The CalVet program is a California government-operated financing scheme which issues bonds to fund variable rate mortgages made to veterans. CalVet mortgages are structured as archaic land sales contracts with title vested in the name of CalVet, not the veteran buyer. CalVet loans are more stringent and restrictive against the veteran-borrower ‘s  rights of possession and equity financing arrangements than a mortgage insured by the Federal Housing Administration (FHA) or the federal Veterans Administration (VA). They are also peculiarly all variable interest rate loans, which should not be the staple of any stable mortgage  program sold to anyone and especially not of one that is run by the state government. The CalVet program is an unnecessary burden on both the state and on veterans and should be discontinued and phased into the private banking sector over time.

Related article:
Chapter 41 of first tuesday’s Finance, 5th edition