Buying a home in Southern California is never easy. Prices are high, inventory is low, and competition is fierce. For veterans and active-duty service members, the VA loan program can be a lifeline, but it also comes with unique rules and requirements that can surprise buyers and sellers. I saw this firsthand while helping a Navy veteran and her family purchase a home in SoCal. What nearly cost her the home was not financing or competition, it was peeling paint. What seemed like a small cosmetic issue turned into weeks of stress, multiple re-inspections, and almost losing the deal.
Since the program’s creation in 1944, VA loans have helped millions of veterans achieve homeownership. In fiscal year 2023 alone, the Department of Veterans Affairs guaranteed more than 400,000 loans nationwide, with nearly 80 percent of them used for home purchases. Collectively, the program has saved veterans over $70 billion in down payment costs. In Southern California, where the median home price in many counties sits between $750,000 and $900,000, this benefit can be the difference between renting indefinitely and finally owning a home.
The challenge in her case was passing the VA appraisal. The VA requires that homes meet “minimum property requirements,” which ensure properties are safe, sound, and sanitary. In theory, this is a great protection because it prevents veterans from taking on homes with hidden safety issues. In practice, though, it can feel overwhelming. Her property had peeling paint. To most buyers and sellers, it seemed like a minor cosmetic issue. But to the VA, peeling paint presented a health and safety concern. The seller repainted once, but the appraiser did not sign off. They tried again, still not good enough. It took three separate reappraisals and two rounds of additional work before the home finally met the VA standard. The deadlines kept getting pushed, everyone was stressed, and for a moment it felt like the whole deal was slipping away. Looking back, though, it showed exactly why these requirements exist. Instead of moving into a home with unresolved safety issues, she moved into one that was properly repaired and ready for her family.
That experience also highlighted some of the most important things veterans in Southern California should know before starting the VA loan process:
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Get your Certificate of Eligibility early. A VA-approved lender can usually pull this quickly so you do not lose time.
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Expect closing costs. Even with no down payment, plan for 2 to 6 percent of the loan amount for escrow, title, and insurance.
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The home must be your primary residence. VA loans cannot be used for rentals or vacation homes.
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Co-borrower rules are strict. Only a spouse or another veteran with entitlement can be on the loan.
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Appraisals can be tough. Be ready for repairs if the home does not meet VA minimum property requirements.
Even with these rules, the advantages of VA financing in SoCal are hard to beat. Veterans do not pay monthly mortgage insurance, which saves hundreds of dollars each month compared to FHA loans. VA interest rates are often lower than conventional financing, and the benefit can be reused multiple times as long as entitlement is restored. In a region where affordability is a constant challenge, these savings can make or break a veteran’s ability to compete for a home.
But the biggest lesson from this transaction was not about the COE, closing costs, or even the appraisal. It was about the importance of working with the right agent. An agent experienced with VA loans knows how to identify potential appraisal red flags before writing an offer. They know how to explain the VA process to sellers and listing agents, many of whom misunderstand it. And they know how to position VA buyers as strong, qualified, and competitive, even in multiple-offer situations. For this Navy veteran, that guidance was the difference between almost losing her dream home and moving into one she and her family now love.
VA loans are not complicated. They are specialized. They come with rules designed to protect veterans and benefits that make homeownership possible in markets where it might otherwise feel out of reach. For veterans in Southern California, the key is simple. Get your COE, partner with a VA-approved lender, and most importantly, work with an agent who understands this process inside and out. If you are a veteran thinking about buying in Southern California, know that your VA benefit is one of the most powerful tools available to you. With the right guidance, it can open the door to homeownership in one of the most competitive markets in the country.
Sources
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U.S. Department of Veterans Affairs. Annual Benefits Report FY 2023 – Loan Guaranty https://www.benefits.va.gov/REPORTS/abr.asp
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Consumer Affairs. VA Lender Statistics by State https://www.consumeraffairs.com/finance/va-lender-statistics-by-state.html
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Veterans United. VA Loan Statistics and Trends https://www.veteransunited.com/education/tools/stats/
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MarketWatch. A VA program helped thousands of struggling veterans keep their homes https://www.marketwatch.com/story/a-va-program-helped-thousands-of-struggling-veterans-keep-their-homes
- Investopedia. VA Loan vs Conventional Loan https://www.investopedia.com/va-loan-vs-conventional-loan-8725748
