If you are a military veteran, you have earned a wide range of benefits, including education assistance and healthcare coverage. Another benefit is access to affordable, convenient home loans through the Department of Veterans Affairs, commonly known as the “VA.”
While this nation-wide organization provides benefits in every state, veterans in California have access to a specific organization called the California Department of Veterans Affairs, or “CalVet.”
If you live in California and are an eligible veteran, a CalVet home loan could be a useful option for your home financing. They offer affordable loans and simplified access, and these mortgages come with low downpayment requirements, which is one of the main benefits for using a VA loan.
CalVet Home Loans: An Affordable, Convenient Financing Option
What are CalVet Home Loans?
The California Department of Veterans Affairs offers a wide variety of services, much like the nationwide VA. The difference, of course, is that this organization only serves veterans in the state of California. It might seem like serving Armed Forces veterans in a single state would be a small task, but according to CalVet’s website, there are 1.8 million veteran living in the Golden State.
CalVet home loans are benefits provided through this organization, helping veterans save money while simplifying the mortgage process. They also help veterans protect their home investment, making this an all-encompassing option.
Generally, CalVet home loans have interest rates that are below the market average. However, rates can fluctuate depending on the loan, the specific lender, and the borrower. One of the main advantages of a CalVet mortgage is the downpayment. In many cases, eligible veterans can secure a loan with little or no downpayment; an option that is rarely available with other lending programs.
Who is Eligible for a CalVet Mortgage?
To be eligible for a CalVet mortgage, you don’t necessarily have to be a California resident. According to an information sheet provided by the organization, “all veterans purchasing homes in California are eligible for a CalVet Home Loan, including Veterans who served during peacetime.” So as long as you are a veteran and the home you are buying is in California, you will be eligible for this program. This means that if you are moving to the state, but are still a resident in another, you are eligible for a CalVet home loan.
For eligibility, only 90 days of service and a discharge qualified as “honorable” or “under honorable conditions” will be required. If you are still serving, certain paperwork may be required, such as a Statement of Service from your current command. There are various requirements for different levels and stages of service, so talk with an eligible lending agent for information on required documents.
Features of a CalVet Home Loan
These loans come with a variety of different features, including insurance at low group rates. They also have built-in disaster protection. They have coverage for earthquake and flood damage, including excellent coverage with low deductibles and premiums. CalVet home loans even have low cost group life insurance coverage, making this a well-rounded and reliable loan option.
What Types of Properties Can I Finance with a CalVet Home Loan?
With this program, a wide variety of properties are available. You can use this program to purchase a single-family home, which is the option used by most buyers. But it’s not the only option, as planned-unit developments and condominiums are also eligible. You can use a CalVet mortgage to purchase a manufactured home, as long as it has been installed on a permanent foundation. Mobile homes in parks are also eligible, and you can even use this financing option to purchase farms and other forms of financing.
How Much Financing is Available Through CalVet?
While many loans have specific limits, with CalVet you have more available options. CalVet’s maximum loan amount depends on various factors, including the loan features and the type of property being purchased. For example, there are generally more limits if you are buying a mobile home, but the limits will likely be higher if you are buying a single-family property.
CalVet tends to offer loans that exceed conventional conforming loan limits, so you can likely purchase a home above the limits set by other loan programs. The totals vary and depend on many different factors, so if you want specific information on loan limits, contact our staff for more information.
Fees for a CalVet Home Loan
One of the goals for CalVet home loans is to make mortgage financing more affordable up front. With this in mind, they tend to offer loans with lower fees compared to other lending options.
For example, CalVet only collects an up-front funding fee and does not charge a fee for monthly mortgage insurance, which, over the life of a loan, can cost thousands of dollars even through it is a relatively small monthly fee.
Home Improvement, Rehab, and Construction Loans Also Available
Using the CalVet program, you can not only purchase a wide variety of properties, you can actually use the loan for a variety of different uses, not just the purchase of a read-to-move-in house.
Rehabilitation loans, for example, are an option through CalVet. You can literally purchase a home that needs significant renovations and get the financing you need to make these improvements. So if you find a home that is in the right neighborhood and has the right floor plan, but needs a new roof and new windows, you can get a loan that covers the purchase and the repairs.
The loan even allows for construction loans. You can purchase an undeveloped lot and build the home that fits your needs, giving you more options for housing.
Reliable Support for CalVet Home Loans
If you want to learn more about CalVet home loans, contact our team today. We’ll show you all the various options so you can make the right choice for your home loan needs. Whether you are a qualifying veteran or need a loan for an investment property, we are here to support for property goals!
