A California veteran is exploring loan options and learns about the Cal-VET loan program. Which statement BEST describes how the Cal-VET program differs from a federal VA loan?
Correct Answer
B) The state of California purchases the property and sells it to the veteran on a land contract
The Cal-VET loan program is unique because the California Department of Veterans Affairs actually purchases the property and then sells it to the veteran under a land contract (contract of sale). The veteran does not receive a traditional mortgage or deed of trust; instead, the state holds title until the contract is fulfilled.
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