Many California vets, and active duty persons serving in california are not aware of the benefits of the Cal Vet program. Many listing agents also miss an opportunity when not counseling sellers about this program when the subject property needs work. Here are a few differences between Cal Vet and VA loans.
1) Current Cal Vet loan limit with 0 down is $521,250
2) Cal Vet provides financing for rehabilitation purchase money loans, which will fund the purchase at C.O.E
3) Cal Vet will provide financing for mobil homes in parks. Home must be no more than 20 years old at time of purchase.
4) Cal Vet interest rates are 30 year fixed. They are currently 3.75%
5) Cal Vet offers low cost insurance for flood and earth quake coverage.
6) Low closing costs due to no lender garbage fee's
7) Low cost title insurance because Cal Vet is a land contract offering the buyer equitable title. The state of CA. owns the property until loan is paid off. Buyer owns the difference between the loan balance and sale price if they sell the home before the loan is paid off.
There are currently benefits to the VA program that are not possible with the Cal Vet program, such as tweaking the interest rate so that lender can pay buyers closing costs. California vets and active duty persons are fortunate to have 2 great homeloan products.
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