San Diego VA Mortgage Loan Guide: Updated for 2025

San Diego County has a military population of nearly 100,000 people. That means there are a lot of servicemen and women in the area who could benefit from a VA-backed home loan.

We are passionate about this program, so we’ve created a San Diego VA mortgage loan guide for 2025. It explains several important aspects of this program, including minimum requirements, application process, and more.

The VA Loan Program at a Glance

Let’s start with the basics. What is a VA loan exactly, and how does this program work?

VA loans are a type of government-backed mortgage designed for current military members, veterans who have served in the past, and certain surviving spouses.

The actual funding comes from a mortgage lender in the private sector, the same as other types of home loans. But the lender receives a guarantee from the government that protects them from financial losses when a borrower cannot repay the debt.

In San Diego, the following groups are typically eligible for VA loans:

• Active-duty military who have served for at least 90 days.
• National Guard and Reserve members who have completed at least six years of regular service or 90 days of active duty.
• Surviving spouse of a service member who died in the service or due to a service-related disability.

VA Loans Are Very Popular in San Diego

This home loan program is managed by the U.S. Department of Veterans Affairs. Each year, the department publishes a report with VA loan data for every county in the United States.

San Diego County usually ranks at the top of this list, with more VA loan usage than almost every other county in the United States.

Counties with the highest number of VA loans in past years:

• San Diego County, California
• Maricopa County, Arizona
• El Paso County, Colorado
• Clark County, Nevada
• Riverside County, California

The metropolitan areas surrounding these counties have two things in common: (1) a strong military presence with bases or other facilities, and (2) a large population of military veterans.

The San Diego area, in particular, has a huge military population. It’s home to a number of bases including Naval Base San Diego, Marine Corps Air Station Miramar, Naval Air Station North Island, Camp Pendleton, and more.

Main Benefits: No Down Payment, Flexible Criteria

With a median home price that’s currently above $1 million, San Diego has become one of America’s most expensive real estate markets.

Because of this, a lot of home buyers struggle to come up with the funds needed for a down payment, even though they could manage the monthly mortgage payments.

However, those borrowers who use a VA loan to buy a house in San Diego could finance the entire purchase price. This means eligible home buyers can avoid the down payment burden altogether.

This is a unique advantage you probably won’t find with most other mortgage programs. It’s a benefit reserved for military members, veterans, and their families.

Here’s a complete list of VA loan benefits:

• You could finance 100% of the home purchase price with no down payment.
• You can avoid paying mortgage insurance, which is usually required with low down payments.
• VA loans are one of the easiest types of mortgage loans to qualify for.
• You could potentially qualify for the program even if you’ve had credit problems in the past.
• You can use your benefit over and over throughout the years, for future home purchases.

Clearing Hurdles on the Path to Homeownership

Let’s take a closer look at one of the key benefits mentioned above.

By using a VA loan, a home buyer in San Diego could finance up to 100% of the purchase price. This means they do not have to make a down payment on the house, unless they want to.

This benefit applies to all borrowers nationwide. But it’s particularly helpful in expensive real estate markets like Southern California, where the median home price is well above the national average.

Let’s do some quick math to illustrate this benefit:

• The current median home price in San Diego is approximately $1 million.
• The minimum down payment for a conventional loan is usually around 3%.
• The minimum down payment for an FHA home loan is 3.5%.
• On a median-priced home, these programs would require at least $30,000 down.

Some loan programs require even bigger down payments, especially for expensive properties. Many home buyers in San Diego cannot afford this kind of upfront investment, even though they could afford the monthly payments.

How to Buy a Home in San Diego With a VA Loan

You do some research and decide that the VA loan program is the right financing option for you. Now you’re ready to buy a home in San Diego using a VA-guaranteed mortgage loan. What’s next?

Here’s how the process usually works:

1. Use the VA website to determine that you are eligible for the program.
2. Request your Certificate of Eligibility through the VA.gov, or let us do it for you.
3. Get pre-approved to find out how much you can borrow toward a home purchase.
4. Provide financial documents such as tax returns, bank statements, and W-2 forms.
5. Start house hunting. Focus on well-maintained homes that will meet VA guidelines.
6. Make an offer, negotiate the details with the seller, and sign a purchase agreement.
7. Wait for the home appraisal to be completed (required for all VA loans).
8. Decide whether or not you want to have a home inspection (optional for VA loans).
9. Wait for the mortgage underwriter to finish their review and clear you for closing.
10. Attend the closing process, sign all of the finalized documents, and get your keys!

Note: The home buying process in San Diego can vary from one buyer to the next. So some of these steps might not apply to your specific situation.

Bridgepoint Funding: Your VA Loan Specialist

Want to learn more about the VA loan program or apply for one? We can help.

Bridgepoint Funding has been serving home buyers in California for nearly 20 years. We specialize in the VA loan program and regularly work with home buyers in the San Diego area in particular.