About CALVET (California Veterans)
The California Department of Veteran’s Affairs, or CalVet, is a state agency created in 1921 whose function is to provide resources for California Veterans and their families. There are over 1.8 million Veterans in California with an additional 30,000 discharged every year.
Resources provided to California Veterans includes Education, Healthcare, Employment, Housing, and other things, including our focus, Home Loans. The CalVet Home Loan and Farm Loan Programs is funded by the periodic sale of voter-approved bonds, backed by the state of California. These home and farm loan benefits include low-interest rates, low costs and manual underwriting. This means that each application is personally reviewed by an underwriter.
What Are CALVET’s Eligibility Requirements?
Set forth below are the eligibility requirements:
- All veterans who served on active duty a minimum of 90 days (not including active duty for training purposes only), whether during wartime or peacetime, are eligible. If you’re currently on active duty a Statement of Service from your current command is required.
- Eligibility requires an “Honorable” Discharge, or a Discharge “Under Honorable Conditions.” Your DD214 is required.
- There are no prior residency rules. A veteran may have entered service from outside California.
- National Guard or reservists who have been ordered to active duty, including Active Guard/Reserve (AGR) duty are eligible.
Do I Need To Be A California Veteran To Qualify?
No! Any Veteran purchasing an owner occupied home in California is eligible for the benefit. You do not have to enlist or gain your commission in California. Please Note: This is a change from past requirements.
I Have Used My CalVet Benefit Before. Can I Use It Again?
Yes. As long as you do not currently have a CalVet Home loan on the books, you are eligible to receive one. There is no limit on the amount of times you can apply and receive a CalVet home loan.
Where Can I Buy A Property?
Anywhere. As long as it’s California.
Will I Need My Certificate Of Eligibility?
Yes, no worries though. We can typically pull it for you.
Is A CalVet Loan Better Than A VA Loan?
There are PROS and CONS to each. It really depends on your individual circumstances. During the past 27 years we’ve successfully placed clients in both
CalVet Loan Limits For 2021 & 2022
Cal-Vet loan limits vary, depending on the California County where the home is located.
For 2021 CalVet Maximum Loan Limits, depending on county, range from $688,563 to $1,027,968.
For 2022 the CalVet Maximum Loan Limits, depending on county, will range from $809,000 to $1,213,500.
A Few Qualifying Features & Factors
No Minimum Credit Scores Required: In private industry credit underwriting is driven by scores. As many of our Veterans have learned, this can often lead to loan denial, when a more holistic manual review of the Veteran’s financial profile, notwithstanding temporary hardships, would render a different result. CalVet understands that sometimes a little more time, and a little more interest, could get the Veteran in to a home. APPROVED!
Flexible Underwriting: As our website proclaims, “In life Stuff Happens! And In Military Life, Stuff Really Happens!!” CalVet is more flexible than the private sector when it comes to underwriting. Files are manually underwritten (by a person!), not a computerized bundle of algorithms deemed as “artificial intelligence.” A computer has never paid a bill and is incapable of understanding what it’s like to have a 5 year old stick a screwdriver through his foot and get an Urgent Care bill for $2,268. So since CalVet looks at the file personally they are better equipped to work with those who are most “in need”).
High Balance Loans: The maximum loan amount is $1,213,500 (depending on the county where the home is located, CalVet’s 2022 maximum loan limits range from $809,000 to $1,213,500). More purchasing power means more opportunities for qualified buyers.
Ratio Requirement: CalVet’s maximum debt-to-income ratio is 41%. This means that your mortgage payment, including principal, interest, taxes/mello roos, insurance, and HOA dues, PLUS all of your other debt cannot exceed 41% of your income. For example, if you and your spouse have a combined income of $10,000 per month, your maximum debt load, all inclusive, cannot exceed $4,100. Exceptions can be made to the maximum 41% debt-to-income ratio requirement on a case-by-case basis, but more often than not, it’s going to be 41%.
Low Cost Insurance: CalVet offers discounted group insurance benefits for fire, earthquake, and flood, with a replacement cost guarantee at lower costs. And there are no geographical limitations. This is HUGE.
CalVet Will NOT Offset Your Closing Costs: On a VA loan the loan can be structured with premium pricing so that the lender will offset all or part of the buyer’s closing costs. CalVet does not offer this option, so on A CalVet Loan either you and/or the seller will have to pay your closing costs. Remember that closing costs are the responsibility of the buyer, however, when negotiating the purchase of a home you can ask the seller to pay some or all of your closing costs. If the seller agrees, the lender will permit the seller’s concession up to a predetermined percentage. This is solely at the seller’s discretion. In a seller’s market, such as today, the seller may not agree to pay the veteran’s closing costs. If not, the buyer will then be responsible for paying all of their own costs.
Calvet Loan Products: In addition to the CalVet Purchase Loan, CalVet offers rehabilitation loans, and loans for Mobile Homes in a park.