CalVet Home Loans

If you’re buying a home in California as an active-duty service member or honorably discharged veteran, you have access to specialized home loan options designed for military borrowers.

While many veterans choose a federal VA home loan, California also offers its own state-run program called the CalVet Home Loan. Although the two programs share similarities, there are important differences in how they work and what they offer.

What Are CalVet Home Loans?

California offers a state-run home loan program for eligible veterans known as the CalVet Home Loan. The program is designed for veterans and active-duty service members purchasing an owner-occupied home in California.

Most CalVet loan products have no down payment requirement, and CalVet often uses the federal VA guarantee to offer eligible veterans up to 100 percent financing. The program also manually underwrites its loans and does not require a minimum credit score.

CalVet loans can be used for a variety of property types, including single-family homes, VA-approved condominiums, manufactured homes installed on land, mobile homes in parks, and working farms. CalVet also offers construction, rehabilitation purchase, and home improvement loan options.

What is Required for a CalVet Loan?

To qualify for a CalVet Home Loan, you must have served on active duty for at least 90 days during wartime or peacetime, excluding training time. National Guard members and reservists who were ordered to federal active duty, including Active Guard/Reserve (AGR) duty, may also be eligible.

Veterans must have a discharge under honorable conditions. Service is typically verified with a DD-214 form showing the character of discharge.

CalVet does not have a minimum credit score requirement and manually underwrites its home loans to evaluate each applicant’s full financial profile. Borrowers must be purchasing an owner-occupied home in California and cannot currently have an active CalVet Home Loan at the time of application.

Benefits of a CalVet Loan

CalVet Home Loans are designed specifically for eligible veterans and active-duty service members purchasing a home in California. In addition to offering financing backed by a long-standing state program, CalVet provides flexible underwriting and loan options that can accommodate a variety of property types and financial situations.

Because CalVet often uses the federal VA guarantee, many borrowers are able to purchase a home with little to no down payment. The program also manually underwrites loans rather than relying solely on automated approval systems, which can provide additional flexibility for some applicants.

Key benefits of a CalVet Home Loan include:

• Most loan products have no down payment requirement.
• CalVet often uses the federal VA guarantee to offer eligible borrowers up to 100 percent financing with no monthly private mortgage insurance.
• No minimum credit score requirement.
• Manual underwriting designed to evaluate the full financial picture.
• Financing available for multiple property types, including single-family homes, VA-approved condominiums, manufactured homes installed on land, mobile homes in parks, and working farms.
• Certain Revenue Bond-funded loans may offer lower interest rates.
• Loan servicing is retained by CalVet for the life of the loan.

How CalVet Loans Differ from VA Home Loans

CalVet Home Loans and VA home loans are both designed to serve military borrowers, but they are administered at different levels. CalVet is a program run by the state of California, while VA home loans are backed by the federal government through the U.S. Department of Veterans Affairs.

CalVet often uses the federal VA loan guarantee as part of its financing structure, which can allow eligible borrowers to obtain up to 100 percent financing. However, the loan is administered through the state program rather than directly through a private VA-approved lender.

Both loan types are subject to underwriting approval and standard lending requirements, and both can result in foreclosure if a borrower defaults. Veterans purchasing a home in California may consider both options to determine which program best fits their needs.

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