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VA Home LoansThe home loan you earned, with $0 down and no monthly mortgage insurance
VA loans reward your service with some of the strongest terms in lending. North Bay Capital helps veterans, active-duty service members, and eligible spouses across California use that benefit the right way, from your first purchase to a streamline refinance years later.
A VA home loan is a mortgage backed by the Department of Veterans Affairs that lets qualified veterans, service members, and surviving spouses buy with $0 down and no monthly mortgage insurance. This page covers VA purchase loans, the IRRRL streamline refinance, and cash-out refinancing, plus how entitlement, the funding fee, and your Certificate of Eligibility actually work.
Programs we broker
The options under va loans — and the right fit for each.
VA Purchase Loan
Zero down, no monthly mortgage insurance, for those who served.
The VA Purchase Loan is the cornerstone benefit earned through military service. With full entitlement, eligible veterans, active-duty service members, National Guard, Reservists, and qualifying surviving spouses can buy a primary residence with 0% down and no monthly PMI — a combination no conventional or FHA loan can match.
I run the COE (Certificate of Eligibility) and underwrite the file against VA's residual-income and debt-ratio guidelines, which are often more forgiving than conventional. Sellers can pay up to 4% in concessions toward your closing costs, and the VA funding fee can be rolled into the loan so you really can close with very little out-of-pocket.
- First-time buyer with no down payment saved
- PCS move into Sonoma, Napa, or Marin County
- Repeat VA buyer restoring entitlement on a new home
- Surviving spouse using a transferred entitlement
VA IRRRL (Interest Rate Reduction Refinance Loan)
The VA streamline — lower rate, less paperwork, no new appraisal in most cases.
The IRRRL — pronounced "earl" — is the VA's streamline refinance, designed for one job: drop the rate or move you out of an ARM into a fixed loan on an existing VA mortgage. Because you're already in a VA loan, the program waives a lot of the usual friction. In most cases there's no new appraisal, no income re-verification, and no termite inspection requirement.
The deal has to make sense for you, not just close — VA requires a tangible net benefit, typically a meaningful rate drop or a switch from adjustable to fixed. Closing costs and the reduced 0.5% funding fee can be rolled in, so an IRRRL can often be done with nothing out of pocket.
- Dropping rate when the market moves down
- Getting out of a VA ARM into a 30-year fixed
- Lowering payment without a full underwrite
- Refinancing without a new appraisal headache
VA Cash-Out Refinance
Tap equity up to 100% of value — a tool only the VA program offers.
The VA Cash-Out Refinance lets eligible borrowers pull equity from a primary residence, and it's one of the few programs that can lend up to 100% of the home's appraised value (most lenders cap closer to 90% in practice — verify for your scenario). You can also use this loan to refinance a non-VA mortgage (conventional, FHA, USDA) into a VA loan, which is how a lot of veterans first put their benefit to work after years in another product.
Unlike the IRRRL, this is a full underwrite — appraisal, income, credit, the works. The trade-off is flexibility: consolidate debt, fund a remodel, cover tuition, or just move from a higher-rate FHA loan with PMI into a no-PMI VA loan and pull a little cash at the same time.
- Refinancing an FHA loan to eliminate MIP
- Consolidating high-interest debt into one payment
- Pulling equity for a remodel or ADU
- Switching a conventional loan into a VA loan to drop PMI
VA One-Time Close Construction-to-Permanent Loan
Build the home, then roll into your permanent VA mortgage — one closing.
VA construction loans are rare in the market because most lenders don't offer them, but they exist and they work the same way as the FHA one-time close: a single loan, a single closing, that funds the build and then converts to your permanent VA mortgage when the home is finished. No second appraisal, no second set of closing costs, no requalifying at the end.
You'll need a VA-approved builder, a buildable lot (which can be purchased as part of the loan), and plans that meet VA's minimum property requirements. During construction the lender draws funds in stages; when the certificate of occupancy is issued, the loan modifies into a 15- or 30-year fixed VA loan at the rate you locked up front.
- Veteran building a custom home on a Sonoma County lot
- Active-duty family planning a PCS move with build timing
- Avoiding a separate construction loan and a second refi
- Locking the permanent rate before construction starts
VA Jumbo Loan
Above conforming, still zero down with full entitlement.
Since the Blue Water Navy Act, full-entitlement veterans can borrow above the county conforming limit with zero down — there is no statutory VA loan cap anymore. In Sonoma, Marin, Napa, and across the Bay Area where prices push past conforming limits routinely, this is the program that lets a veteran buy a real Bay Area home without a jumbo down payment.
Underwriting on a VA Jumbo is a bit tighter than a standard VA loan — lenders generally want stronger credit (often 680+), better reserves, and a clean residual-income picture — but the core benefits stay intact: no PMI, competitive fixed rates, and the funding fee can still be financed. If entitlement has been partially used, a small down payment may be required on the portion above the conforming limit.
- Buying in Sonoma, Marin, or San Francisco above conforming
- Officer relocating into the Bay Area on PCS orders
- Move-up purchase where the new home exceeds prior limits
- Avoiding a jumbo down payment by using VA entitlement
VA Native American Direct Loan (NADL)
VA lends directly — for eligible Native American veterans buying on federal trust land.
The NADL is unusual: it's a direct loan from the VA itself, not a loan made by a private lender and guaranteed by the VA. It's available to eligible Native American veterans (or non-Native veterans married to a Native American) who want to buy, build, or improve a home on federal trust land, and it requires a Memorandum of Understanding between the VA and the tribal government.
Because the VA is the direct lender, the program offers a low fixed rate set by VA, no down payment, no PMI, and limited closing costs. NADL is a narrow program — it doesn't fit most California scenarios — but for veterans it does fit, nothing else in the market is comparable. I'll help you confirm tribal MOU status and walk the application through with the regional VA loan center.
- Native American veteran buying on tribal trust land
- Veteran spouse of a Native American tribal member building on allotted land
- Refinancing an existing NADL to a lower rate
- Home improvements on a qualifying trust-land residence
Calculators for this loan
VA Loan
VA entitlement, funding fee, and zero-down qualification.
VA Funding Fee Lookup
Funding fee percent and dollar amount by loan type, LTV bracket, and prior-use status.
VA Second-Tier Entitlement
Multi-home VA — partial entitlement, county limit math, second-tier purchase + refi.
Mortgage Payment & Amortization
Monthly payment, full amortization schedule, and interest totals.
What people ask before they apply
Who qualifies for a VA home loan?
Eligibility generally extends to veterans, active-duty service members, certain members of the National Guard and Reserves, and some surviving spouses. It comes down to your length and character of service, which the VA confirms through your Certificate of Eligibility. The specific service requirements vary by era and duty type, so the cleanest first step is to pull your COE or let us help you request it.
How do I get my Certificate of Eligibility (COE)?
The Certificate of Eligibility is the document that proves to a lender you have VA loan benefits and how much entitlement you have. You can request it through the VA's eBenefits portal, by mail, or, in most cases, your lender can pull it electronically in minutes. As a broker, North Bay Capital can request your COE for you as part of getting you pre-approved, so you do not have to chase paperwork.
Is there really no down payment on a VA loan?
Yes. With full entitlement, you can finance 100% of a primary home's purchase price, so the required down payment is $0. There is no VA cap on the loan amount in that case; what you can borrow is limited by the appraised value and what your income can support. You can still choose to put money down, and on some loans a down payment lowers your funding fee.
What is the VA funding fee, and can it be avoided?
The funding fee is a one-time charge that helps keep the VA loan program running, and it can be paid at closing or rolled into the loan. For a first-use purchase with $0 down it is currently about 2.15% of the loan amount, lower with a down payment, and just 0.5% on an IRRRL streamline refinance. Importantly, many veterans who receive VA compensation for a service-connected disability are exempt from the funding fee entirely. Confirm your exemption status and current figures for your scenario.
Why is there no monthly mortgage insurance on a VA loan?
Because the VA guarantees part of the loan, lenders do not require the private mortgage insurance that conventional loans charge when you put down less than 20%, and there is no FHA-style monthly mortgage insurance either. That guarantee is built into the one-time funding fee instead of an ongoing monthly cost, which is one of the biggest payment advantages of a VA loan.
What is the VA IRRRL and how is it different from a cash-out refinance?
The IRRRL, or Interest Rate Reduction Refinance Loan, is the VA's streamline refinance for borrowers who already have a VA loan and want a lower rate or to move to a fixed rate. It usually skips the appraisal and income re-verification and carries only a 0.5% funding fee, so it is fast and inexpensive. A cash-out refinance is different: it requires a full underwrite and appraisal, lets you take equity out as cash, and can also refinance a non-VA loan into a VA loan.
Can I use a VA loan more than once, and how does entitlement work?
Yes. Your VA entitlement is reusable. Once you sell a home and pay off the VA loan, your full entitlement is typically restored for the next purchase. You can sometimes even have more than one VA loan at a time using remaining entitlement, where county loan limits come into play for the bonus-entitlement calculation. We will review your COE and walk through exactly how much entitlement you have available.
Can a VA loan be used to build a home?
VA construction financing exists, but it works differently from a standard purchase loan and not every lender offers it. We handle construction scenarios separately so we can match you with a lender that specializes in them. If building is your goal, call us at 707-595-5393 and we will point you to the right program rather than forcing a purchase loan to do a job it was not designed for.
Jesse Gonzalez, President & Founder
NMLS #278103 · CA DRE #01855372 · Last reviewed June 24, 2026
Let's put your VA benefit to work
Whether you are buying your first home with $0 down, refinancing into a lower rate with an IRRRL, or just trying to understand your entitlement, you can talk it through with a real person. Call Jesse Gonzalez at North Bay Capital at 707-595-5393 or email jesse@northbaycap.com, and we will pull your Certificate of Eligibility and shop several lenders to find the VA loan that fits.