California Veteran Housing Assistance: Loans, Grants, and Tax Exemption

California veteran housing assistance covers far more than a mortgage. Between the state-run CalVet Home Loan, the federal VA loan, disability adaptation grants, a property tax exemption for disabled veterans, and federal programs for veterans who are homeless or at risk, there are several distinct benefits, each with its own rules. Most veterans qualify for more than one. The practical first step is figuring out which programs fit your situation, and a County Veteran Service Officer can help you sort that out at no cost.

Buying a Home: CalVet Loan and the Federal VA Loan

Two very different mortgage programs are open to California veterans, and they are not interchangeable.

The Federal VA Loan

The federal VA-backed purchase loan is what most people mean by “VA loan.” It runs through private lenders with a VA guarantee, works anywhere in the country, and carries the benefits veterans expect: no down payment required as long as the price does not exceed the appraised value, no private mortgage insurance, no prepayment penalty, and generally better interest rates than a conventional mortgage.¹

The main cost is a one-time VA funding fee, which scales with how much you put down and whether you’ve used the benefit before:

First use, less than 5% down: 2.15% of the loan amount
Subsequent use, less than 5% down: 3.3%
5% to 9.99% down (any use): 1.5%
10% or more down (any use): 1.25%

On a $600,000 purchase with nothing down, a first-time user pays $12,900; a repeat user pays $19,800. The fee can be rolled into the loan balance. Veterans receiving VA disability compensation, surviving spouses receiving Dependency and Indemnity Compensation, and active-duty Purple Heart recipients are exempt.²

The CalVet Home Loan

California runs its own mortgage program through the California Department of Veterans Affairs, and it works nothing like the federal VA loan. CalVet is a direct loan from the state, not a guarantee behind a private lender. The state purchases the property, holds legal title, and issues the veteran a recorded contract of sale. You occupy and maintain the home like any other homeowner, but full legal title transfers only after the loan is paid off.³

Two features stand out. First, CalVet advertises below-market interest rates (recently as low as 4.89%). Second, fire and hazard insurance for the full replacement cost is bundled into the loan through the state’s program, and CalVet also maintains a Disaster Indemnity Fund that covers structural damage from specified perils. In a state where private wildfire coverage has become expensive or hard to get, that bundled protection has real financial weight.³

Eligibility is broader than most veterans assume. You qualify if you served at least 90 days of active duty (excluding training), received an honorable discharge, and are buying an owner-occupied home in California. You do not have to live in California when you apply, and there is no time limit after separation from service. You cannot hold two CalVet loans at once, but once one is paid off you can use the program again.⁴

Which One To Use

The federal VA loan gives you flexibility on lender and terms and portability across states. CalVet’s pitch is the interest rate, the bundled insurance, and sometimes more forgiving qualification standards. The contract-of-sale structure means you don’t hold full legal title while paying, which can add friction if you later sell or refinance. Most veterans price out both before deciding.

Property Tax Exemption for Disabled Veterans

If you have a 100% service-connected disability rating, or you’re compensated at the 100% rate due to unemployability, California reduces the assessed value of your primary residence. Unmarried surviving spouses of qualifying veterans can claim it too.⁵

For 2026, the reductions are:

Basic exemption: $180,671 off assessed value
Low-income exemption: $271,009 off assessed value, available when prior-year household income was $81,131 or less

At California’s 1% base property tax rate, that’s roughly $1,807 or $2,710 a year in savings, and the figures adjust annually.⁶ The exemption applies only to a principal residence owned by the veteran, the spouse, or both jointly.⁷

Grants To Adapt a Home for a Service-Connected Disability

Veterans with certain severe service-connected disabilities can receive federal grants to buy, build, or modify an accessible home. The grants do not have to be repaid, and each can be used up to six times over a lifetime.⁸

Specially Adapted Housing (SAH) Grant

The SAH grant provides up to $126,526 in fiscal year 2026. Qualifying conditions include the loss or loss of use of more than one limb, blindness in both eyes with 20/200 acuity or less, certain severe burns, or the loss or loss of use of a lower leg combined with lasting effects of an organic disease or injury. Post-9/11 veterans who lost the use of one lower extremity in a way that makes balance or walking without assistive devices impossible also qualify. You must own or be about to own the home.⁸

Special Home Adaptation (SHA) Grant

The SHA grant provides up to $25,350 in fiscal year 2026 and covers a different set of disabilities: the loss or loss of use of both hands, certain severe burns, or certain respiratory injuries. A family member can own the home, which matters for veterans living with relatives.⁸

Help If You’re Homeless or About To Be

Three federal programs address different stages of housing instability.

HUD-VASH pairs a Housing Choice Voucher with ongoing VA case management and clinical services. It’s built for veterans experiencing chronic homelessness, and the subsidy is permanent rather than temporary. Tenants pay roughly 30% of their adjusted monthly income toward rent, with the voucher covering the rest up to a local payment standard.⁹

The Grant and Per Diem (GPD) program funds community organizations to run transitional housing for veterans who need immediate shelter while they work toward permanent placement. GPD housing is temporary, not permanent.¹⁰

Supportive Services for Veteran Families (SSVF) serves veteran households with incomes below 80% of area median income who are homeless or on the verge of it.¹¹ SSVF grantees offer case management, outreach, and financial planning, plus temporary financial help for security deposits, rental arrears, utility payments, and emergency supplies. The financial assistance is designed to resolve a housing crisis at a single point in time rather than provide ongoing monthly support.¹²

Discharge Status and Your DD-214

Nearly every veteran housing benefit turns on one document: the DD-214, the Certificate of Release or Discharge from Active Duty. It records your service dates, branch, and character of discharge.¹³ You generally need an Honorable or General (Under Honorable Conditions) discharge to access VA and CalVet housing programs. Other Than Honorable, Bad Conduct, or Dishonorable discharges disqualify you from most benefits.

If your discharge blocks you, you can apply for an upgrade through the review board for your branch. The VA has an online tool that walks you through the steps for your specific situation, and a Veterans Service Organization can help you prepare the application.¹⁴ Upgrades aren’t guaranteed, but if that discharge is the only thing between you and a benefit, it’s worth pursuing.

Where To Start: Your County Veteran Service Officer

Every California county has a County Veteran Service Officer (CVSO). These are accredited professionals who connect veterans to state and federal benefits, including all the housing programs above. They will review your DD-214, tell you which programs you qualify for, and walk you through the paperwork. If you’ve lost your DD-214, they can help you request a replacement from the National Archives. CVSOs do not charge for their services.¹⁵

To find your local CVSO, call 1-844-SERV-VET (1-844-737-8838).¹⁵

1
Veterans Affairs. Purchase Loan
2
Veterans Affairs. VA Funding Fee and Loan Closing Costs
3
CalVet. CalVet Home Loan Regulations
4
CA.gov. Get a CalVet Home Loan
5
California State Board of Equalization. Disabled Veterans Exemption
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California State Board of Equalization. LTA 2025/014 – Disabled Veterans Exemption Increases for 2026
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California Legislative Information. California Revenue and Taxation Code 205.5
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Veterans Affairs. Disability Housing Grants for Veterans
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U.S. Department of Housing and Urban Development. HUD-Veterans Affairs Supportive Housing (HUD-VASH)
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Department of Veterans Affairs. Grant and Per Diem National Program Operational Update – March 2026
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Department of Veterans Affairs. VA SSVF Program Guide
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Department of Veterans Affairs. SSVF Guidance on Exclusion of Service-Connected Disability Income
13
National Archives. DD Form 214 Discharge Papers and Separation Documents
14
Veterans Affairs. Request a Discharge Upgrade or Correction
15
California Association of County Veterans Service Officers. About the California Association of County Veterans Service Officers