Are VA Loans Still the Best Option for Military Buyers Relocating to San Diego in 2025?
TL;DR Summary
VA loans remain the top financing tool for San Diego-bound military families in 2025. - Zero down payment, no loan limits (with full entitlement), and competitive rates are big wins. - New 2025 change: VA buyers can now pay buyer-broker fees, unlocking access to top agents. - San Diego home prices make VA benefits even more essential. - VA offers flexibility for multi-family purchases and future rentals.
Why Military Families Still Favor VA Loans in San Diego
San Diego remains one of the top relocation markets for active-duty and retired military. Between major bases like Naval Base San Diego, Camp Pendleton, and MCAS Miramar, it’s no surprise that military families continue to flood the housing market here.
But in a metro where the median home price hovers near $1 million, affordability is a major concern, especially for buyers with PCS orders. That’s where VA loans shine.
Key VA Loan Benefits in 2025
Zero down payment: On a $950,000 home, this saves over $30,000 upfront.
No loan cap with full entitlement: In 2025, eligible vets can borrow beyond $1M.
No PMI: This alone can cut monthly costs by $300 to $500.
Lower credit thresholds: Easier approval compared to conventional loans.
Flexible usage: Duplex and multi-family purchases allowed if one unit is occupied.
What’s New for VA Loans in 2025?
Game-Changing Update: Veterans Can Now Pay Buyer-Broker Fees
Historically, VA buyers couldn’t cover their own broker fees, limiting access to top realtors. That restriction is gone in 2025. Vets can now pay out-of-pocket for a buyer agent.
Why this matters: It levels the playing field. Buyers can now work with a highly rated San Diego realtor or top San Diego real estate agent without worrying about compliance hurdles.
Market Insight: San Diego VA Buyers Stay Competitive
Some sellers hesitate when they see “VA loan” on an offer. But according to a 2024 Urban Institute study, VA loans actually have the lowest denial rates of any loan type.
VA denial rate: 9.7%
Conventional loan denial: 14.6%
This proves VA buyers are financially solid and deserving of seller trust.
Seller Incentives for VA Loan Buyers
In today’s competitive market, sellers may offer credits or concessions to attract VA buyers. These can cover closing costs, repairs, or even rate buydowns. With the average home in San Diego pushing six figures in costs, this can mean significant upfront savings.
Plus, VA appraisals ensure properties meet quality standards, which gives both buyers and sellers peace of mind. Homes that pass VA appraisal often become easier to sell in the future, increasing long-term value.
Pros and Cons of Using a VA Loan in San Diego
How Military Buyers Use VA Loans for Long-Term Gains
Many PCS buyers don’t just see their San Diego home as a place to live. They see it as an investment. Here’s how:
Buy a duplex: Live in one unit, rent the other (VA-eligible!)
Turn into rental later: After moving bases, lease it for cash flow
Sell with equity: VA homes in San Diego tend to appreciate steadily
True Story: Navy Family Builds Equity After Two PCS Moves
One of our clients, a Navy family relocated from Norfolk, used their VA loan to buy in Clairemont. They stayed three years, gained over $210,000 in equity, then rented the home after moving to Hawaii. Now, the rent covers their mortgage, and the home is appreciating.
Building Wealth With Smart VA Loan Moves
Savvy military families use their VA benefits as part of a long-term strategy. Buying strategically in areas poised for growth, like San Marcos, Clairemont, or Chula Vista, can yield impressive gains.
For example, a Marine family recently bought a fixer-upper in Escondido using their VA loan. They lived in it while doing modest renovations, then sold it two years later for a $140,000 profit. That money helped them put a conventional down payment on a new home in Temecula, no longer needing VA financing.
Best Areas for VA Buyers in 2025
Clairemont & Serra Mesa: Affordable, central, close to bases
Chula Vista: Popular for Navy families with newer builds
Oceanside & Vista: Close to Camp Pendleton, more house for the money
Scripps Ranch & Mira Mesa: Quiet, family-friendly, strong schools
Work with a San Diego relocation realtor who knows which neighborhoods align with base access, schools, and lifestyle goals.
Exploring Gated and Pet-Friendly Communities
Many military families have pets or need fenced yards. Communities in Santee, 4S Ranch, and Rancho Bernardo offer pet-friendly HOA policies and larger lot sizes. A knowledgeable San Diego real estate agent can steer you toward the most VA-compliant properties with these features.
Can You Use a VA Loan More Than Once?
Yes. Many buyers think a VA loan is a one-time benefit. In fact, you can:
Restore entitlement after selling a home
Reuse partial entitlement if you’re still holding a VA-financed property
Refinance into another VA loan via the IRRRL (streamline refinance)
Be sure to consult a trusted San Diego realtor and VA-savvy lender to map your strategy.
More Pro Tips for VA Buyers
Get pre-approved early: It shows sellers you’re serious and ready.
Work with a military relocation realtor: They understand timelines, benefits, and PCS challenges.
Ask about lender incentives: Some lenders offer discounted rates or appraisal credits for VA buyers.
One last note: always confirm that your realtor has experience closing VA transactions. An experienced VA agent will know how to advocate for your offer, structure contingencies, and navigate lender-specific rules. Don’t just hire any San Diego real estate broker. Hire one who’s VA-seasoned.
FAQs About VA Loans in San Diego
Q: Can I use a VA loan to buy a home over $1 million in San Diego?
A: Yes, as long as you have full entitlement, there are no loan limits in 2025.
Q: Are sellers hesitant to accept VA offers in San Diego?
A: Some are, but education is key. VA buyers are highly qualified and have lower default rates than conventional buyers.
Q: Can I buy a multi-family property with a VA loan?
A: Yes, up to 4 units, as long as you live in one unit.
Q: Is it true I can now pay my own buyer’s agent with a VA loan?
A: Yes. This 2025 update means you can hire the best San Diego realtor without restrictions.
Q: What if I get relocated again?
A: You can rent out your San Diego home and even use your VA loan again elsewhere with remaining entitlement.
Q: How fast can I close with a VA loan?
A: VA closings are typically just as fast as conventional, usually 21 to 30 days with the right team.
Q: Are there special programs for disabled vets?
A: Yes. Many are exempt from the VA funding fee and may qualify for property tax reductions in California.
Ready to Buy with Confidence?
Let us help you make the most of your VA benefits. Whether you’re PCSing to San Diego or upgrading your current home, Scott Cheng is your go-to San Diego real estate expert.
Scott Cheng | Best San Diego Realtor & Broker
Call or text (858) 405-0002 • scott@scottchengteam.com
