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Unformatted text preview: ). DVA prepares most of the documents needed in escrow, resulting in minimal closing costs. A small loan origination fee is charged. DVA services the loan until paid in full. Expiration – California veterans must apply for a Cal–Vet loan within 25 years following release from active duty, except that those who were wounded or are disabled or were prisoners of war have 30 years. CHARACTERISTICS OF CAL–VET LOANS
Eligibility – Cal–Vet financing is available to California veterans who served honorably during wartime in the armed forces of the United States. The veteran must be a native Californian or a bona fide resident at the time of entry into the service, and must have participated in a military expedition or campaign for which a medal was authorized by the government. Dynasty School (www.dynastySchool.com) 5-45 REAL ESTATE FINANCE
• • Minors – Minors who lived in California for 6 months immediately preceding entry into service from California are eligible. Spouses – Eligibility extends to unremarried spouses of California veterans who were killed in action, are prisoners of war, or are missing in action. Property – Cal–Vet has generally the same property standards as FHA and DVA. The property must be a single–family dwelling or a unit in a planned unit development or a condominium. Cal–Vet requires a structural report and generally a roof inspection. Maximum purchase price – None Maximum Loan – The maximum home loan is $250,000, Farm loans may go as high as $300,000, and mobile homes up to $70,000. An additional $5000 can be borrowed to install solar heating devices. Down Payment – Cal–Vet has DVA–guaranteed backing, and may use PMI as well in certain cases. On loan amounts up to $240,000, the loans are DVA guaranteed. The down payment requirement is 2%. On loan amounts over $240,000, not to exceed $250,000, the down payment requirement is 3%. In this case, the CDVA uses private mortgage insurance, with a funding fee equal to the DVA fundin...
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This note was uploaded on 12/30/2010 for the course SOC 101 taught by Professor Zhung during the Spring '10 term at Punjab Engineering College.
- Spring '10