Although the VA Home Loan program operates at a federal level more often than not, Texas and California have some VA loan programs of their own. Considered leviathans of military installations—California has more than 20 and Texas has more than a dozen—it’s no surprise that these states developed exclusive programs that further aid military homebuyers.
CalVet is a VA-certified lender and operates as part of California’s state government. It works with agents and potential homebuyers to maximize VA loan benefits for California service members and veterans. CalVet approves certain mortgage brokers, who can then process the loans.
More importantly, CalVet offers VA loans with zero down payments and competitive interest rates. For borrowers who need help with a down payment, they can get a gift from any source other than the seller. Buyers who fulfill the requirements for Revenue Bond-funded loans get especially low interest rates.
Also, CalVet offers construction loans for military homebuyers who want to build on their loan and use one loan package to finance the build. Rehabilitation loans are available too. The borrower’s loan value is based on an appraisal of the improved property. Prequalifying for a CalVet loan is free, and the maximum loan value is $521,250.
Started in 1983, the Veterans Housing Assistance Program (VHAP) in Texas has provided more than 200,000 loans to Texas veterans. The exclusive program in the Lone Star state comes with a limit of $325,000. VHAP loans must originate in conjunction with the VA, FHA or a traditional lender who works with the Texas Veterans Land Board (VLB).
VHAP loans come with fixed rates for 15, 20, 25 or 30 years. Much like VA and CalVet loans, Tex Vet loans come with zero or minimal down payments and low interest rates. To get a VHAP loan, the home must be the buyer’s primary residence that they occupy for at least three years.
As two of the most military-friendly states, California and Texas do a little extra to show their support for their veterans and help them get the most of their VA loan benefits.