VA Jumbo Loans: Do I Need One For San Diego?

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San Diego VA Jumbo Loans

San Diego has one of the most appealing and varied climates in the world. Within an hour’s drive of almost anywhere in the county, you can snow ski, water ski, four-wheel, spelunk, deep sea fish or dive, visit the zoo, museums including the aerospace museum, shop or visit street fairs, visit Mexico, or almost anything else your imagination can conceive.

The combination of climate and activity level make San Diego one of the most popular places to live in the world. For those who have retired, who are just starting out, or who are tired of the cold and snow in other areas, San Diego is the destination of choice for many.

The abundance of activities and the mild climate, as well as its proximity to Mexico, also make it an ideal tourist mecca requiring an abundance of temporary housing. Add an assortment of military bases located in the county and it’s easy to see why housing is at a premium in San Diego. Many military personnel and veterans opt to remain in the area for all the above reasons and more.

Home prices in San Diego are higher than they have been in almost a decade, with the median home price reaching $489,000 at the start of the second quarter of this year. Prices have risen more than 6 percent in the past year and show no sign of stabilization or decline.


Although there are home bargains available, they are scarce and therefore snapped up quickly. Particularly in the urban areas, housing costs tend to be higher than in the outlying areas. The somewhat lower price of the outlying areas can be appealing, but the rush hour commute can take hours to complete, which should be thoroughly considered before purchasing a home in a suburban or outlying area.

The VA considers San Diego to be a high cost-of-living area so the maximum guaranteed amount of a regular VA loan is higher than in most other areas, but a veteran may still want to take advantage of the VA jumbo loan if he or she has the working capital available. A jumbo VA loan can enable a veteran to purchase a higher-end home with less money down than a conventional loan would require and at a much better rate.

Jumbo VA loans are not available in all areas. And, while the interest rate for a jumbo may be somewhat higher than for a regular VA loan, it should still be lower than a conventional loan. To calculate the down payment necessary for a jumbo VA loan, first determine the guarantee cap for the area. Next, subtract the difference between the home desired and the amount the VA will guarantee. Twenty-five percent of that difference is the amount that will be needed for a down payment.

For those veterans who can afford a down payment, a VA jumbo loan can enable them to purchase a better home in San Diego than they might otherwise be able to afford. Either way, purchasing a home in San Diego, although expensive, should be a sound investment that will retain its value over time and/or appreciate substantially.

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