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Home Improvement Loans
House with a Hammer inside
Is your property in need of a new roof or heat and air system?  How about a renovation of your kitchen or bathroom.
  If so, we can help with additional financing through CalVet. This financing is:
        • Simple to apply for and process
        • Low in cost with a competitive fixed rate
        • An excellent option when desiring to extend your CalVet loan and continue receiving our superior insurance products


Eligibility: Home Improvement loans (HIL) are available to active CalVet Contract holders and veterans who do not have a current CalVet Home loan and can transfer title of their property to CalVet in a 1st lien position, in order to enter into a new Land Sales Contract.

Properties: The program is available for primary homes, including the main dwelling on Farm properties, Mobile Homes located on land owned by the veteran purchaser and for Mobile Homes in Rental park.
Mobile Homes in a Park: all improvements are restricted to health and safety items only.

Acceptable Improvements: Improvements must enhance the basic livability or energy efficiency of the property including maintenance items such as painting, re-roofing, and general repairs, and/or addition of living space. Examples include the renovation of baths, kitchen, plumbing and electrical systems including well for domestic water supply, installation or replacement of heating or air-conditioning systems, including solar energy system; installation of insulation, weather stripping and thermal windows; earthquake retrofitting, including but not limited to, water heater strapping, foundation strap/bolting, and truss reinforcements; pest control work necessary to cure an infestation or repair damage. Other acceptable improvements that would increase the basic livability of the property include carport, garage, driveway, entry walks, patio, landscaping, fence, retaining wall, sprinkler system, garden planter, and curbing. In the case of Farm and Mobile Home in Park type properties, repairs and improvements must be to the main dwelling.

Unacceptable Improvements: Improvements not covered are those items that are strictly for recreation or entertainment, such as swimming pools, saunas, hot tubs, pool houses, and tennis courts, or improvements to farm property for the purpose of increasing agricultural production.  Also not included are items that can be considered personal property which includes non- built in appliances and curtains or drapes. Loan proceeds cannot be used for escrow, title insurance, appraisals, or any other fees associated with loan processing and/or transferring title to CalVet.

Loan Costs: A non-refundable $25 Home Improvement Application fee and an origination fee equal to 1.5% of the loan amount will be charged on all home improvement loans.

Interest Rate: Ask us about the current rate charged on new CalVet loans for the funding source used for the loan.

Prepayment Penalty: There is no prepayment penalty fee charged in connection with the Home Improvement Loan.

Maximum Loan to Value Ratio:  The combined total of the CalVet loan balance, the Home Improvement Loan and the balance of any existing subordinate financing cannot exceed 90% of the enhanced market value of the subject property.

Loan Terms: The maximum loan term for Home Improvement Loans is 25 years (300 months). The minimum loan amount is $5,000 and a maximum loan amount of $150,000.  The repayment term of the loan will vary based on the amount of the loan requested.  Your representative will review the options at time of review of your package.

Impound Installments:  When the basic CalVet loan is paid in full prior to the payoff of the improvement loan, the improvement loan installment shall be increased to include impounds for fire insurance, disaster indemnity fund, and property tax portions (if applicable) of the former basic installment.

Fire Insurance and Disaster Indemnity coverage: The amount of guaranteed replacement cost coverage will be reassessed by CalVet and increased in accordance with the completed improvements to maintain full replacement cost coverage.

Life and Disability Coverage:  All HIL's represent a new and separate CalVet Loan Contract; as such, all veteran applicants under the age of 62 have the option to participate in the life insurance program that will pay off the loan in the event of death of the insured. Coverage will cease when the insured reaches age 70.  Coverage is dependent upon the review of the medical history statement by our insurance carrier.  If you have a qualifying military service-connected disability, it will not be considered in the evaluation of your evidence of insurability, as required under Section 987.88, Article 3.1 of the Veteran's Farm and Home Purchase Act of 1974.  When all the funds are disbursed, you will be provided an application to complete and submit a medical history statement directly to the Standard Insurance Company. Your spouse or domestic partner may also apply for life insurance.  To download a Standard Insurance brochure or Medical History Application, please visit our Life & Disability Insurance page.

Apply before work begins: Your loan application must be approved prior to the start of any work. Improvement Loan funds cannot be used to refinance existing debts or costs incurred for repair/improvement work in progress or previously completed.

Liens and Encumbrances: Approval of Home Improvement loan advances is required by all junior lien holders.   An "Approval to make Home Improvement Loan Advance" letter will be sent to all junior lien holders. Their written approval is required before the Home Improvement Loan will be considered.  Please provide statement showing contact name, address and loan information for all lien holders.

Current CalVet Home Loan: The current CalVet loan must not be paid in full before the first advance on the home improvement loan is made.   Since total processing time, (including obtaining estimates, securing loan approval, and commencing work to disburse loan funds, may take 60 to 90 days). You must apply at least three months before your current CalVet Home Loan will be paid in full.  A payoff of your basic CalVet loan prior to disbursement of the first advance may result in additional fees as it will require an escrow account to be established to transfer title to CalVet. Improvement loan proceeds cannot be used to cover any of the escrow costs.

Loan Limitations: Only the original CalVet Home Loan and one Home Improvement Loan may be in place at one time. If the original CalVet Home Loan is paid in full, a Home Improvement Loan can be allowed.

Inspection Requirements: All work carried out under the Home Improvement Loan program must conform to the appropriate local building codes. Work requiring a construction permit must be done under the inspection of the local building department.  Final sign off of permit and certificate of occupancy will be required at project completion, as applicable.

Payments to Contractors and Vendors: The department can pay only for materials provided by licensed contractors or vendors as work progresses or is completed.   Three progress payments (or reimbursements) will be allowed for loans of $5,000 to $50,000, and ten for loans of $50,000 to 150,000.  Ten percent (10%) of the total loan amount will be withheld on projects as determined by the department and those projects where a notice of completion has been filed and the mechanics lien period has expired. Contract holders may be reimbursed for amounts paid to contractors or for materials purchased.   Reimbursement for labor will be made only if paid to a contractor (including a temp agency) and with the receipt of complete payroll records including evidence of collection and payment or appropriate payroll taxes. 

Cost Estimates: One bid or cost estimate prepared by the licensed contractor chosen to do the work must be submitted.  We highly recommend that applicants obtain additional bids and compare the costs of proposed materials and services.  We also recommend that applicants check the references of all contactors before they enter into a contract for the work.  Additional information on selecting a contractor is available on the California Contractors Licensing Board website at  If the total cost of all improvements exceeds the maximum home improvement loan, the difference must be paid by the contract holder before the department will release any payments.

Time Limit for Completion: All improvements are expected to be completed within 180 days of approval.  




​CalVet Home Loans

Loan Origination Unit

1227 O Street Sacramento, CA 95814

866-653-2510 (Toll Free)

916-503-8359 (Direct)

916-651-9085 (Fax)

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Home Improvement Loans