California veterans have access to one of the best mortgage programs in the country — the CalVet Home Loan. Run by the California Department of Veterans Affairs (CalVet), this program offers below-market interest rates, no private mortgage insurance, and built-in property insurance. Here’s everything you need to know for 2026.
What Is the CalVet Home Loan?
The CalVet Home Loan is a state-run mortgage program exclusively for California veterans. Unlike conventional or VA loans funded by private lenders, CalVet uses state bond financing to offer competitive rates — often below what’s available on the open market.
CalVet purchases the home on behalf of the veteran, then sells it to the veteran under a land contract (contract of sale). The veteran makes monthly payments and gains full equity, but CalVet holds legal title until the loan is paid off. This structure allows CalVet to maintain competitive pricing and include insurance at low group rates.
CalVet Home Loan Eligibility Requirements
To qualify for a CalVet Home Loan in 2026, you must meet all of the following:
- California veteran — served on active duty and received an honorable discharge (or currently serving)
- California resident — must be a California resident at the time of application
- Owner-occupancy — the home must be your primary residence
- Property type — single-family homes, condos, and certain manufactured homes qualify; investment properties do not
- Creditworthiness — minimum credit score requirements apply (typically 640+)
Veterans who served during specific wartime periods may receive priority, but the program is open to all California veterans who meet the criteria above.
CalVet Home Loan Rates 2026
CalVet rates are set by the California Department of Veterans Affairs based on bond financing costs. Rates are typically 0.25%–0.50% below market for a comparable conventional loan, making CalVet highly competitive — especially for veterans who may not have the full entitlement available through VA loans.
Rates are fixed for the life of the loan. Current CalVet rates are published at calvet.ca.gov and updated periodically. Contact DiVita Home Finance for a real-time rate comparison between CalVet and VA options.
CalVet vs. VA Home Loan: Key Differences
| Feature | CalVet Home Loan | VA Home Loan |
|---|---|---|
| Who offers it | California Dept. of Veterans Affairs | Private lenders (VA-guaranteed) |
| Available in | California only | Nationwide |
| Down payment | 0% (100% financing) | 0% (100% financing) |
| PMI required | No | No |
| Funding fee | None | 1.25%–3.3% of loan amount |
| Property insurance | Included (farm/fire/flood) | Not included |
| Title ownership | CalVet holds title (land contract) | Borrower holds title immediately |
| Loan limits | Up to $1 million (varies) | No conforming limit with full entitlement |
Key Benefits of the CalVet Home Loan
No Funding Fee
The VA loan charges a funding fee of 1.25%–3.3% of the loan amount (waived for disabled veterans). CalVet charges no funding fee, which can save $3,750–$9,900 on a $300,000 loan.
Built-In Insurance
CalVet includes fire, hazard, and in some cases flood insurance through a group policy at below-market rates. In today’s California insurance crisis, this is a major advantage — many homeowners are struggling to find affordable coverage in fire-prone areas.
Disaster Insurance Advantage
Because CalVet holds legal title and requires insurance protection of its asset, it maintains group insurance policies that remain available even in high-risk wildfire zones where private insurers have pulled out of California.
Below-Market Rates
CalVet’s bond financing often produces rates meaningfully below what private lenders can offer, even on VA-backed loans.
CalVet Loan Limits for 2026
CalVet loan limits vary by county and property type. In most California counties, the standard limit is up to $1 million. Farm loans and manufactured homes have separate limits. Veterans purchasing in high-cost Bay Area counties should confirm the current limit at application time.
How to Apply for a CalVet Home Loan
- Verify eligibility — confirm your discharge type and California residency
- Get your DD-214 — you’ll need your Certificate of Release or Discharge from Active Duty
- Apply through CalVet — applications are submitted directly to the California Department of Veterans Affairs at calvet.ca.gov
- Work with a CalVet-approved broker — a mortgage broker familiar with CalVet can help you compare CalVet rates vs. VA and conventional options and guide you through the land contract structure
- Complete underwriting — CalVet underwrites the loan internally; timelines are typically similar to a standard purchase
Frequently Asked Questions
Can surviving spouses use the CalVet program?
Unmarried surviving spouses of veterans who died in service or from a service-connected disability may be eligible. Contact CalVet directly to confirm.
DiVita Home Finance works with California veterans on CalVet, VA, and conventional loans. We’ll compare all your options side-by-side so you get the best rate and program for your situation. Call (800) 239-1108 or apply online.
