California Code of Regulations
Title 12 - Military and Veterans Affairs
Division 2 - Department of Veterans Affairs
Chapter 2 - Veterans' Farm and Home Purchases
Subchapter 1 - Eligibility and Qualifications
Section 310.2 - Restrictions

(a) Applications for the Department's consent to encumber or improve, or home improvement loans as described in Section 341 shall not be granted while a veteran is participating in the Program, unless the encumbrance or improvement is necessary to protect the Department's interest in the property or where the property is participating in a recognized redevelopment program.

(b) Loan term extensions shall not be granted while a veteran is participating in the Program except in cases where the veteran needs the extension to afford staying in the home. Veterans shall submit a letter to the Department requesting an extension. The Department shall review the case and the veteran's current financial status in making the decision to approve or disapprove the extension.

(c) Disability insurance payments shall be limited to the initial amount of the monthly installment under the Program. If the veteran is on disability when the deferment period expires and the Department adjusts the monthly installment to the full principal and interest payment, the additional amount must be paid by the veteran.

(d) Veterans who become married shall not be allowed to remain in the Program if the spouse is employed and the combined monthly incomes are sufficient to meet principal plus interest loan payments.

(e) Loan transfers shall not be permitted while the veteran is participating in the Program.

(f) Occupancy waivers or permission to rent shall not be granted except in those cases where the veteran is in an active military service position which requires the veteran and the veteran's family to temporarily relocate.

(g) Non-veteran spouses to whom the Cal-Vet property is awarded in dissolution of marriage or legal separation proceedings, shall be allowed to continue in the Program so long as they meet the criteria set forth in Section 310(a)(1) and (2). However, if the spouse is not qualified for the non-veteran spouse benefit as described in Section 987.721 of the Military and Veterans Code, then the interest-only payment shall be increased to reflect the non-veteran rate of interest as set forth in Section 342(c). The interest rate shall be placed in effect as of the date the property is awarded to the non-veteran spouse.

(h) A subsequent opportunity to purchase another farm or home using Cal-Vet financing shall not be granted while the veteran is participating in the Program. A subsequent opportunity for a loan may be granted under Section 987.86 of the Military and Veterans Code if the veteran elects to withdraw from the Program or when the five-year term has expired.

(i) Canceled loan contracts shall not be reinstated by the Department unless the amount of delinquency is paid in full.