San Diego’s Military Presence Drives VA Loan Demand
San Diego’s housing market remains one of Southern California’s most competitive in 2025. The median home price hovers around $937,000, making affordability a major concern. For many veterans and active-duty service members, VA loans are the key to homeownership. Lending Bee offers VA financing designed to meet the unique needs of military families living in or relocating to San Diego.
San Diego hosts several major military bases, including Naval Base San Diego, Camp Pendleton, and MCAS Miramar. This strong military presence creates constant housing demand from service members and veterans. As of mid-2025, VA loans account for over 16% of all mortgaged purchases in the region. That figure is nearly double the national average, showing how vital VA loans are in San Diego’s real estate landscape.
Lending Bee understands this market well. We help military borrowers navigate the process smoothly, from pre-approval to closing. Our team ensures that each client maximizes their VA benefits in this high-cost region.
What VA Loans Offer in 2025
No Down Payment Required
One of the biggest advantages of VA loans is the ability to purchase a home with no down payment. This is especially valuable in San Diego, where a 20% down payment could exceed $180,000. With Lending Bee, qualified buyers can secure a home without having to save for years.
No Private Mortgage Insurance (PMI)
Unlike FHA or conventional loans, VA loans do not require PMI. This reduces monthly payments and makes homeownership more affordable over the life of the loan. In a market like San Diego, this difference can mean hundreds of dollars in monthly savings.
Competitive Interest Rates
VA loans typically offer lower interest rates than other mortgage types. In early 2024, the average 30-year VA loan rate in San Diego was about 5.62%, lower than the national VA average. Lower rates help keep monthly payments manageable, even with higher home prices.
Flexible Credit and Appraisal Standards
The VA loan program is more lenient when it comes to credit score requirements and property standards. This flexibility helps more military families qualify, even if they have less-than-perfect credit or are purchasing older homes.
2025 Policy Change: Buyer-Broker Fees Now Allowed
A key update in 2025 is that VA buyers can now legally pay buyer-broker fees. Previously, these fees could not be paid directly by VA buyers, which limited their ability to work with experienced agents. Now, veterans have the freedom to choose top-tier real estate professionals to guide their purchase.
Lending Bee supports clients in understanding this change and structuring their offers accordingly. We work closely with real estate agents who are well-versed in VA guidelines, ensuring a smooth transaction.
Loan Limits and Entitlement in High-Cost Areas
Although the VA does not set a maximum loan amount, lenders do. In San Diego County, the conforming limit for 2025 is $1,077,550. However, borrowers with full VA entitlement can exceed that limit with no down payment, provided the lender approves the loan.
Lending Bee helps clients determine their entitlement and find homes within their borrowing capacity. We explain how entitlement works and guide borrowers through scenarios involving restored or second-tier entitlement.
Making the Most of VA Loans in San Diego
Multi-Unit Properties
VA loans can be used to purchase up to four-unit properties, as long as the buyer lives in one unit. This option allows buyers to generate rental income, which can offset mortgage costs. In a city like San Diego, where rents are high, this can be a smart financial move.
Target Neighborhoods for VA Buyers
Areas such as Clairemont, Mira Mesa, Oceanside, Chula Vista, and Escondido are ideal for VA buyers. These neighborhoods offer proximity to military bases, solid school districts, and potential for home value appreciation. Lending Bee helps clients evaluate each area’s suitability based on their lifestyle and investment goals.
IRRRL and Reuse of Benefits
The VA Interest Rate Reduction Refinance Loan (IRRRL) makes it easy for current VA borrowers to refinance at a lower rate. Additionally, VA benefits can be reused after a home is sold or paid off. Lending Bee provides clarity on how and when these options are available.
The Competitive Edge of VA Buyers
Some sellers mistakenly believe VA loans are harder to close. In reality, VA buyers face lower denial rates than conventional borrowers. VA approval denial rates average around 9.7%, compared to 14.6% for conventional loans. This data proves that VA buyers are just as competitive.
Lending Bee prepares each client to submit a strong offer. Our pre-approval letters carry weight, showing sellers that our buyers are serious and qualified. We also help structure offers to include seller concessions, rate buydowns, or closing cost credits.
San Diego’s Market Outlook and VA Loan Trends
San Diego continues to face low inventory and high demand. Even as mortgage rates stabilize in the 6% range, prices remain elevated due to limited supply. This environment makes VA loans more appealing, as they reduce upfront costs and offer financial flexibility.
Lending Bee stays ahead of market shifts. We continuously monitor interest rate trends, housing inventory, and VA policy changes to provide our clients with the most up-to-date advice.
Building Equity Through VA Homeownership
Many VA buyers see their home not just as a residence but as an investment. For example, one military family purchased a fixer-upper in Escondido, made modest renovations, and sold the home two years later with over $140,000 in equity. Another family in Clairemont gained more than $200,000 in value before turning their property into a rental.
Lending Bee supports these strategies. We advise clients on buying smart, managing renovations, and preparing for future moves or deployments. Our goal is to help military families build long-term wealth through real estate.
Why Lending Bee Is the Best Choice for VA Loans in San Diego
At Lending Bee, we specialize in VA loans. Our loan officers are experienced, responsive, and committed to helping military borrowers succeed. We offer fast pre-approvals, competitive rates, and personalized support from start to finish.
We understand the challenges of San Diego’s market and know how to position VA buyers for success. Whether you’re buying your first home, upgrading, or relocating due to PCS orders, Lending Bee ensures a seamless experience.