Who Offers the Loan? VA Loan: Federally backed by the U.S. Department of Veterans Affairs. Offered through banks, credit unions, mortgage lenders, and brokers. CalVet Loan: State-backed through the California Department of Veterans Affairs. Only available for properties within California.

Ownership Difference With a VA Loan, you own the property outright from day one - once escrow closes, the home is legally yours. With a CalVet Loan, the State of California holds legal title while you have beneficial ownership. You occupy the home, make payments, and can gain full ownership once the loan is paid off or refinanced.

Down Payment & Eligibility Both programs offer 0% down options. VA Loan Requirements: Must meet military service eligibility and have a valid Certificate of Eligibility (COE). CalVet Loan Requirements: Must be a California resident (or plan to become one) and meet military service requirements.

Credit Score & Flexibility VA Loan: No official minimum credit score requirement, though most lenders require 580 - 620+. Competitive interest rates. CalVet Loan: More lenient with credit history, may approve borrowers with past credit issues that traditional lenders might decline, and is a great option if you've been denied a VA loan before.

Interest Rates & Fees VA Loan: Usually offers lower interest rates and includes a VA Funding Fee (waived for veterans with 10%+ service-connected disability). CalVet Loan: No VA funding fee, often includes a 1 - 2% origination fee, may have slightly higher rates in some cases, and closing cost assistance may be available. Example: On a $300,000 loan, a 1% origination fee = $3,000.

Insurance Requirements VA Loan: You can choose your own homeowners insurance provider. CalVet Loan: You must use CalVet's group insurance plan, which is comprehensive but can sometimes be more expensive than private coverage.

Property Location & Usage VA Loan: Can be used in any U.S. state or territory and must be used for a primary residence, not an investment property. CalVet Loan: Only available in California and must be owner-occupied - no second homes or investments.

Loan Servicing & Support VA Loan: Usually serviced by a third-party lender. CalVet Loan: Serviced directly by the State of California, offering more personalized attention and flexibility during hardships.

Approval Timeline VA Loan: Pre-approval in 1 - 2 days. CalVet Loan: Takes longer - typically 5 - 7 business days for approval.

Which One Should You Choose? Choose a VA Loan if you want more flexibility on lenders, rates, and insurance, if you may buy a home outside California, or if you want a faster process and easier refinancing options. Choose a CalVet Loan if you're buying within California, you have credit challenges or need more leniency, or you want direct state servicing and potential closing cost help.

Recap VA Loan: Federally backed, you own the home outright, 0% down payment, no PMI, often lower interest rates, requires a funding fee (unless exempt), and slightly stricter credit standards. CalVet Loan: State-backed (California only), state holds legal title until payoff, 0% down, no VA funding fee, more flexible on credit, slightly higher interest rates, and must use CalVet insurance.

Final Thoughts If you're still unsure which program works best for your situation, I can assist with both VA and CalVet loans. You can book a call via Calendly, email me directly, or message me on Instagram @LexLender805. Remember - you've earned these benefits. Use them strategically to build long-term wealth through real estate.