In California, homeownership is a dream for many people, but not everyone has access to a loan program as great as the VA home loan. So whether you are looking to settle down in the sprawling hillsides or sunny beaches, you’ll be thrilled with your new home.
With the average listing price of a home in California landing at $609,757, the VA loan’s signature $0-money-down benefit is a considerable advantage for California homebuyers.
See also: VA Loan Options for Other States
VA loans are made by private lenders and guaranteed by the Department of Veterans Affairs. Because private lenders make the loans and not the VA, you need to find a lender licensed in the state you plan to purchase or refinance.
For example, if you're purchasing a home in Temecula, CA, you'll need to find a lender licensed in California to do the loan.
VA borrowers in California should also consider the cost and impact of VA loan limits and property taxes when making their home purchase.
As of January 1, 2020, VA borrowers in California with their full VA loan entitlement are not restricted by VA loan limits. This means you can borrow as much as a lender is willing to lend without needing a down payment.
However, Veterans without their full VA loan entitlement are still bound to California’s VA loan limits.
|San Luis Obispo||$805,000|
|All other areas||$647,200|
Another consideration for VA buyers in California is property taxes. For certain VA buyers, there are exemptions.
You may be eligible for a property tax exemption in California if you meet one of the following conditions:
If you are required to pay property tax in California, the American Community Survey by the U.S. Census Bureau estimates you may pay the following in each county:
|County||Property Tax Rate|
|Contra Costa County||0.85%|
|Del Norte County||0.73%|
|El Dorado County||0.76%|
|Los Angeles County||0.72%|
|San Benito County||0.82%|
|San Bernardino County||0.81%|
|San Diego County||0.73%|
|San Francisco County||0.64%|
|San Joaquin County||0.85%|
|San Luis Obispo County||0.71%|
|San Mateo County||0.65%|
|Santa Barbara County||0.66%|
|Santa Clara County||0.73%|
|Santa Cruz County||0.66%|
View the graphic below to learn more about how VA loans work in California.