Lack of a credit history shall not prevent an applicant from getting a CalVet Loan. However, the Home Loan Division shall deny an application for a loan if an applicant's credit references give adverse reports and the applicant has a balance available for family support which is less than forty percent (40%) of adjusted gross income. If credit references give positive reports, and the applicant has a balance available for family support which is less than forty percent (40%) of adjusted gross income, then the Home Loan Division shall use the factors mentioned in section 309.5(d) to make the loan decision. “Total gross income” is defined as the total monthly monetary income or salary of the applicant. “Adjusted gross income” is defined as total gross income less payroll deductions from income as indicated on the applicant's payroll check (i.e. federal and state taxes; retirement and/or social security; deferred compensation; charitable contributions; job-related expenses). “Balance available for family support” means the applicant's adjusted gross income minus the estimated monthly payment on the CalVet Loan, and minus monthly payments for debts and obligations not necessary for family support, such as, boat, motor-home or vacation home loans.

Note: Authority cited: Section 700, Military and Veterans Code. Reference: Section 987.56, Military and Veterans Code.

History

1. New section filed 11-12-91; operative 12-12-91 (Register 92, No. 7).

2. Amendment filed 3-24-2026; operative 7-1-2026 (Register 2026, No. 13).