California & VA Loans for Veterans
Homebuyers who are veterans, whether they are active or not, can receive assistance in buying a new home through several mortgage programs created solely for U.S. military veteran borrowers. Both the U.S. Department of Veteran Affairs (VA*) and the California Department of Veterans Affairs (CalVet) offer veteran loan programs to eligible military veterans.
Homebuyers who are U.S. military veterans should speak to a home loan specialist to find out whether they are eligible for either a VA loan* or a CalVet loan.
CalVet Loan vs VA Loan* – What is the Difference?
The CalVet loan is offered by the California Department of Veteran Affairs, while the VA loan* is provided by the U.S. Department of Veteran Affairs. The main difference between the two programs lies in how the properties are held.
Differences in how the titles of the properties are held
Under the CalVet loan program, CalVet purchases the property the homebuyer desires. They then sell that property to the homebuyer using a contract of sale, which is also referred to as a land contract. This means that CalVet holds the legal title to the house that was bought using the CalVet mortgage and the homebuyer holds the equitable title, which is the right to obtain full ownership of the property.
Under the VA loan program, the homebuyer receives the property’s full legal title and complete ownership right away.
CalVet Home Loans
CalVet loans are given out to eligible veterans through approved lenders by the state of California. The following is a breakdown of all the particulars of a typical CalVet home loan: