Secondary financing (from other sources) may be permitted in connection with the purchase of a farm or home, or a veteran may be permitted to encumber (borrow on equity) an existing CalVet farm or home, if, in the opinion of the Home Loan Division, the veteran is financially able to pay the additional indebtedness without jeopardizing payment of the CalVet Loan installments, and the value of the farm or home is sufficient to secure the CalVet Loan and the additional indebtedness with an adequate security margin. CalVet's interest in the farm or home must be prior and senior to any such encumbrance, and application for CalVet's consent to encumber must be made in writing and approved prior to the recording of any security instrument for any such encumbrance.

Note: Authority cited: Section 700, Military and Veterans Code. Reference: Section 987.73, Military and Veterans Code.

History

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