VA loans might be an OK Deal on a Condo in San Diego but you might want to check out some other programs. I say this for a couple of reasons
1- loans limit of 240K might be restrictive in terms of you being able to buy a Single Family house
2- Upfront Fee on the loan is 2.15%
3- Interest rate 6%+
If you are buying in California, have enough for a small down payment, are a first time homeowner, and meet the income requirement for the CHAFA loan (www.calhaf.ca.gov) you might be better off with this as your primary loan program.
Loan limits
VA loans definitely aren’t for everyone. While the maximum guaranteed — $240,000 — will buy a lot of house in most parts of the country, potential buyers in high-priced markets such as California or Manhattan may have to go another route for their financing.
Funding Fees
Note: The funding fee for regular military first time use from 1/1/04 to 9/30/04 is 2.2 percent. This figure drops to 2.15 percent on 10/1/04.
Type of Veteran Down Payment First Time Use Subsequent Use for loans from 1/1/04 to 9/30/2011
Regular Military None
5% or more (up to 10%)
10% or more 2.15%
1.50%
1.25% 3.3% *
1.50%
1.25%
