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

If you haven’t refinanced your home you could be missing out on big savings. In fact, more than eight million homeowners are leaving cash on the table by not refinancing. While this number changes every year, what doesn’t change are the benefits of refinancing, especially as a VA Loan borrower.…
Read More of the post VA Refinance: Understanding Your Two Options

In the last post, we discussed several reasons why a VA Loan may be the right choice for you and your family. In this article, you’ll learn if you’re eligible for a VA Loan and what your next steps are. VA Loan Eligibility In order to be eligible for a…
Read More of the post VA Loan Qualifications: Who is Eligible for a VA Loan?

The VA Loan program was established to help our nation’s veterans and their families achieve the goal of homeownership. It has features unlike any other loan product and, if you qualify, is a great way to help you move into your dream home. VA loans have many powerful benefits, including:…
Read More of the post Why Choose a VA Loan?

One of the best parts of homeownership? You are in the driver’s seat when it comes to choosing home financing options. When it’s time to fund a renovation, you can pick from a variety of different home loans to help serve your needs, wants and goals. As the top-rated renovation…
Read More of the post What Renovation Loan Options Are Available to Me?

We recognize this is a difficult time for many people. Click here or call 866-913-2951 for more information and to learn about current options available to our borrowers.