Can You Combine a VA Loan With Down Payment Assistance in California? | The Borges Real Estate Team

The Borges Real Estate Team

Pasadena - Greater Los Angeles
Veterans United Partner

Can 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.

💡 Disabled Veterans

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.

💰
Want to know exactly what programs you qualify for?

Every situation is different. Let's run the numbers for your specific case.

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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
California Homebuyer Emergency Relief Operation
Military Priority
Assistance Amount
Up to 3.5%
Structure
Forgivable or Low-Interest
First-Time Buyer Required
No (for military)
VA Compatible
Yes

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
Golden State Finance Authority
VA Compatible
Assistance Amount
Up to 5%
Structure
Silent Second (No Payments)
First-Time Buyer Required
No
Repayment
At Sale/Refi Only

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.

Example: $700,000 Home in Pasadena
Purchase Price $700,000
Down Payment (VA = 0%) $0
Estimated Closing Costs $21,000
GSFA Platinum (5% of $700K) -$35,000
Your Out-of-Pocket $0 (with surplus for reserves)

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.

🔒 Important: VA Amendatory Clause Protection

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.

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5-Star Reviews
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VA Close Time
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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.

⚠️ Income Limits Change

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) 262-5092

Text works too - No obligation, no pressure

Frequently Asked Questions

Can you combine a VA loan with down payment assistance?
Yes. In California, several down payment assistance programs work with VA loans. Since VA loans already offer zero down payment, DPA funds cover closing costs instead - typically 2-3% of the purchase price. Programs like CalHERO (specifically for military) and GSFA Platinum are popular options that stack with VA financing.
What is CalHERO and how does it work with VA loans?
CalHERO (California Homebuyer Emergency Relief Operation) is a DPA program specifically designed for military members, veterans, and first responders. It provides up to 3.5% of the purchase price as a forgivable grant or low-interest second loan. When combined with a VA loan, CalHERO funds cover closing costs, potentially making your purchase completely out-of-pocket free.
Does GSFA Platinum work with VA loans?
Yes. GSFA (Golden State Finance Authority) Platinum program offers up to 5% of the loan amount as down payment or closing cost assistance. It works with VA loans and is structured as a silent second loan with no monthly payments. The assistance is repaid only when you sell, refinance, or pay off the first mortgage.
What closing costs does DPA cover on a VA loan?
DPA funds on a VA loan typically cover: VA funding fee (if not exempt), title insurance, escrow fees, lender origination fees, appraisal costs, and prepaid items like property taxes and homeowners insurance. This can total 2-4% of the purchase price depending on your situation.
Can I use VA loan and DPA if I'm not a first-time buyer?
It depends on the program. CalHERO does not require first-time buyer status for military and veterans. GSFA Platinum also does not have a first-time buyer requirement. However, some local DPA programs may require you to be a first-time buyer or not have owned a home in the past three years. Always verify program requirements.
What are the income limits for VA loan DPA programs?
Income limits vary by program and county. In Los Angeles County, CalHERO typically allows household incomes up to $180,000-$220,000 depending on household size. GSFA Platinum has similar limits. These limits are significantly higher than many first-time buyer programs, making more veterans eligible.
JB

Justin Borges

Realtor | Veterans United Preferred Partner | DRE# 01940318

Justin Borges leads The Borges Real Estate Team in Pasadena with $200M+ in career sales, 81 five-star Google reviews, and a 106% average list-to-sale ratio. As a Veterans United Preferred Partner with 13+ years of experience, he specializes in helping military families navigate VA financing and down payment assistance programs to minimize out-of-pocket costs.

Disclaimer: This article provides general information about VA loans and down payment assistance programs and is not intended as financial advice. Program availability, income limits, and terms change frequently. Consult with a DPA-approved lender to verify current program details and your eligibility. The Borges Real Estate Team is not a lender and cannot guarantee program availability or approval. Individual results vary based on credit, income, and program requirements.