James, a veteran living in San Diego, applies for a Cal-VET loan to purchase a home. During the application process, he learns about a unique feature of the Cal-VET program regarding property title. What should James expect regarding title during the loan period?
Correct Answer
A) The state of California holds legal title until the loan is fully paid
Under the Cal-VET program, the California Department of Veterans Affairs purchases the property and holds legal title. The veteran receives equitable title and occupies the property under a land contract. Legal title transfers to the veteran only after the loan is fully repaid.
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