Home Buying in San Diego>Question Details

Jameskerry41, Home Buyer in San Diego, CA

I just received my VA cert of eligibility. On it it states $36,000. Is this what everyone else recieves on their COE? What if the house is $300K?

Asked by Jameskerry41, San Diego, CA Mon Nov 14, 2011

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The $36,000 in entitlement on your certificate of eligibility represents the basic entitlement that all veterans have, in addition the $36,000 in basic entitlement there is another $68,250 in 2nd tier entitlement. Lenders require the veteran to have entitlement representing at least 25% of the amount that the veteran is trying to obtain 100% financing on. $36,000 + $68,250 is 25% of $417k, so anywhere in the U.S. a veteran can purchase up to $417k sales price with 100% financing. In certain high cost areas, such as San Diego County, there is extra 2nd tier entitlement, which is how 100% financing to a higher amount is possible (San Diego has enough extra 2nd tier entitlement to be able to get 100% financing up to $537,500).
2 votes Thank Flag Link Thu Nov 17, 2011
The $36,000 is the maximum amount that the VA will guarantee the lender if your loan should go into default. This guarantee is in lieu of mortgage insurance.
The VA loan program is one of the best benefits available to Vets. My wife and I used it to purchase our first home many years ago.
If you would like help finding a home using your VA eligibility please let me know.

Jerry Heard
Your Broker
The San Diego Property Shop http://www.TheSanDiegoPropertyShop.com
Direct 619-920-9796
Office 619-269-5545
Fax 619-269-9168
1 vote Thank Flag Link Mon Nov 14, 2011
excellent answer by shane milne.
0 votes Thank Flag Link Fri Dec 9, 2011
Hi James,

VA loans are pretty common here in San Diego County, and really not all that complicated. I have some great lenders I work with that can easily close a VA loan in 30 days or less. A lender will be able to help you determine what you can qualify for, and I can help you find a home that meets VA criteria, then work on getting it accepted, even with what the seller is required to pay. I've helped VA buyers with homes from $250k and up.

What type of properties are you looking at, and where are you hoping to buy?

0 votes Thank Flag Link Thu Nov 17, 2011
Dear James,

Do not worry, this amount is the maximum entitlement one can receive thru VA financing. It is the maximum amount that VA will guarantee the lender in the event of a default. If you can, take advantage of the current market conditions and low interest rates. The cost for a VA loan is minimal too.

In San Diego county you can finance a loan with zero down payment via VA up to $537,500; if your loan amount exceeds the maximum at 100%, feel free to ask your current lender what that amount would be. Best regards.
0 votes Thank Flag Link Tue Nov 15, 2011
Hello again James!

You received some great answers to your question. I wanted to tell you about another GREAT VA benefit that is rarely talked about, that I find very exciting, especially now in this market with lower home prices. You can use your VA benefit to buy a 2nd property as long as you are moving into the new one. Let's say you were to purchase a $100K condo today, and then next year you used your benefit with zero down, again, to purchase a $300K house. As long as you are going to rent your condo out and move into the new house, you are able to maximize the VA Benefits. Now you are a Homeowner and an Investor!

Good to see you again on Trulia James~

Chris Gorno
Web Reference: http://www.ChrisGorno.com
0 votes Thank Flag Link Tue Nov 15, 2011
Robert and Jerry are correct. The VA loan is the best loan out there, 0 down and the seller could pay your closing cost up to 4% of the sales price......pretty nice yes? Oh don't forget there's no private mortgage insurance (PMI) and you now need to update your COE every 90 days which you can do on line.

The key is work with a realtor who not only understands how the VA works but has done a recent VA transaction. You also need a lender who is up to date on doing VA loans. I just closed, Nov 7th, a VA loan with 0 down and the seller agreed to pay 2% of the closing cost and I'm working on another VA purchase with 0 down no closing cost. Feel free to call if you have some questions 619-269-2266 ext 229.......good luck.
0 votes Thank Flag Link Tue Nov 15, 2011
I should suggest that your next two stops,
are at the local VA office; they can explain things like this and others too. They have always been great to me, as a Realtor and as a Buyer. They have no axe to grind; they are there to help.

The second would be to find a Reator to help you: You can search right here on Trulia by looking to the right and down, for the "Find a VIP"; you can enter San Diego and search Agents, looking at their PROFILE and EXPERIENCE. You already know that they are helpful as they donate time to help people on Trulia.

I can recommend a Loan Officer who is in San Diego: I have worked with her here on Trulia and can recommend her without reservation: You can look up her PROFILE too. Deborah Garvin, at http://www.loanmonarch@gmail.com

Good luck and may God bless
0 votes Thank Flag Link Mon Nov 14, 2011
Yes $36k is what everyone who has full VA eligibility gets. If you in San Diego you can go 100% financing to $537,500 (which is the San Diego county VA loan limit for zero down).
Web Reference: http://www.socalvaloans.com
0 votes Thank Flag Link Mon Nov 14, 2011
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