va loan after foreclosure california

VA Loan After Foreclosure in California


The good news is it only takes a two year wait after having a foreclosure to get a VA home loan in California.  In this economy many veterans across the state of California have lost their home to foreclosure in the past few years, but many of those veterans are already eligible to use  a VA home loan to buy once again with 100% financing.

It is also one of the better times in history to buy a home in California with VA financing for a number of reasons:

  1. Prices are down by 50% from the peak in many places across the state
  2. VA loan interest rates are close to the  lowest in the y have ever been in the history of the VA home loan program
  3. Combine the above factors #1 and #2 and it creates a rec0rd affordability in the state of California where even with a zero down payment VA loan the house payment is lower than a rent payment

So if it’s been two years since you had a foreclosure, it is really an opportune time to get back on your feet and buy a home with your VA eligibility and be much better off than when you owned the first time with a 30 year fixed VA home loan.  With a sustainable payment long term at prices California hasn’t seen for almost ten years.

If you apply for a VA loan after a foreclosure, you are going to want to make sure that after your foreclosure you have re-established credit and have no derogatory items on your credit.  Your VA loan credit score only has to be 620 to get a VA loan after a foreclosure in California.  But you will want to have some active lines of credit that show you have paid without any late payments after the foreclosure.

A key factor is to check what date the deed of the property on the foreclosure transferred out of your name.  This is the date the two year period starts before you are eligible for a VA home loan again.   Feel free to call me at 858-922-7899 or email me at and I can look up the exact date the deed for the house that went to foreclosure transferred out of your name.

Below are some other great advantages of VA home loans in California:

  • VA loan refinance can be done very easily with a VA streamline to lower your VA loan rate to current record lows
  • VA mortgage loan limits in California go up to a $1 million with zero down in San Francisco, Oakland, and San Jose area. 

    VA loan limits are $700,000 in Los Angeles and Orange County.  San Diego VA loan limits are $546,750.  You can go above these VA loan limits with a small down payment

  • If you receive any disability pay the VA funding fee is waived
  • VA loan credit does not have to be perfect.  Call or email us we are experts in counseling borrowers to raise their VA loan credit score.

Best Regards,

Rob Chomentowski


Sr. Loan Officer (and VA specialist)