Downtown San Diego Condos: VA Loans Are Available

Sunny San Diego is a place that many people dream of moving to, and for many veterans with bases such as a number of San Diego Naval Bases located within city limits and Camp Pendleton within close proximity, the city couldn't be in a better location. However, due to the sunny and mild weather and beach location, real estate in San Diego hasn't always been affordable for most veterans – especially in the downtown area.

Prior to the burst of the real estate bubble, veterans interested in purchasing a property in downtown San Diego were usually out of luck. Many  properties were not VA approved, and military members were forced to step outside of the downtown area in order to find an affordable home. However, in the last few years, the number of VA approved properties in the San Diego high-rise condo market has increased dramatically – providing military members with a lending option that is much more accessible and cost-effective than conventional programs, and even FHA lending. 

Why Choose A VA Home Loan?

While the FHA home loan is also partially backed by the government, the guarantee offered by the VA for the VA home loan is greater allowing interested borrowers to benefits from money saving perks not found with either conventional lending or FHA loans. Such benefits include:

•  No down payment
•  High loan limits
•  No need for private mortgage insurance

For those interested in purchasing a property within San Diego county, they may purchase a condo up to the purchase price of $477,000 with zero money down. Currently, the median sales price for the country is around $417,000 so with the high loan limit of the VA loan, eligible military members still have adequate wiggle room for their home purchase.  There are higher VA loan limits with downpayments but those loans are on a case by case basis and we can answer your questions if you give us a call.

Is it Easier to Obtain a VA Home Loan?

There is no denying that securing a mortgage loan has become even more difficult in recent years. With the collapse of the housing market, many lenders tightened their standards making securing financing nearly impossible for some.

Conventional lenders are amongst some of the worst when it comes to strict lending requirements, and the high credit score and 20 percent down payment generally needed isn't always easy to obtain. The FHA lending program's requirements are a bit more lax, but there is still the requirement of a down payment, which isn't always easy to save for.

The VA Home loan, however, has no credit or income requirements and no need for a down payment, which makes it one of the easier government backed programs for veterans to qualify for and obtain. Veterans must simply meet specific service requirements and submit their Certificate of Eligibility. Lenders may impose credit and/or income requirements so for any additional questions regarding the VA Home Loan or eligibility, please contact a VA Home Loan specialist.

Kevin Pearia is a mortgage commentator for Veterans United Home Loans, the nation’s leading dedicated provider of VA Home Loans.

This is a series of article by Sharyn and Victoria Crown, Downtown San Diego real estate agents.