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CAL-VET HOME LOANS...SERVING THOSE WHO SERVED FOR 70 YEARS

 CAL-VET HOME LOANS...SERVING THOSE WHO SERVED FOR 70 YEARS
 SACRAMENTO, Calif., March 3 /PRNewswire/ -- History lesson for today. Believe it or not, Cal-Vet granted the first home loan to a California veteran on June 30, 1922.
 The first loan went to Owen W. Myers, a 100 percent disabled veteran of World War I who used Cal-Vet to purchase a house on the east side of Los Angeles. The selling price was $4,120. Myers was scheduled to make 240 payments of $25.94 per month at 5 percent interest. However, he repaid the loan within 15 years.
 Since then, the home loan program for California wartime veterans has "served those who served" for 70 years. From doughboys in the trenches of Europe to "top guns" over the skies of Baghdad, nearly 400,000 of these "Cal-Vets," both men and women, have purchased a farm or home through the low-cost and low-interest program.
 "Of this, all Californians can be extremely proud," said the director of the California Department of Veterans Affairs (CDVA), Rear Admiral Benjamin T. Hacker, U.S. Navy (Retired).
 Since the first loan in 1922, Cal-Vet has offered one of the most competitive interest rates in California's dynamic real estate market. Cal-Vet's interest rate may vary over the term of the loan but has never exceeded 8 percent, the current rate. Officials at CDVA do not see anything on the horizon which will cause an increase in the current rate.
 Cal-Vet's maximum loan amounts are established by state law. Presently, the maximum loan amount on single family dwellings, including condominiums, townhouses, half-plexes and mobile homes on land owned by the veteran, is $125,000. The maximum loan amount for farms is $200,000. Cal-Vet has a maximum loan amount of $70,000 for mobile homes located in mobile home parks. Up to an additional $5,000 is available for homes equipped with solar energy heating devices.
 Obviously, $125,000 is not a large enough loan to help veterans in many of the higher cost areas of California. Hopefully, legislation will increase the loan amount this year. As currently amended, Assembly Bill 1908 would increase the Cal-Vet loan limit to 90 percent of the statewide median purchase price each June. If enacted, this would provide a maximum loan of approximately $183,000 statewide.
 Cal-Vet allows, and many Cal-Vet borrowers use, secondary financing behind the Cal-Vet loan. Many banks and savings and loans will provide such financing. However, Cal-Vet requires the total of the Cal-Vet loan and the second loan not exceed 90 percent of the market value of the property.
 Generally, Cal-Vet requires a 5 percent down payment. However, if Cal-Vet determines the market value of the property exceeds the purchase price and loan amount requested by the veteran, Cal-Vet may waive the down payment requirement and make a 100 percent loan.
 There are several eligibility requirements and specific features of the Cal-Vet loan program which CDVA administers in accordance with state and federal laws.
 Under California law, a veteran must have either been a native born Californian or must have been a bona fide resident of California at the time he or she entered or re-entered a qualifying period of active duty.
 Cal-Vet requires a copy of the veteran's military separation documents to determine the place of birth, residency and dates of service. The veteran must also have been released from active duty under honorable conditions.
 If military records do not clearly demonstrate bona fide California residency, Cal-Vet will request the veteran provide further documentation. Such documentation might be evidence the veteran worked or went to school in California at the time of entry into active duty. The staff in Cal-Vet's 11 district offices will assist the veteran in proving residency.
 Currently, the qualifying war periods are:
 -- Persian Gulf War, Aug. 2, 1990 through...
 -- Vietnam War, Aug. 5, 1964, through May 7, 1975.
 -- Korean War, from June 15, 1950, through Jan. 31, 1955.
 -- World War II, from Dec. 7, 1941, through Dec. 31, 1946.
 Veterans who have served during one of these qualifying war periods are not required to have served overseas. The entire period of active duty could have been spent on a military base in the United States.
 If a veteran did not serve during one of these qualifying war periods, he or she may be eligible for a Cal-Vet loan if they received a campaign or expeditionary medal for service in a conflict which occurred between these war periods. Recent examples of such conflicts are Panama, Grenada and Lebanon.
 Veterans serving during one of the qualifying war periods must have served at least 90 consecutive days on active duty, unless they were discharged earlier because of a service-connected disability.
 Members of the Reserve or National Guard called to active duty for Desert Shield or Desert Storm and any similar operation in the future, and veterans who received campaign or expeditionary medals, may be eligible even if they did not complete 90 consecutive days on active duty.
 The department recognizes that those called to active duty from the Reserve or Guard may not be required to serve for a full 90 days, especially if conflicts or wars are as brief as the Persian Gulf hostilities.
 Veterans and realtors may obtain more information by contacting any of the 11 Cal-Vet offices as follows:
 -- Bakersfield, 93309, 1100 Mohawk St., Suite 260, 805-395-2869
 -- Concord, 94520, 2520 Stanwell Drive, Suite 160, 510-676-5152
 -- Fresno, 93710, 1752 E. Bullard Ave., Suite 102, 209-445-5466
 -- Redding, 96002, 847 Mistletoe Lane, 916-225-2800
 -- Citrus Heights, 95610, 6939 Sunrise Blvd., Suite 105,
 916-722-1841
 -- Sacramento, 95823, 4433 Florin Road, Suite 170, 916-322-1797
 -- San Bernardino, 92408, 268 W. Hospitality Lane, Suite 105,
 714-383-4282
 -- San Diego, 92123, 5095 Murphy Canyon Road, Suite 340,
 619-237-7621
 -- Santa Clara, 95050, 68 N. Winchester Blvd., 408-277-1282
 -- Santa Fe Springs, 90670, 12070 Telegraph Road, Suite 210
 1) Los Angeles County, 213-944-3585 or 818-575-4838
 2) Orange County, 714-761-0109
 -- Ventura, 93003, 5720 Ralston St., Suite 101, 805-654-4662
 Cal-Vet can also prescreen an application on the spot at no charge. The toll-free information unit at 800-952-LOAN can provide general information on Cal-Vet eligibility.
 -0- 3/3/92
 /CONTACT: Steve Janosco of California Department of Veterans Affairs, 916-653-2561/ CO: California Department of Veterans Affairs ST: California IN: SU:


SM -- NYHFNS8 -- 4271 03/03/92 07:19 EST
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Date:Mar 3, 1992
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