Dan Chapman

Branch Manager, Mortgage Loan Originator

NMLS #1100657
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Jul 20 2017
Dan
49 posts

CalVet vs. VA Home Loans

CalVet Loans are based on CA bond rates

Most active duty and veterans are aware that due to their service they are entitled to one of the best home loans available, the VA loan.  Another option that they may not be aware of is the CalVet Loan.  While this type of loan only applies to active duty and veterans who live in California, both loans are dedicated to helping veterans who are looking to buy a home.  Here are some of the differences between these two home loans.

One big difference is that the CalVet loan purchases the veteran’s property and then sells it back using a contract of sale or a land contract. The legal title to the house is held by the CalVet program while the veteran has the equitable title.  When the veteran utilizes their VA loan they immediately receive the legal title upon ownership of the home.

When using the CalVet loan, the state of California is the lender, while VA loans are guaranteed by the Veterans Administration and the loan is through banks.  The loan limits are also a little different as well. The VA has higher limits for specific counties such as Los Angeles, Orange County and San Diego whereas the CalVet loan limit for California is $521,250, regardless of where the veteran is trying to purchase.

Finally, the interest rates for both the VA and the CalVet loans are very unique. Interest rates fluctuate with the VA and can range anywhere from 3.75% to 5%.  Unfortunately, the CalVet loan has higher interest rates since it is based on bond funding.  This undoubtedly has made the traditional VA home loan program more popular.

While there are some significant differences to either of these loans, it is important to do your research when deciding which option works out the best for you and your current situation.

The Chapman Lending Team at HomeBridge Financial is honored to help many veterans utilize their VA home loan benefit each and every year.  Our goal is to provide the best customer service in the industry along with the most competitive rates and fees.

Semper Fi, Dan Chapman CAPT, USMC (vet)

ChapmanTeam@HomeBridge.com          Call (760) 456-7139

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The Chapman Lending Team

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