Mike’s Real Estate Show

Last year 1200 California homebuyers took advantage of the CalVet Loan offered by the California Department of Veterans Affairs and with a correcting value marketplace and interest rates starting at 5.45% they are once again gaining popularity for Vets.
http://www.cdva.ca.gov/calvetloans/

Open to all active service, National Guard and Active Guard/Reserve, and honorably discharged veterans who have served a minimum of 90 days of active duty (including those who served during peacetime and who entered the military outside California or have not previously livered here) is a loan program which fell out of favor do to the market outpacing the relatively small loan maximum amount of $521,500. But with the market retrenching, the home prices for many areas are now bringing this loan program back to the fore!

  There are 3 basic programs:
CalVet/VA: no-down payment program this requires a “Certificate of Eligibility” from U.S. Veterans’ Administration. This covers new and existing homes with a 1% origination fee plus other funding fees
CalVet 97: 3% down payment—offers more in the way of what products you can buy with the CalVet program.
CalVet 80/20 Requires 20% Down Payment.

  Home maximum loan amounts are $521,250.00 and some secondary mortgages are acceptable.  A farm loan is $625,000.00 Even manufactured homes in mobile home parks will allow a maximum loan amount of $175,000.
  However, this is no “magic pill” as buyers need to qualify for the loan and show stable incomes.

Information on non-conventional loans
The California Department of Veterans Affairs and its CalVet Home Loan program is committed to helping veterans and active duty personnel attain the American Dream of home ownership and while we currently don’t have the legal authority to refinance homeowners who are in difficult situations, we are exploring possible legislative solutions. In the mean time if you need assistance you can call or access the following websites:

The “HOPE Hotline” (1-888-995-HOPE or www.995HOPE.org), which provides free mortgage counseling 24 hours a day, seven days a week.
A website with helpful information for prospective homebuyers, as well as homeowners who are experiencing difficulty in keeping payments current: www.yourhome.ca.gov and the Spanish language version: www.sucasa.ca.gov.
For those service members who find themselves in a difficult situation as a result of a non-conventional loan or because of activation and deployment, there are certain protections within state and federal law that could help you including:

The Service members Civil Relief Act of 2003 (SCRA) formerly known as the Soldiers’ and Sailors’ Civil Relief Act of 1940 (SSCRA) is a federal law that gives all military members some important rights as they enter active duty or are called to deployment.
One benefit of the SCRA is the ability to reduce your mortgage interest rate to 6% under certain circumstances.
The California Military Families Financial Relief Act allows for the deferral of mortgage payments for members of the reserves or National Guard who are called to active duty.
If you need assistance please contact the CalVet Customer Services Unit at (800) 952- 5626 or (916) 503-8362.