Question

When a veteran wishes to purchase a home and use his or her California veteran’s benefits, he or she would make application to the:

Selections

A. California Veterans Administration

B. Department of Veterans Affairs

C. Federal Housing Administration

D. An institutional lender 

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Answer: B

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5 Keys Summary

• The specific state-sponsored loan program for eligible California veterans is the California Farm and Home Purchase Program, commonly known as CAL-VET.

• For CAL-VET loans, which are provided by the State of California, the application and eligibility process involves the California government’s Department of Veterans Affairs (DVA).

• This CAL-VET program is state-sponsored (State sponsor) and uses funds raised through the sale of state bonds (Sale of State Bonds).

• CAL-VET loans are unique because the State (the seller) retains legal title to the property until the loan is fully paid off, and the security instrument used is a Real Property Sales Contract (or land contract), not a Trust Deed.

• The application for the federal VA loan guarantee program, if that is the intent, is related to the U.S. Department of Veterans Affairs, not the Federal Housing Administration (FHA), which insures loans.

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