The short answer: If you served, a VA-backed loan can let you buy a California home with no down payment and no mortgage insurance. If you have your full entitlement, the VA sets no loan limit; you still have to qualify with the lender, and the appraisal has to support the price. Unless you're exempt, you pay a one-time VA funding fee; veterans who receive VA disability compensation are exempt. And if you're rated 100% disabled or unemployable, California's disabled veterans' property tax exemption can take up to $180,671 off your home's assessed value this year.

As of November 9, 2026. Fee and exemption figures are from the Department of Veterans Affairs and the California State Board of Equalization; loan limits are from FHFA. This is general education, not a loan offer.

Who qualifies for a VA home loan?

Veterans, active-duty service members, many National Guard and Reserve members, and some surviving spouses. The VA's minimums for active-duty service include at least 90 continuous days for current service members and, for veterans who served from August 2, 1990, onward, generally 24 continuous months or the full period you were called to active duty (at least 90 days). Guard and Reserve members can qualify with 90 days of qualifying active duty or six creditable years of service (VA eligibility requirements). Surviving spouses may qualify if they receive certain Dependency and Indemnity Compensation.

Proof comes from a Certificate of Eligibility (COE). You can request it online through VA, or your lender can pull it for you, usually in the first conversation. To buy with the loan, you also have to meet VA and lender credit and income standards, and you have to live in the home (VA purchase loan). That means a VA loan is for a primary residence, not a rental, though it can be used on a property of up to four units that you live in.

Is there a VA loan limit in California?

For many veterans, no. VA says that if you have full entitlement, "you don't have a loan limit," as long as you can afford the loan and the appraisal supports the purchase price. On larger loans, VA's guaranty usually covers 25% of the amount the lender is willing to lend, which is why lenders can go well past the old guaranty figures without a down payment (VA loan limits).

It's different if part of your entitlement is still tied up, for example because you kept a home you bought with an earlier VA loan. Then your remaining entitlement is figured from the county's conforming loan limit, and the VA notes that most lenders want your entitlement, a down payment, or both to cover at least 25% of the loan. For 2026, FHFA's one-unit limit is $832,750 in most of the country and up to $1,249,125 in high-cost areas, which include much of coastal California (FHFA, 2026 loan limits). FHFA announced the 2026 limits on November 25 last year, so 2027 figures are likely close; I wrote about what the 2027 limits could mean for California buyers.

What does a VA loan cost up front?

Two things stand out. VA loans don't require private mortgage insurance, and there's no down payment as long as the price isn't above the appraised value (VA purchase loan). In exchange, unless you're exempt, you pay a one-time funding fee, which can be rolled into the loan. Here's VA's current table for purchase and construction loans:

VA funding fee on a purchase loan, by down payment

  • First use
  • After first use
2.15%3.3%Less than 5% down1.5%1.5%5% or more down1.25%1.25%10% or more down
Percent of the loan amount. Veterans receiving VA disability compensation, and some others, are exempt. Source: U.S. Department of Veterans Affairs, VA funding fee and closing costs (rates effective April 7, 2023; page updated October 5, 2026)

You don't pay the funding fee if you receive VA compensation for a service-connected disability, are eligible for it but receive retirement or active-duty pay instead, are a surviving spouse receiving DIC, have a proposed or memorandum disability rating before closing, or are an active-duty member with a Purple Heart (VA funding fee and closing costs). If you think you qualify, make sure your lender's paperwork reflects it before closing.

Sellers can help, too. VA caps seller concessions at 4% of the home's reasonable value, but that cap doesn't limit seller credits toward ordinary closing costs. In a slower market, that's a real negotiating tool (more on using seller credits this fall).

What is California's disabled veterans' property tax exemption?

It's a state benefit, separate from the VA loan, and it applies to your home whether or not you used a VA loan to buy it. If you're rated 100% disabled, or paid at the 100% rate because you're unemployable (or meet the blindness or loss-of-limb tests), you can exempt part of your home's assessed value from property tax. A lower-income version is larger. Unmarried surviving spouses can also qualify (BOE, Disabled Veterans' Exemption). The amounts rise every year with inflation:

California disabled veterans' exemption amounts

  • Basic exemption
  • Low-income exemption
$180,671$271,0092026 lien date$185,889$278,8362027 lien date
Reduction in assessed value. The low-income amount requires household income at or below $81,131 (2026) or $83,474 (2027). Source: California State Board of Equalization, Letter to Assessors No. 2026/019 (May 22, 2026)

Those are from the BOE's letter to county assessors (BOE Letter No. 2026/019). The basic exemption is a one-time filing; the low-income version must be claimed every year, and it's 100% if filed between January 1 and February 15, 90% through December 10, and 85% after that. If you're buying, you must move in within 90 days, and to get the full exemption for the first year you file by the later of 90 days after you become eligible or the following January 1. You file with your county assessor (form BOE-261-G).

What about CalVet home loans?

California has its own program, CalVet Home Loans, which is a different loan from a VA-backed loan. In January, the state approved a $150 million bond allocation for it, expected to help about 363 buyers; the State Treasurer describes eligibility as at least 90 days of military service with an honorable discharge, or current honorable service, with income limits that vary by county (California State Treasurer, January 16, 2026). CalVet's terms differ from VA's, so if you're curious, compare them side by side with a VA loan before you make an offer.

Getting ready to buy with your VA benefit

  1. 1

    Before you shop

    Get your COE

    • Request it online, or have your lender pull it
    • Restore used entitlement if you sold a prior VA home
  2. 2

    Before you shop

    Check the funding fee

    • Confirm whether a disability rating makes you exempt
    • Know whether this is your first use
  3. 3

    Writing the offer

    Use seller help

    • Concessions up to 4% of reasonable value
    • Ask for credits toward closing costs
  4. 4

    After you move in

    File for the exemption

    • If you qualify, file BOE-261-G with your county assessor
    • Low-income version: refile each year by Feb 15
General steps; your lender and county assessor set the specifics. Source: U.S. Department of Veterans Affairs; California State Board of Equalization

Reading from outside California? The VA rules above are national. The property tax exemption and CalVet are California-only; most states have their own versions.

Derek\'s take

A lot of veterans assume a VA loan "doesn't work in California" because of prices or loan limits. With full entitlement, it often works better than people expect, and the funding fee exemption and property tax exemption can make a real difference for disabled veterans. The details, like whether your entitlement is fully restored, matter a lot. If you'd like to go through your COE, your entitlement and how a VA loan compares to your other options, book a call with me. Thirty minutes, no credit pull, no obligation. And thank you for your service.

Frequently asked questions

Is there a VA loan limit in California in 2026?

Not if you have full entitlement. VA says borrowers with full entitlement don't have a loan limit, as long as they qualify and the appraisal supports the price. If some entitlement is still in use, your remaining entitlement is based on the county's conforming loan limit, up to $1,249,125 in high-cost areas in 2026.

Do I have to pay the VA funding fee?

Unless you're exempt, yes. It ranges from 1.25% to 3.3% of the loan on a purchase, depending on your down payment and whether you've used the benefit before. Veterans receiving VA disability compensation, eligible surviving spouses receiving DIC, and some others are exempt.

Can I use a VA loan more than once?

Yes. VA says you can reuse the benefit after selling or refinancing a VA-backed home, and you can apply to restore used entitlement. If you keep a prior VA-financed home, you may still be able to buy again using remaining entitlement.

How much is California's disabled veterans' property tax exemption?

For the 2026 lien date, the basic exemption is $180,671 of assessed value, and the low-income exemption is $271,009 for households with income of $81,131 or less. For 2027, they rise to $185,889 and $278,836.

Can I use a VA loan to buy a rental property?

No. You must live in the home you buy with a VA loan. It can be a property of up to four units, as long as one of them is your home.

This article is general education, not tax, legal or financial advice, and not an offer of credit or a commitment to lend. Eligibility for VA and CalVet loans and for the property tax exemption is determined by those agencies, your lender and your county assessor.

Sources

This article is general education, not a commitment to lend, an offer of credit, or tax, legal or investment advice. All loans are subject to credit approval, income and asset verification, and property appraisal. Programs, rates, terms and limits change without notice; figures are current as of the publish date. Derek Shao, NMLS #242117, CA DRE #01358261. Financial Dynamics, Inc. DBA Emory Financial, Company NMLS #393986. Equal Housing Opportunity.