Find a mortgage professional and look into all your options. The CAL-VET can be a great option if you have little/no down payment.....but there are many options out there right now, so look into what's best for you.
I would suggest you start with your bank or credit union and then go from there.
-Loan is a land installment contract, which means if you ever default any money you have put into the property converts to rent.
-Title is held by Cal Vet, you must get their permission to modify or encumber the property since if you default they are on the hook for it. Also, you must reside in the house, if you rent or move Cal Vet will terminate the contract as only the veteran should benefit.
-They are not a bank, the funding is originated by bonds sold by the state of California, thus if you sell before a certain period you may owe taxes you wouldn't on a home sale.
-Rates and funding fees not really competitive when APR's are low like now.
Trulia has great information but don't stop here. Meet with a mortgage advisor who will show you features of both programs so you can make a decision which one is best for you.
All the Best!
One drawback to the Cal-Vet loan vs. a VA loan is the interest rate. Looking at the Cal-Vet rates today, they range from 5.750% to 6.200% depending on the bond funds source.
With VA, the interest rates are around 4.750% today.
The upside, though, is Cal-Vet does have a rehab loan so if the property needs some work, the rehab loan would be a possible solution.
Nothing wrong with a calvet loan. It usually tales 30-45 days to process. You can do 0 down if you like. there is a 2.25% funding that is added on to your loan amount. The good thing is there is no monthly MIP as yu have with FHA. the going interest rate is about 5.75% right now. I believe VA is about 5.5% and also has 0 down. Both are good loans. Oh the funding fee is waived if the vet is 10% disabled or more.
Hope that helps you!