Before You Apply: Important Facts About the CalVet Program in California

If you are a veteran or active duty service member thinking about buying a home in California, the CalVet Program is one of the state’s most valuable financing options. Unlike conventional loans, this program offers unique benefits tailored specifically to veterans — but it also has rules and conditions you should understand before you apply.

This guide walks through the key features of the CalVet Program in California, what makes it different, eligibility requirements, how to apply, and why it matters for veteran homebuyers.

What Is the CalVet Program?

The CalVet Home Loan Program is a housing assistance loan offered by the California Department of Veterans Affairs. It helps eligible veterans and active duty service members purchase, build, or improve a home in California.

CalVet is different from regular VA loans because CalVet actually holds the loan and services it directly — it is not sold on the secondary market like most mortgages. This means CalVet can sometimes offer more flexible underwriting and focused service for California veterans.

CalVet loans can be used to:

• Purchase a primary residence
• Build a new home
• Refinance an existing CalVet loan
• Buy a property and complete renovations (in some cases)

Key Benefits of the CalVet Program

Here are some of the top reasons California veterans consider CalVet:

1. Competitive Interest Rates

CalVet typically offers interest rates that are competitive with or better than many conventional and government loan products.

2. No Down Payment Option

If you qualify, CalVet may allow you to purchase a home with no down payment, similar to a VA loan, which can be a significant help in California’s expensive housing market.

3. Flexible Credit Evaluation

CalVet often considers a broader range of credit factors than some traditional mortgage programs, which can benefit veterans with less than perfect credit histories.

4. In-House Servicing

Because CalVet holds and services the loan, you work directly with a state agency throughout the life of the loan. Some borrowers find this consistency and focus on veteran needs reassuring.

Eligibility Requirements for CalVet

Before you apply for the CalVet Program, it is important to understand the eligibility criteria. These include:

• You must be a veteran, active duty service member, or eligible surviving spouse
• You must intend to occupy the home as your primary residence
• You must meet CalVet’s income, credit, and residency requirements
• You must meet minimum military service requirements

CalVet may require documentation such as:

• Certificate of Eligibility (COE)
• DD-214 or Statement of Service
• Proof of income and assets
• Credit history reports

Meeting eligibility does not guarantee approval, but it is a necessary first step before applying.

How the CalVet Loan Process Works

The CalVet home loan process follows several important stages:

Pre-Qualification

You provide basic income, asset, and credit information to determine initial eligibility.

Loan Application

CalVet reviews detailed documentation, including military service records and financial history.

Property Evaluation

CalVet will evaluate the property you are purchasing to ensure it meets basic safety and habitability standards.

Underwriting and Approval

CalVet underwriters review the full file and determine whether to approve the loan.

Closing and Funding

If approved, CalVet handles closing and services the loan directly, not through another lender.

CalVet vs Other Loan Programs

Understanding how CalVet compares to other options helps you decide what fits best for your situation.

Property Requirements

The property you purchase using CalVet must:

• Be a single family home, condo, or eligible multi-unit property
• Be located in California
• Meet CalVet safety and habitability standards

Unlike some conventional loans, properties that need certain repairs may still qualify if CalVet determines they are safe or if planned improvements meet requirements.

Costs and Fees

CalVet loans may include:

• Interest
• Closing costs
• Fees specific to CalVet underwriting

Because the loan is serviced directly, you should get transparent estimates of all costs before closing.

CalVet does not charge private mortgage insurance, but some fees may be different than what veterans see with VA, FHA, or conventional lending.

How to Prepare Before You Apply

Before applying for the CalVet Program:

1. Check Your Eligibility
   Review service records and ensure you meet minimum military service requirements.
2. Gather Documentation
   Prepare DD-214, COE, pay stubs, tax returns, and financial statements.
3. Understand Property Costs
   Research typical closing costs, property taxes, and insurance in your target California area.
4. Compare Options
   Review CalVet side by side with other financing options such as a traditional VA loan or conventional mortgage.
5. Plan Your Budget
   Use mortgage calculators to model monthly payments, including taxes and insurance.

Common Misconceptions About CalVet

CalVet Is Only for First Time Buyers

Not true — both first time buyers and repeat buyers can use the program.

CalVet Loans Are Hard to Qualify For

While underwriting is thorough, CalVet’s veteran-focused structure can make it more flexible for those with strong service records.

CalVet Is Only for Rural Properties

CalVet loans work statewide, including within major metropolitan areas.

Frequently Asked Questions

Can I Use CalVet With a VA Loan?

You can choose between them, but you cannot finance the same property with both simultaneously.

Does CalVet Have Income Limits?

Yes, there are income considerations based on household size and location.

Can I Build a Home With CalVet?

Yes, CalVet supports construction financing under specific conditions.

Is CalVet Only for Active Duty?

No — veterans, active duty service members, and some surviving spouses may qualify.

Final Thoughts

The CalVet Program in California offers a veteran-focused home loan option with competitive features and flexible underwriting. Whether you are buying your first home, building new, or improving a property, knowing the program basics before you apply helps you make informed decisions.

Before you start the application process, take time to review eligibility, gather documentation, model costs with a mortgage calculator, and compare alternatives such as VA loans or conventional financing. Being prepared puts you in a stronger position to secure the home you want with confidence.