Military veterans should consider California VA home loans and CAL VET loan incentives that offer significant savings with lower rates. Take advantage of no down-payment with VA loan eligibility and no out of pocket closing costs on California Veteran loans.
VA mortgage rates are dropping again and are fixed for 15-30-year loan terms. We anticipate that VA home loan amount limits in California will remain high this year. We will help you find lenders that are offering no cost VA loans in California to qualified veterans with competitive CAL VET loan rates.
What Are Cal Vet Loans?
Cal Vet loans, (California Veteran Loans) are a unique home financing initiative that was created for veterans to securing home financing in California.
This specialized loan program offers veterans the advantage of lower-than-average mortgage rates.
The Cal Vet Home Loan isn’t a singular benefit.
If you’ve previously had a Cal Vet loan that was fully repaid according to terms, you’re eligible to re-apply.
Notably, unlike conventional home mortgages provided by traditional lenders or banks, Cal-Vet loans often do not necessitate a down payment.
While certain home loans are restricted to either purchasing homes or acquiring land for building or farming purposes, and many exclude mobile homes, Cal Vet home loans stand out by accommodating various property types.
Qualifying for a CalVet home loan also opens up possibilities to receive funds for purchasing, remodeling, or constructing homes.
Is a Cal Vet loan the same as a VA loan?
The CalVet mortgage program differs from the federal VA loan guarantee program. Instead, Cal Vet serves as a lender for home loan funds. Similar to commercial banks, Cal Vet offers a range of home loan options, including participation in the federal VA guarantee program.
What sets apart a CAL Vet Loan from a VA Loan? When it comes to securing your ideal home, there’s a range of financing options tailored to different needs and circumstances. For veterans and active-duty service members in California, two prevalent choices emerge: the CAL Vet Loan and the VA Loan.
While both loans share the common goal of aiding military personnel in attaining homeownership, they boast unique features and eligibility criteria. In this detailed guide, we’ll delve into the crucial distinctions between CAL Vet Home Loans and VA Loans to empower you to make a well-informed decision regarding which aligns best with your individual circumstances.
Cal Vet Loan vs. California VA Loan
When considering VA home loan options, you might also come across Cal Vet home loan programs. While similar to VA loans, Cal Vet home loans are available exclusively to veterans and active service members in California, unlike VA loans, which are available nationwide.
With a CalVet loan, the state of California acts as the lender, and the Cal-Vet program holds the legal title to your property. These loans often come with stricter loan limits and typically higher interest rates than VA loans. Unlike VA loans in California, which may have varying limits based on county, the Cal-Vet program imposes a standard loan limit regardless of the county where your property is located.
What Are the Current Rates on CalVet Home Loans?
As of January 2025, CalVet Home Loans offer interest rates starting as low as 5.49%, with an Annual Percentage Rate (APR) of 5.855%. These rates are subject to change and may vary based on loan terms and the borrower’s credit profile. For the most current rates and personalized information, it’s recommended to contact CalVet directly or visit their official website.
What Are the CalVet Loan Requirements?
To qualify for a CalVet Home Loan, applicants must:
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Veteran Status: Have served on active duty for at least 90 days, excluding training periods.
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Discharge Status: Possess a discharge under honorable conditions.
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Residency: Be purchasing an owner-occupied property in California.
Additionally, while CalVet does not have a minimum credit score requirement, they conduct manual underwriting to assess creditworthiness. Applicants with prior financial challenges, such as bankruptcies or foreclosures, may still be eligible.
What is the best way for California Veterans to secure the lowest rate mortgage for purchase or refinance?
California Vet home loans offer Veterans access to a home loan with no down-payment and reduced interest rates for purchase and refinance transactions. BD Nationwide will introduce you to CAL VET lenders that offer loans for refinancing, purchasing and debt consolidation. Check VA-interest rates today.
Recently we introduced the Cal-Vet Home Loan that was created to help California Veterans with home financing. These mortgage loans typically offer retired military personnel reduced rate financing with interest rates below market levels and often no down payment is needed for home purchase loans.
CAL-VET Loan Options for 100% Mortgage Financing
Recently the VA expanded eligibility so that nearly any veteran wanting to buy a home in California is eligible.
California Veteran Home Loan FAQs
What are the 2026 VA loan limits in California?
The 2026 VA loan limits California veterans face depend on the county and your entitlement status. Veterans with full entitlement face no VA-imposed loan limit — they can borrow as much as a lender will underwrite. Veterans with partial entitlement are subject to the county conforming limits: $832,750 baseline in most counties, and $1,249,125 in high-cost counties like Los Angeles, Orange, San Francisco, San Mateo, Santa Clara, Alameda, and Marin. Confirm your specific county with the VA at va.gov.
Who qualifies for VA loans in California?
To qualify for VA loans in California in 2026, borrowers generally need 90 consecutive days of active service during wartime or 181 days during peacetime, or 6 years in the National Guard or Reserves. Discharge must be under honorable conditions. The buyer must obtain a Certificate of Eligibility from the VA, occupy the property as a primary residence, and meet lender credit overlays. Most lenders apply a 580 to 620 minimum FICO despite no VA-set credit minimum.
How is a CAL-Vet loan different from a federal VA mortgage loan in California?
CAL-Vet loans are run by the California Department of Veterans Affairs, distinct from federal VA mortgage loans California veterans use through private lenders. CalVet issues tax-exempt bonds to raise capital and lends directly to eligible California veterans — a fundamentally different structure than federal VA loans, which carry a VA guaranty. CalVet often pairs with the federal VA program. Explore broader purchase loan programs for California first-time and repeat buyers to evaluate all options.
What is the VA funding fee for California veteran loans in 2026?
The VA funding fee for California veteran loans in 2026 ranges from 1.25% to 3.3% depending on down payment, first-use vs. subsequent use, and military category. For most first-time users with zero down, the fee is 2.15% of the loan amount. Subsequent users pay 3.3%. Veterans with VA-rated service-connected disability of 10% or higher are exempt from the funding fee entirely. The fee can be financed into the loan rather than paid at closing.
How long does it take to close a California VA mortgage loan today?
Most California VA mortgage loans close in 30 to 35 business days with experienced VA lenders, particularly those in military-heavy areas like San Diego, Sacramento, and Riverside. The national VA closing average runs 45 to 50 days. Closing times depend on document responsiveness, appraisal timing, and lender experience. For active-duty service members and veterans considering refinancing, VA refinance and IRRRL programs for California veterans typically close faster than purchase loans.
What are the VA loan limits San Diego County applies in 2026?
The 2026 VA loan limits San Diego County applies are approximately $1,209,750 for one-unit properties, placing San Diego in the high-cost area tier between the national baseline and the ceiling. With full VA entitlement, San Diego veterans can purchase up to this limit with zero down. Above this ceiling, partial-entitlement borrowers need 25% down on the amount that exceeds the limit. San Diego County’s median home price is approximately $925,000 in 2026, well within VA limits.
Can California veterans combine VA loans with other state programs?
Yes, California veterans can combine federal VA loans with several state programs. The CalVet program offers a separate state-backed loan that can complement federal VA. California also provides a Disabled Veterans’ Property Tax Exemption for veterans rated 100% disabled or compensated at the 100% rate. Some veterans also combine VA loans with CalHFA down payment assistance programs when not using CalVet for added closing-cost help. Always confirm program-stacking eligibility before applying with your lender.
Who pays the points on a CalVet loan?
In a CalVet Home Loan, the borrower is typically responsible for paying any loan origination fees or points. CalVet charges an upfront funding fee, but does not impose private mortgage insurance (PMI) premiums. The specific amount of points and fees can vary based on the loan terms and the borrower’s financial situation. It’s advisable to discuss these details directly with a CalVet loan.
What are the eligibility requirements for Cal-Vet Home Loans?
Veterans who served a minimum of 90 days active duty and received an Honorable Discharge and are eligible for the Cal-Vet Home Loan Program. There may have been changes in the Military & Veterans Code and Calvet loan funding policies that may have made more veterans eligible under state law. Find out if the new CAL VET Loan program is the right mortgage for your needs.
What is the down-payment required on Cal Vet mortgages?
If you meet the eligibility requirements for a 2026 Cal Vet loan, there will be no deposit or money needed for the down-payment. This $0 down home loan has helped a lot of military veterans over the years.
Who generally qualifies for CalVet home loans?
The CalVet eligibility necessitates service under honorable conditions. California National Guard members or reservists who have been deployed to active duty, including Active Guard/Reserve (AGR) duty, are eligible. The details provided on this document are for general information purposes only concerning CalVet Home Loan.
Can I refinance into a Cal-Vet mortgage if I already own home?
No. You are required to apply for Calvet loan prior to purchasing a new home if you are seeking financing via the Cal-Vet Loan Program prior to processing the property or taking title to the home. If you are building a house on land you already own, you need to submit for approval prior to construction completion.
Is there a pre-penalty to refinance my Cal-Vet mortgage down the road?
No. Cal-Vet Home Loans have no prepayment penalties of any kind. You can refinance or pay off this Cal-Vet mortgage loan at any time.
California Veteran Resources:
- More Details on Cal Vet Home Loan Program
- Homeless Veteran Outreach Information
Bad Credit Cal-Vet Loans Available for Military?
According to the Revised VA Pamphlet 26-7, Chapter 4, Credit Underwriting, bad credit may not disqualify a veteran from getting a VA loan. There are ways you may qualify even with bad credit.
- VA Loans for buying or refinancing
- Great Cal Vet Loan Rates
- Appraisal may be waived!
- 100% Veteran Loans
- Multiple Mortgage Programs for People in the Armed Forces
- Learn how to buy a home with limited or no credit
- No Minimum Credit Score with VA loans
Is the Cal-Vet interest rate fixed?
Cal-Vet Loans have an adjustable interest rate. Unlike most variable rate mortgages, the Cal-Vet home mortgage rates have been very stable because the interest rate is not tied to an index, like the MTA, COFI or Treasury.
Home loans granted in 1999 and since then have mortgage rates that are based on the cost of the bond funds and market conditions and are capped at the interest rate increase of 0.5% (1/2 of (see lender)) over the term of the 30-year mortgage loan. There is no fees or cost to apply for a Cal-Vet loan today.
The advantages of the CAL-Vet loan program include:
- Competitive Fixed Rates: CAL Vet offers eligible veterans access to low and competitive fixed interest rates, enhancing affordability over the loan term.
- Minimal Costs: With a mere 1% origination fee, CAL Vet keeps costs low for borrowers. Additionally, unlike other lenders, there are no additional fees such as underwriting, processing, or document fees, further reducing the financial burden.
- Personalized Underwriting: Each loan application undergoes thorough scrutiny by a live underwriter, ensuring that deserving veterans receive approval for loans that make financial sense for their individual circumstances.
- Comprehensive Insurance: CAL Vet home loans typically include robust Fire & Hazard insurance along with Disaster Indemnity coverage for events such as floods and earthquakes, offering unmatched protection in the industry. Moreover, these insurance policies often feature low deductibles, providing added peace of mind to borrowers.
Both Cal-Vet Loans and VA Loans offer valuable opportunities for veterans and active-duty service members to achieve homeownership. While Cal Vet Loans are exclusive to California residents and come with state-specific benefits, VA mortgages are available nationally and are also backed by the federal government. It’s important to carefully evaluate your location, eligibility, and financial goals to select the VA loan program that best meets your needs.
Reviewed by John Tappan NMLS# 394171 | Updated June 2026
This information is general in nature and current as of 2026. California VA loan limits, CalVet program rules, funding fees, lender overlays, and qualification standards vary by county, lender, and individual circumstances. The figures above are not a quote, an offer of credit, or a commitment to lend. Veterans should verify their entitlement status and county-specific limits directly with the VA at va.gov and the California Department of Veterans Affairs at calvet.ca.gov. BD Nationwide connects veterans with California VA lenders and does not directly originate loans.