I have funded a lot of VA loans in Redding California.  I get asked a lot about the differences between the VA loan and the Cal Vet Loan.  It all depends on when & where in California the Veteran is purchasing. Each county has a different VA maximum loan limit.  For example in Redding California the max VA loan limit is $417,000.  The max Cal Vet loan is $521,250.  In this example if the home is more than $417,000 the borrower could purchase the home using the Cal Vet Loan instead of the VA loan.  This would allow the borrower to finance more and put let money down.

Currently (October of 2011) interest rates favor the VA loan over the Cal Vet loan by close to 1.75%. 

Calvet vs VA Loan | Home Owners Insurance

Cal vet has a Comprehensive Homeowners Insurance Polocy that included a Guaranteed replacement for your home, even in natural disaster situations like a earthquake of major flood.  Private Homeowners Insurance Companies will charge extra for this kind of coverage and Guaranteed relplacement in parts of california are very hard to come by.   

Calvet does not offer a Refinance

The Calvet Loan does not offer a Refinance.  If you are currently in a CAL Vet loan and are looking to lower your interest rate you might be able to refinance into a VA loan.  Unfortunatly a Cal Vet borrower would not be able to take advanage of the Interest Rate Reduction Refinance Loan or IRRRL.  The IRRRL is a loan designed for VA loans refinanced to VA loans.  If a borrower wants to refinance into the VA loan and does not currrently have a VA loan the borrower will not be able to borrower more than 90% of his homes Value.  Check my Refinance Page to find out more on Refinancing. 

More Advantages of the VA Loan over the Cal Vet Loan

• The VA Loan Currently has lower interest rates than the Cal Vet Loan
  • Currently the VA Loan is more than 1% lower in Interest Rate
• The VA Loan does not have any lender fees or Origination Fees.
• The Cal Vet Loan charges a 1% Loan Origination Fee
  
  • Click here for my VA Loan Fees
  • Click here for the Cal Vet Loan Fees
• The VA loan is assumable.
• The VA loan does not require the home owner to purchase life insurance.
• The VA loanhas 15 year payment options with lower interest rates abailable
  • Cal Vet only has 30 year options with the ability to pay the loan down faster.

So... VA or Cal Vet?

It depends. For Redding Ca Veterans, the standard VA loan program is what I would recommend.   Lower interest rates and higher loan amounts are two benefits that are hard to ignore. But this could change tomorrow with VA interest rate changing daily.   Also VA could lower the 100% financing limit in 2012. It is important to consult with an Redding California VA Loan Expert who can prepare custom loan scenarios based on a Veteran’s qualifications. The VA loan expert can then help the Veteran get a VA Loan PreApproval.

If you are a Veteran and are looking to purchase a New Home or Refinance I would love to give you a Rate Quote.  I can be reached by phone or text at 530.227.2476.  Or you can send me a request via email at approved@petemetz.com.