What is a Cal-Vet Loan?
According to the US Department of Affairs, veterans and military personnel qualify for VA home loans affording the opportunity to invest in their own property and future residential interests. A Cal-Vet Loan and a VA home loan share many similarities including its powerful perks and assistance to veterans, but the differences should also be considered. We take a look at the features of the Cal-Vet loan and how it differs from the conventional VA home loan.
A Closer Look at the Cal-Vet Loan
The Cal Vet mortgage loan is only made available to qualifying veterans and military staff in California. The VA mortgage is accessible by all military making this type of home loan a more versatile option. Although both loans serve to assist our veterans, the Cal-Vet loan is restricted by the military law as initiated in California. All California veterans must adhere to these requirements to qualify for a Cal-Vet loan.
The Advantages of Cal-Vet Loans
The Cal-Vet loan offers a multitude of advantages including the availability of finances for veterans needing a mortgage, reductions in property and loan fees, improved interest rates and property tax. It includes affordable homeowners insurance and a zero percent deposit to be placed on the purchase of the property. Although Cal-vet offers a variety of financial options for veterans and military personnel, the overall home loan sum is less than a VA home loan.
The Impact of Cal-Vet on VA Loans
Although Cal-vet is a specialized mortgage available for military persons, if you take out a Cal-Vet mortgage it will have an influence on your ability to obtain a VA home loan. When purchasing a home using the Cal-Vet loan, Cal-Vet loans are managed and overseen by the VA. In such instances your overall loan entitlement obtained from the VA it would be much less.
Cal-Vet loans are designed to assist the military men and women including veterans who wish to own their own home and originate in California. It is important to consider the features of each type of loan and how it can address your needs. With the proper strategies, call on your trusted VA real estate Team. The Hitchens Team can assist in making the best decisions for your future property requirements. It is important to consult with your lender if you are unsure of the options available and become well informed for investing in your next home.