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

Get a Free Rate Quote  –  Start an Online Application

The Chapman Lending Team

Related Articles

Renovation loans: what can they be used for? A renovation loan is an excellent option for homeowners who want to change up their living space with a few improvements, whether big or small. It provides low-interest funding compared to credit cards, which carry an average 15.91% interest rate. When compared…
Read More of the post RENOVATION LOANS: WHAT CAN THEY BE USED FOR?

USING GIFT FUNDS TO BUY A HOME For many homebuyers, gift funds are a needed boost to help them cover the necessary down payment on their dream home. Although it’s common practice to receive these financial gifts from friends and family, there are still many guidelines you should consider before…
Read More of the post USING GIFT FUNDS TO BUY A HOME

  2022 VA Loan Limits have increased The Department of Veterans Affairs (VA) increased 2022 loan limits for potential VA homebuyers across the country! This means that active and retired military service members and their families now have even more purchasing power when shopping for their dream home. In some…
Read More of the post 2022 VA LOAN LIMITS HAVE INCREASED

Chapman Lending Team at HomeBridge Financial I'm inviting you to join me in "PROUD to Walk," the inaugural charity event hosted by The Navy Marine Corps P.R.O.U.D. Foundation from May 15 to May 23, 2021. Every year I've been a proud sponsor of "PROUD to Walk," and I'm happy to…
Read More of the post JOIN ME AS I SUPPORT “PROUD TO WALK” FOR THOSE WHO SERVE