Since its creation in 1921, CalVet’s Home Loans program has helped more than 440,000 veterans and their families achieve the American dream of homeownership, loaning more than $8.4 billion–and counting–through its first 101 years.
That “counting” will continue for years to come after a recent bond sale provided an additional $255.5 million to help more veterans purchase homes.
The bond sale represents another installment of funding from Proposition 1, a $4 billion measure California voters approved in 2018; $1 billion of which is earmarked for the veterans home loans program. It marked the 27th time in the program’s history that voters were asked to support veterans’ homeownership. Each time voters have shown how much they value those who defended our freedoms. The recent sale, in October, involved general obligation bonds totaling $167.1 million and $88.4 million in Veterans Home Purchase Revenue Bonds. Click here for a detailed explanation of the respective bonds.
Theresa Gunn, deputy secretary for the Home Loans Division, said the success of the recent bond sale speaks volumes about California’s veterans and CalVet’s clients.
“The superb pricing and extraordinary demand our bonds received is attributable to two things: CalVet’s superior, customer-oriented management of the Home Loans program and our veterans,” Gunn said. “Our customer-focused approach to thank our veterans for their service and their exceptional, superior-to-none repayment record has the investment community coveting our bonds. This type of pricing also enables us to provide the best interest rates possible to our veteran customers.”
The bonds will enable CalVet to continue doing so for years to come.
“They position us for the future,” said Mark Walbert, assistant deputy secretary for Program Servicing Operations.
Averaging about 700 new loans annually in recent years, CalVet’s locked-in interest rates, along with its unbeatable fire, flood, and earthquake insurance, have proven to be an excellent financing option. Now, with the Federal Reserve trying to curb inflation by raising the federal funds rate, banks and other commercial lenders are passing the increases along to borrowers. That drives up interest rates for commercial lenders which, in turn, makes CalVet loans more stable and lucrative options.
CalVet’s loans never involve risky adjustable-rate mortgages. Instead, the program’s dedicated agents work closely with veterans throughout the entire process, from the first application right up until the moment they receive the keys to their new home. The agents look beyond credit scores and assess the borrower’s ability to repay. They often mentor veteran applicants to help them better manage their finances and thus qualify for loans they could never get through commercial lenders.