Loading
Los Angeles home prices push most buyers toward jumbo territory, but VA loans have no maximum limit in high-cost counties. You can finance a $1.2M home in Silver Lake or Mar Vista with zero down if your income supports it.
LA County qualifies as a high-cost area under VA guidelines. That means the conforming limit doesn't cap your loan amount—your debt-to-income ratio and residual income do.
Most VA buyers here use the program for condos in DTLA, single-family homes in the Valley, or duplexes in Highland Park. Competition runs hot, but sellers respect VA financing more than they did five years ago.
You need a Certificate of Eligibility from the VA and typically 580+ credit, though most lenders prefer 620. No down payment required, and the VA funding fee (1.4%-3.6%) can roll into the loan.
Income matters more than credit here. Lenders check debt-to-income ratios and residual income—the cash left after all debts and housing costs. A family of four in LA needs about $1,158/month in residual income.
Active-duty service members, veterans with qualifying service, National Guard and Reserve members, and some surviving spouses qualify. First-time and repeat use both work if you have remaining entitlement.
Not all lenders handle VA loans above $1M well. Some cap their internal risk tolerance at conforming limits even though VA allows higher. We work with 15-20 lenders who regularly close $1M+ VA loans in LA.
Processing times run 25-35 days with experienced VA lenders. Appraisals take longer here—count on 10-14 days just for the appraisal. The VA requires stricter property standards than conventional loans.
Wholesale lenders often beat retail banks on rates by 0.25%-0.5%. We see this daily. A direct VA lender might quote 6.5% while our wholesale channels come in at 6.125% on the same scenario.
Sellers in competitive LA neighborhoods worry about VA appraisals killing deals. Counter this by getting pre-approved with full underwriting—not just pre-qualified. Show you're serious and funded.
The funding fee scales with your down payment and prior VA loan use. First-time users pay 2.15% with zero down, 1.5% with 5% down. Disabled veterans pay nothing. This adds $21,500 to a $1M loan but spreads over 30 years.
Watch out for HOA properties. The VA requires at least 50% owner-occupancy in condo buildings. Many newer DTLA towers don't hit that threshold yet. Always verify before writing an offer.
FHA loans require 3.5% down—$35K on a $1M home. VA requires zero. Both charge upfront fees, but FHA adds monthly mortgage insurance for the loan's life. VA has no monthly MI.
Conventional loans need 5%-20% down in this price range. A 10% down conventional loan on $900K means $90K upfront. VA means $0 upfront plus closing costs.
Jumbo loans demand 10%-20% down and reserve requirements—often six months of payments in the bank after closing. VA has no reserve requirement for most buyers.
LA's property tax runs about 1.1% of purchase price annually. On a $950K home, expect $10,450/year in taxes. The VA calculates this into your debt ratios differently than most loans—it helps qualification.
Earthquake insurance isn't required but runs $800-$2,000/year for most homes. The VA counts this in housing costs if you carry it, which affects your residual income calculation.
Traffic patterns matter for VA appraisals near LAX, rail lines, or freeways. Appraisers flag noise issues that conventional appraisals ignore. Homes under flight paths sometimes need sound testing.
Yes—LA County has no VA loan cap. Your income must support the payment and you need enough residual income. Lenders verify debt ratios and cash flow, not purchase price.
More now than before, especially with full underwriting pre-approval. Show proof of funds for closing costs and a strong appraisal contingency timeline. Competitive offers work.
First-time use with zero down costs 2.15%, or $21,500 rolled into the loan. Five percent down drops it to 1.5%. Disabled veterans pay nothing.
Only if the building is VA-approved or hits 50% owner-occupancy. Many new towers fail this test. We verify approval status before you write offers.
25-35 days with experienced lenders. Appraisals take 10-14 days alone here. Rush timelines under 21 days rarely work in LA's market.
Not for most single-family purchases. Lenders may require reserves on high debt ratios or investment properties. Conventional and jumbo loans always demand six months reserves.
VA Loans in Los Angeles