Veteran_ Resource_ book_2014

LOW FEES AND CLOSING COSTS
CalVet obtains a loan guaranty on all loans from the VA. On other loans, CalVet
purchases private mortgage insurance. In all cases, a loan guaranty fee of
between 1.25% and 3.30% of the loan amount will be charged. Under certain
circumstances, the fee may be added to the loan amount. This is a one-time fee,
and will not affect the interest rate or monthly installment unless it is financed
in the loan. A loan origination fee (common with most loans) of one percent of the
loan amount is also charged. This fee must be paid in escrow.
CalVet does not charge many of the closing costs charged by others, e.g.,
underwriting fee, processing fee, tax service fee, flood certification fee,
document fee.
INTEREST RATES
Interest rates for new loans are reviewed frequently to ensure that the rates
CalVet offers are competitive in the market. Interest rates are subject to
change without notice. Current rates are posted on the CalVet website,
www.calvet.ca.gov (Home Loans). A borrower’s rate is “locked in” the date of
application, and if rates are reduced while the loan is being processed, the
borrower will receive the benefit of the lower rate. While technically a variable
rate, there is a 50% cap on increases during the term of the loan.
First-time homebuyers are eligible if the home falls within lower purchase price
limits in some counties and their income does not exceed the limits. See
“Average Area Purchase Price Limitations - Single Family Residences Revenue
Bond Funded Loans” for information on the limits in the veteran’s county of
residence or answers to other questions, call CalVet at (916) 503-8359 or
(866) 653-2510 toll free.
FREE PRE-APPROVAL
In the current real estate market, borrowers need to be pre-approved before
placing an offer on a property. CalVet offers pre-approvals at no cost. By
completing an application and providing military documents, income and asset
verification, CalVet will determine the veteran’s eligibility, credit worthiness and
loan amount; and CalVet will extend a pre-approval letter to those who meet the
guidelines. A preapproval application can be downloaded at www.calvet.ca.gov
(Home Loans). Call (916) 503-8359 or (866) 653-2510 toll free to have a preapproval
package sent.
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