The Borges Real Estate Team
Pasadena - Greater Los AngelesCan You Combine a VA Loan With Down Payment Assistance in California?
Yes, you can combine a VA loan with down payment assistance in California. Since VA loans already offer zero down payment, DPA funds cover your closing costs instead - typically 2-4% of the purchase price. Programs like CalHERO (specifically for military) and GSFA Platinum work with VA financing and can make your home purchase nearly zero out-of-pocket.
Why Combine VA + DPA? You Already Have Zero Down
The VA loan's zero down payment benefit is incredible. But here's what catches most veterans off guard: you still need cash for closing costs.
On a $700,000 home in Greater Los Angeles, closing costs typically run $14,000-$28,000. That includes:
| Closing Cost Item | Typical Amount |
|---|---|
| VA Funding Fee (if not exempt) | $15,050 (2.15% first-time use) |
| Title Insurance | $2,000-$3,500 |
| Escrow Fees | $1,500-$2,500 |
| Lender Fees | $1,000-$2,000 |
| Prepaid Taxes/Insurance | $3,000-$6,000 |
Down payment assistance covers these costs. The result? You can potentially buy a home with almost nothing out of pocket.
If you have a VA disability rating of 10% or higher, you're exempt from the VA funding fee. This alone saves $15,000+ on a typical LA-area purchase. Combined with DPA for remaining closing costs, your out-of-pocket drops dramatically.
Every situation is different. Let's run the numbers for your specific case.
DPA Programs That Work With VA Loans in California
Not all down payment assistance programs work with VA loans. Here are the ones that do:
CalHERO was specifically designed with military members, veterans, and first responders in mind. The program offers either a forgivable grant or a low-interest second loan, depending on your situation. No first-time buyer requirement for veterans.
GSFA Platinum provides up to 5% of the loan amount as a "silent second" - meaning no monthly payments. You only repay the assistance when you sell, refinance, or pay off your first mortgage. Works with VA loans and has no first-time buyer requirement.
Quick Comparison: Which Program Fits You?
| Factor | CalHERO | GSFA Platinum |
|---|---|---|
| Max Assistance | 3.5% | 5% |
| Military Priority | ✓ Yes | General |
| Forgivable Option | ✓ Yes | No |
| Monthly Payment | Depends on option | ✓ None |
| Income Limits (LA County) | ~$180K-$220K | ~$180K-$220K |
| Works with VA | ✓ Yes | ✓ Yes |
Real Numbers: What VA + DPA Looks Like
Let's run the math on an actual scenario in the Greater LA market.
In this scenario, the 5% GSFA assistance ($35,000) more than covers the $21,000 in closing costs. The surplus can go toward prepaid items, rate buy-down, or simply stay in your pocket as reserves.
Here's something most agents don't know: Even if you waive your appraisal contingency to compete with cash offers, the VA Amendatory Clause still protects you. It's federal law and cannot be waived. You can walk away if the appraisal comes in low - no matter what contingencies you waived.
Ready to See What You Qualify For?
VA + DPA stacking is powerful, but the details matter. Let me run your specific numbers.
Free consultation - No pressure
Income Limits: Do You Qualify?
Both CalHERO and GSFA have income limits, but they're higher than you might expect for LA County.
| Household Size | Typical Income Limit (LA County) |
|---|---|
| 1-2 people | Up to ~$180,000 |
| 3+ people | Up to ~$207,000-$220,000 |
These limits are significantly higher than many first-time buyer programs. Many dual-income military families who assumed they "made too much" actually qualify.
These limits are updated periodically and vary by county and program. The numbers above are approximate for LA County in 2025-2026. Always verify current limits with a qualified lender.
How to Stack VA + DPA: The Process
Combining VA financing with down payment assistance adds a layer of complexity, but it's manageable with the right team.
Step 1: Get Pre-Approved with a DPA-Approved Lender
Not all lenders offer DPA programs. You need a lender who is both VA-approved AND approved to offer CalHERO, GSFA, or other DPA programs. We work with lending partners who specialize in this combination and can close in as few as 15 days.
Step 2: Determine Your Best Program
Based on your income, military status, and goals, your lender will recommend whether CalHERO, GSFA, or another program makes the most sense. Sometimes the answer is combining multiple programs.
Step 3: Shop With Confidence
Once you know your total buying power (VA loan + DPA), you can shop with clear numbers. No surprises about "where the closing costs come from."
Step 4: Close and Move In
DPA programs add paperwork but not necessarily time. With our lending partners, VA + DPA purchases close in the same timeframe as standard VA loans.
What If I've Used My VA Loan Before?
Good news: Neither CalHERO nor GSFA require you to be a first-time homebuyer. If you've used your VA entitlement before, you may still qualify for DPA on your next purchase.
However, keep in mind:
- Your VA funding fee may be higher on subsequent use (3.3% vs 2.15%)
- You'll need sufficient remaining entitlement or full entitlement restoration
- Some local DPA programs do have first-time buyer requirements
Stop Draining Savings on Closing Costs
Your VA benefit gets you zero down. DPA covers the rest. With $200M+ in career sales and 81 five-star reviews, I've helped veterans buy homes with almost nothing out of pocket. Let's see what you qualify for.
Call or Text (213) 262-5092Text works too - No obligation, no pressure
