Your suspicions are unfortuantely correct.
While VA loans are like normal loans in that a loan officer can charge whatever they want, and they are written and sold like normal mortgages, CalVET loans are unqiue in that they are made only by CalVET and only directly to the veteran.
-So, in other words, a normal broker or lender cannot offer a CalVET loan. They can package and refer one to CalVET for a very small fixed commission. That is it.
The CalVET of course will not offer VA financing, because it is not a lender. CalVET is funded through california bond money.
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The deed problem the other agent referenced is addressed here, in the CalVEt website FAQ:
"CalVet uses a Contract of Sale as the financing instrument for our loans. What that means is that CalVet purchases the home you selected and takes legal title to the property at close of escrow, and then sells the property to you using a contract of sale. When the loan is paid in full, either when the last payment is made or if you refinance or sell, we issue a grant deed to transfer legal title to you. A document called a Memorandum Agreement of Sale is recorded to show that the contract exists, and you hold what is referred to as the equitable title to the property which gives you all the rights of ownership."
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In closing, it is easy to see why you will not get straight answers from really anyone offering either program. It is true that right now any government/bond funded loan is taking a long time to get now, 60-90 days and that you will face some difficulties with the CalVET requirements. But, you will have trouble with sellers accepting VA loan requirements also. Both VA and Calvet are 100% fiancing, both carry a mandatory VA Funding Fee.
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Good luck. Semper Fi

Thu Apr 24 2008, 13:26

Thank you! I am aware of many of the differences in the two, but surprized that a few lenders seemed unwilling to help me with either/or and wanted to steer me in one direction only. I wondered if it had anything to do with their commissions.

Thu Apr 24 2008, 11:48

I recommend that you talk to Randy Randazzo at Vitek Mortgage: 601.7091. He is a Cal Vet specialist. When I spoke with Randy last month about a Cal Vet versus a VA loan, he said the rates were better on a VA. Not only that, but you can get a VA loan with zero down, and you get actual title to the property with a VA loan.

A Cal Vet loan gives you only equitable title on a contract, not a deed.

I presented a couple offers a few weeks back for a Cal Vet buyer, and sellers are shying away from accepting them because Cal Vet loans have too many requirements. These are things the buyer can ask for regardless of which type of loan one chooses, so it doesn't really matter, but it seems to make a difference to buyers.

On top of this, buyers must pay (or they can ask the seller to pay) a steep funding fee with a Cal Vet loan.

Thu Apr 24 2008, 06:31

Veterans loans are a niche. Both VA and Cal-Vet have advantages. - Cal Vet offers insurance on their loans and is subsidized in the interest rate by tax free state sponsored bonds. VA offers loan guarantees that encourage lenders to make 100% loans to veterans with good credit and sufficient income to repay.

These advantages faded to insignificance during the real estate bubble when anyone who could fog a mirror (veteran or not) could get a conventional 100% loan. Now that the credit crunch has almost eliminated the 100% loan, the VA is one of the few ways to still come in with little or no cash.

A cal-vet loan may be more appropriate if you are seeking to buy a manufactured home, a farm or house with 5% or more down payment.

I expect several of the Trulia blogging loan officers will have the expertise to guide you with your individual need.

Wed Apr 23 2008, 23:26