender for an exact quote and check if you are exempt.
Can I use a VA loan to buy a San Diego condo?
- Yes, as long as the condo project is VA approved; confirm approval early to avoid delays or financing surprises.
What makes a VA offer competitive in San Diego?
- A full preapproval from a VA-experienced lender, verified COE, strong price, flexible closing, clear communication, and seller-friendly terms without unsafe contingency waivers.
