Which financing option prevents a person from securing a second trust deed using their home as collateral?

The correct answer is Cal-Vet Financing. This type of financing is specifically designed to help military veterans and their families secure home loans, particularly in California. One of the distinguishing features of Cal-Vet Financing is that it restricts the borrower from taking out a second trust deed on the property, which means that the home cannot be used as collateral for additional borrowing while it is under this type of financing. This provision is in place to protect the integrity of the initial loan and ensure that the veteran does not over-leverage their property.

Other financing options, such as conventional, FHA, and VA financing, generally allow homeowners the flexibility to secure additional loans using their home as collateral, as long as they meet the necessary requirements set forth by the lenders. This ability to obtain multiple loans against the equity of a home can provide homeowners with various financing opportunities, which is not applicable under Cal-Vet Financing.