How to Buy a Home in Riverside County With a VA or CalVet Loan: Entitlement, the Funding Fee, Residual Income, and What Prop 1 Means for Veterans (November 2026)

Veterans Day was this week, and California voters just gave veteran homebuyers some news worth knowing. Proposition 1, the Veterans and Affordable Housing Bond Act of 2026, passed on November 3 with about 61% of the vote. It authorizes $11.25 billion in state bonds, and $1.25 billion of that goes to home loans for veterans through the CalVet Home Loan program. The veterans' share is repaid by the veterans' own mortgage payments, not the state budget.

Riverside County is home to 109,216 veterans, plus active-duty and reserve families around March Air Reserve Base. With the county's median asking price at $625,000 and down 2.3% from a year ago, and with mortgage rates falling four weeks in a row, this is a good moment to walk through exactly how a VA or CalVet purchase works here, step by step, with real numbers.

What's in the news

• Prop 1 passed. Unofficial statewide returns show Yes at 61.0% (7,527,509 votes) and No at 39.0% (4,805,521) as of November 13. Riverside County voters also backed it. Of the $11.25 billion, $1.25 billion is set aside for veterans' home loans through CalVet, and $1.1 billion statewide goes to homeownership and down payment assistance.
• Governor's Veterans Day report (Nov 11). The state says the CalVet Home Loan program has helped nearly 450,000 veterans buy homes, and that Prop 1 funding keeps the program's lending capacity going for future buyers.
• Local veteran housing. Riverside County Housing and Workforce Solutions is moving ahead with San Jacinto Valley Cottages in Valle Vista: 24 private units in four cottage-style homes for adults 55 and older, with priority for veterans and seniors who are homeless or at risk of homelessness.
• Rates are easing. The national average 30-year rate fell to 7.11% on November 12, the lowest in seven weeks, down from 7.18% the week before (a year ago it was 6.24%).

Riverside County snapshot, October 2026

Source: public housing-market data, county core metrics, October 2026. The price-cut share is the published share of listings with a price cut.

Other context: Riverside County's median household income is $93,074, about $7,756 a month. The 2026 conforming loan limit for a one-unit home in Riverside County is $832,750.

What this means for a VA buyer: more homes on the market, fewer buyers in contract, and homes sitting a median of 58 days. That gives you time to inspect, negotiate, and ask for closing-cost help, which matters a lot on a VA loan.

VA loan or CalVet loan: what is the difference?

A VA-backed loan is made by a private lender (bank, credit union, or mortgage company) and guaranteed in part by the U.S. Department of Veterans Affairs. In most cases there is no down payment and no monthly mortgage insurance. You pay a one-time funding fee unless you are exempt.

A CalVet Home Loan is made by the State of California's Department of Veterans Affairs and funded by bonds. CalVet often uses the federal VA guarantee to offer up to 100% financing with no monthly private mortgage insurance. CalVet sets its own interest rates based on the bond fund that finances the loan. To be eligible, the state says you must have served at least 90 days of active duty (not counting training), have a discharge under honorable conditions, and not have a current CalVet loan. The home must be your own residence in California.

How to choose: get a written quote from CalVet and from at least two private VA lenders in the same week. Compare the interest rate, the points, total cash to close, and the monthly payment. Ask CalVet which bond fund you would qualify for, since that drives the rate, and ask what insurance coverage the program includes or requires.

Step 1: Get your Certificate of Eligibility (COE)

Your COE proves to a lender that you have VA home loan benefits and shows how much entitlement you have.

How to do it:

1. Request your COE online through VA.gov, or ask your lender to pull it for you (most can in minutes).
2. Have your DD-214 ready if you are a veteran, or a statement of service from your commander if you are on active duty. Reserve and Guard members may need points statements or retirement records.
3. Read the COE closely. Look at the basic entitlement line and the "Prior loans charged to entitlement" table.

Step 2: Know whether you have a loan limit

Full entitlement means no VA loan limit. If your COE shows basic entitlement of $36,000 and no loans currently charged against it, VA does not cap your loan size. Your lender still decides what you can afford, and the loan can't exceed the lower of the appraised value or the purchase price.

Partial entitlement means the county limit matters. If you still have a VA loan on another home, your remaining entitlement is figured from Riverside County's one-unit limit of $832,750.

How to run it (example):

The $50,000 of entitlement already used is hypothetical, to show the method.

1. County limit times 25%: $832,750 x 0.25 = $208,187.50
2. Subtract entitlement already used: $208,187.50 - $50,000 = $158,187.50 remaining
3. Multiply by 4: $158,187.50 x 4 = $632,750

That's about the most most lenders would lend this buyer with no down payment. It happens to sit just above the county's $625,000 median asking price. To go higher, the buyer would usually put down 25% of the amount above $632,750.

Step 3: Figure the VA funding fee, or confirm you are exempt

VA's purchase-loan funding fees (in effect since April 7, 2023):

You don't pay the fee if you receive VA compensation for a service-connected disability (or are eligible but get retirement or active-duty pay instead), receive Dependency and Indemnity Compensation as a surviving spouse, have a proposed or memorandum rating before closing based on a pre-discharge claim, or are on active duty and show a Purple Heart on or before closing. If you are later awarded compensation retroactive to before your closing date, you may get a refund.

The fee can be paid at closing or added to the loan. On a VA purchase loan it is the only cost you can finance; everything else must be paid at closing by you, the seller, or a lender credit.

Step 4: Run the monthly numbers on Riverside's median home

Illustration using the $625,000 October median asking price, the 7.11% national average 30-year rate (a conventional-loan benchmark; your VA or CalVet rate will differ), a first-use buyer, and a 30-year term:

Add property tax and insurance. Using a hypothetical 1.1% property tax rate (about $573 a month) and a hypothetical $1,800-a-year insurance premium ($150 a month), the 0%-down payment comes to about $5,018 a month. Check the real tax rate on the specific property's tax bill, including any Mello-Roos or special assessments, which are common in newer Riverside County neighborhoods.

How to do it for your own home:

1. Take the price, subtract your down payment, and multiply by (1 + your funding fee) to get the loan amount. Skip the fee if you're exempt.
2. Put the loan amount, your quoted rate, and 360 months into any mortgage calculator.
3. Add the real property tax (from the county's tax bill lookup), an actual insurance quote, and any HOA dues.
4. If you're exempt from the fee, rerun the numbers. On a $625,000 home with 0% down, that's $13,437 less debt.

Step 5: Pass the two VA qualifying tests

VA underwriting uses two tests, set out in federal VA underwriting regulations.

Debt-to-income (DTI): total housing payment plus long-term debts, divided by gross monthly income. The standard is 41% or less. Going over 41% isn't an automatic no. If residual income beats VA's guideline by at least 20%, the extra supervisor review isn't required.

Residual income: what's left each month after taxes, housing payment, maintenance and utilities, and debts. California is in VA's West region. For loans of $80,000 and up:

For families larger than five, add $80 per extra member, up to seven. Everyone in the household counts. VA's lender handbook has underwriters estimate maintenance and utilities at 14 cents per square foot. On Riverside's median 1,922-square-foot home, that's about $269 a month.

Worked example (hypothetical household of four):

The income, taxes, and debts below are hypothetical, to show the method.

• Housing payment from Step 4: $5,018
• Car loan and other debts: $400
• Gross income: $13,000 a month ($156,000 a year)
• DTI: ($5,018 + $400) / $13,000 = about 41.7%, slightly over 41%
• Residual income: $13,000 - $3,000 income and payroll taxes - $5,018 housing - $269 maintenance and utilities - $400 debts = about $4,313
• VA minimum for four is $1,117, and 120% of that is about $1,340. This household clears it easily, so the slightly high DTI shouldn't need the extra justification.

At exactly 41% DTI, this payment and $400 in debts would take about $13,214 a month of gross income, or about $158,568 a year. That's well above the county median household income of $93,074. That's why many Riverside County VA buyers combine two incomes, buy below the median, or look at condos, townhomes, or areas with lower prices per square foot.

How to do it:

1. Add up gross monthly income for every borrower. Ask the lender which allowances (such as BAH) and benefits (such as VA disability compensation) it will count, and what documents it needs.
2. List every monthly debt on your credit report, plus child support and child care.
3. Run DTI at your target price. If you're over 41%, check residual income against the table.
4. VA doesn't set a minimum credit score, but most lenders do. Ask at least three lenders for their minimum.

Step 6: Negotiate with VA's rules in mind

VA doesn't limit what a seller pays toward your normal closing costs. It does cap seller concessions at 4% of the home's reasonable value. Concessions include the seller paying your funding fee, paying off your debts, or prepaying your insurance. On a $625,000 home, 4% is $25,000.

How to negotiate:

1. Look at price history. With 16.9% of Riverside County listings showing a price cut in October and a median of 58 days on market, long-listed and reduced homes are the best places to ask.
2. Ask for closing costs and a rate buydown, not just a lower price. Illustration: on the $638,438 0%-down loan, a rate half a point lower (6.61% instead of 7.11%) cuts principal and interest from about $4,295 to about $4,082, roughly $213 a month. Have your lender quote what that buydown would cost.
3. Remember that only the funding fee can be financed. Use seller credits to cover title, escrow, appraisal, and prepaid items so your cash to close stays low.
4. Keep the rest of your offer strong: full preapproval, a realistic escrow period, and a note that VA appraisals are routine.

Step 7: Prepare for the VA appraisal

VA orders the appraisal and issues a Notice of Value. Your loan can't exceed the lower of that value or the price.

How to do it:

1. Before you write the offer, have your agent pull recent comparable sales so your price holds up.
2. Expect the appraiser to check basic safety and soundness, such as the roof, water heater, and peeling paint on older homes. Ask the seller about known issues up front.
3. If the value comes in low, you can renegotiate, pay the gap in cash, or ask for a reconsideration with better comparable sales.
4. Still get your own home inspection. The appraisal is not an inspection.

Step 8: If you're 100% disabled, claim California's Disabled Veterans' Exemption

For the 2026 lien date, the California State Board of Equalization set the exemption at up to $180,671 of assessed value (basic) or up to $271,009 (low-income, for household income of $81,131 or less). At the 1% base tax rate, that's roughly $1,807 and $2,710 a year off the bill, before local add-ons. It's for veterans rated 100% disabled (or paid at 100% for unemployability) from a service-connected condition, blind in both eyes, or who lost the use of two or more limbs, and for certain unmarried surviving spouses. It replaces the homeowners' exemption and doesn't cover special taxes or direct levies.

How to do it: after closing, file form BOE-261-G with the Riverside County Assessor. The basic exemption is filed once. The low-income version must be filed every year.

Step 9: Watch for Prop 1 and CalVet updates

Prop 1's bonds still have to be sold, and the programs funded by them roll out over time. If you're a veteran thinking about a 2027 purchase:

1. Call CalVet Home Loans (new customers: 866-653-2510) and ask about current rates, which bond fund you'd qualify for, and whether it offers down payment help.
2. Ask your lender whether any state or county down payment assistance can be combined with a VA loan.
3. Check Riverside County Veterans' Services for local benefits help and its Veterans Advisory Committee meetings.

Your VA buyer checklist

• COE in hand, entitlement checked
• Funding fee figured, or exemption confirmed in writing
• Quotes from CalVet and at least two VA lenders, compared the same week
• DTI and residual income run at your target price
• Real property tax (including Mello-Roos) and an insurance quote for each home you're serious about
• Offer that asks for closing costs or a buydown, within VA's 4% concession cap
• Your own home inspection, plus a plan if the appraisal comes in low
• BOE-261-G filed after closing, if you qualify

What this means day to day

For a Riverside County veteran, the math comes down to this: no down payment and no monthly mortgage insurance, but a payment that still takes a solid household income at today's rates. The market is giving buyers more room than it has in a while. There are more listings, fewer buyers in contract, and price cuts on about one listing in six. Use that room to get the seller to cover your closing costs, and shop CalVet against private VA lenders before you lock.

If you're a veteran, service member, or surviving spouse looking in Riverside County, Choice of America can help you compare loans, find homes that fit VA's appraisal rules, and negotiate the credits you're entitled to. Call or text 833-THIS-BROKER (833-842-7465), or visit choiceofamerica.com and our Riverside County real estate page.

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This article is general information, not legal, tax, or lending advice. Payment figures are illustrations based on the stated assumptions; your rate, taxes, insurance, and terms will differ. Confirm eligibility and costs with VA, CalVet, and your lender.

Sources: public housing-market data, official veteran population and income figures, national mortgage-rate surveys, official loan-limit and funding-fee tables, VA underwriting rules, state ballot results, and published local news coverage, as of November 2026.