VA or CalVet: two veteran home loans, built differently
A VA loan is made by a private lender with the U.S. Department of Veterans Affairs guaranty behind part of it. CalVet Home Loans is California's own program, run by the California Department of Veterans Affairs, and the home's title stays with CalVet until the loan is paid in full. A veteran buying in San Luis Obispo County can be eligible for both, and CalVet says it can combine the federal benefit with the state's. California Mortgage Solutions, an independent mortgage broker in San Luis Obispo, wrote this comparison for that veteran.
Side by side
| The rule | VA | CalVet |
|---|---|---|
| Who runs it | The U.S. Department of Veterans Affairs. A private lender makes the loan, and the VA guaranty stands behind part of it. | The California Department of Veterans Affairs, under a program signed into law in 1921. It is a state benefit, separate from VA's. |
| Who holds title | You do. It is a mortgage from the lender on a home in your name. | CalVet, until the loan is paid in full. CalVet then sends you the document transferring title. |
| Who is eligible | Veterans, service members and National Guard and Reserve members who meet VA's service rules, some surviving spouses, and others VA lists. A Certificate of Eligibility shows the lender you qualify on service. | A veteran with at least 90 days of active duty, not counting training, and a discharge under honorable conditions. Guard members and reservists ordered to federal active duty can apply. |
| Where the home is | A home you will live in. | A home in California that you will live in. You do not have to have enlisted or lived in California to apply. |
| Monthly mortgage insurance | None. | None. |
| Up-front fee | A one-time VA funding fee, waived for a veteran receiving VA compensation for a service-connected disability and in the other cases VA lists. | A funding fee, charged up front. |
| Fire, flood and earthquake | Not part of the program. You insure the home as you would with any lender. | CalVet offers its own fire and hazard coverage, and disaster coverage for structural damage from covered floods and earthquakes. CalVet says exceptions apply. |
| The property | A home of one to four units, a condominium in a VA-approved project, or a manufactured home. VA assigns the appraiser, and the home has to meet VA's minimum property requirements. | A home you will live in, including, CalVet says, manufactured homes on land and in parks and homes in rural areas. |
| Using it again | Entitlement can be restored and used again. | No limit on the number of times, as long as you do not have a CalVet loan at the time. |
Where each one fits
VA can fit when
- You want the home in your own name from the day you close.
- You meet VA's service requirements but not CalVet's.
CalVet can fit when
- You want CalVet's own fire, flood and earthquake coverage on the home.
- The home is a manufactured home on land or in a park, which CalVet says it lends on.
- You have used CalVet before and no longer have a CalVet loan.
What the two have in common
- Neither charges a monthly mortgage insurance premium.
- Both are for a home you live in, not a rental.
- Both can charge a fee up front.
- The two can be combined: CalVet says it can pair the federal VA benefit with the state's.
Questions
What is the difference between a VA loan and a CalVet loan?
A VA loan is a mortgage from a private lender with the federal VA guaranty behind part of it, and the home is in your name from closing. A CalVet loan comes from the California Department of Veterans Affairs, which keeps title to the home until the loan is paid in full. CalVet is for homes in California, has its own eligibility rules and offers its own fire, flood and earthquake coverage.
Who holds title to a home bought with a CalVet loan?
CalVet does, until the loan is paid in full. You live in the home and make the payments, and once the loan is paid off CalVet sends you the document transferring title.
Can I use CalVet and VA together?
CalVet says it can combine your federal VA benefit with the benefits the state offers. Whether that route fits depends on your eligibility for each, so the place to start is your VA Certificate of Eligibility and CalVet's own eligibility rules.
Does a CalVet loan come with fire and earthquake insurance?
CalVet offers its new borrowers fire and hazard coverage, and disaster coverage for structural damage from covered floods and earthquakes, and it says exceptions apply. A VA loan has no insurance program of its own.
Sources
The publications behind the rules above. Where a row says each lender decides for itself, no publication sets that rule. The figures for the county come from the county's loan limit page, with their own sources.
- U.S. Department of Veterans Affairs, VA home loans: purchase loan, read October 13, 2026.
- U.S. Department of Veterans Affairs, VA funding fee and closing costs, read October 13, 2026.
- CalVet Home Loans, new customers: eligibility and frequently asked questions, read October 13, 2026.
- CalVet Home Loans, our products: insurance, read October 13, 2026.
- CalVet Home Loans, why CalVet, read October 13, 2026.
- CalVet Home Loans, existing customers: your final payment, read October 13, 2026.
- CalVet Home Loans, our history, read October 13, 2026.
Keep reading:Every loan, comparedThe county's loan limits
Other comparisons:FHA vs conventionalFHA vs VAFHA vs USDAVA vs conventionalConventional vs jumboBank statement vs conventionalDSCR vs conventionalHELOC vs cash-out refinanceReverse mortgage vs HELOCDSCR vs bank statementBridge loan vs HELOC
Tell us which of the two fits your file
Tell us about the property and your plans, or call.
No credit pull to get started. This is not a commitment to lend. Equal Housing Opportunity.