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100% Financing Options For CalPERS Members


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A copy of the presentation updated and uploaded March 26,2009

A copy of the presentation updated and uploaded March 26,2009

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  • 1. 100% Financing Options for CalPERS Members
    • Sponsored by
    • Broadview Mortgage Corporation
    • 1-866-667-6724
  • 2. CalPERS Home Loan Options
    • Purpose and Goals of this Class
    • To Create and Empower Home Owners
    • Educate you about the Specialty Financing Options for members of the California Public Employee’s Retirement System
    • Empower you with the ability to make informed decisions in the home buying process
    • Introduce you to Broadview Mortgage Corporation as your CalPERS Experts
  • 3. CalPERS Home Loan Options
    • Ask Questions during presentation
    • You may type questions in at any time during the presentation – Questions box on your screen
    • Homeownership experts are standing by to answer your questions during the presentation
    • This is an interactive learning environment. You will get the most value by having your specific questions answered
    • The only dumb question is the one you don’t ask
    • Write number down now in case you get disconnected
      • 1-866-667-6724
  • 4. CalPERS Home Loan Options
    • Topics We Will Cover In This Class
    • Eligibility Guidelines for CalPERS Loans
    • Available CalPERS Home Loan Options
    • CalPERS Personal Loan Guidelines
      • 100% Financing Option
    • Federal and State tax credit overview
    • What’s the next step?
    • Wrap Up and Take Aways – Upcoming Classes
  • 5. CalPERS Home Loan Options
    • How CalPERS benefits from Program
    • CalPERS pension fund invests in mortgage notes as mortgage backed securities
      • CalPERS is not a lender
    • Payments go back into CalPERS, pension fund
    • CalPERS Home Loans are an investment vehicle for the CalPERS retirement fund
    • Contributes to the growth and stability of your retirement system as a member of CalPERS
  • 6. CalPERS Home Loan Options
    • Who is Eligible
    • Active or inactive Member of the California Public Employees’ Retirement System – “CalPERS”
    • Active or inactive Member of the Legislators’ Retirement System – “LRS”
    • Active or inactive Member of the Judges’ Retirement System – “JRS”
    • Retired and Annuitant Members are also Eligible
  • 7. CalPERS Home Loan Options
    • Property Qualifications
    • Eligible Properties
      • Single Family Residence – Detached
      • 2-4 Unit Properties – Attached – *Conforming Only
        • Up to $417,000 loan amount
      • Condominiums / Townhomes – Attached
    • Must intend on occupying property as primary residence – No investment or second homes
    • Home can be located in any State
        • You must move into home within 45 days of note date – documents drawn
  • 8. CalPERS Home Loan Options
    • Available Loan Options
    • CalPERS Home Loan Programs can be used for
      • Rate and Term Refinance
      • Cash Out Refinance
      • Purchase of a new home
    • Rate and Term and Cash out refinance options are not advantageous in the current state of the credit markets as of today’s date
    • We will only be addressing Purchase Money Loan options in this class
  • 9. CalPERS Home Loan Options
    • Available Loan Options
    • If you do your research you will find offered…
      • Conventional Conforming Loan Options - Fannie Mae & Freddie Mac – Non Government
        • 30 & 15 Year Fixed
        • 30 Fixed - 10 Year Interest only
        • 3/1 ARM
        • 5/1 ARM
        • 7/1 ARM - 7/1 ARM Interest only
        • 10/1 ARM - 10/1 ARM Interest only
    • Conventional Non-Conforming Loan Options
      • 30 & 15 Year Fixed rate only
      • Loan amounts up to 4 times conforming
  • 10. CalPERS Home Loan Options
    • Available Loan Options
    • Although CalPERS Guidelines still show these programs as available - Markets have changed
    • Underwriting guidelines have eliminated ARM and Interest Only programs over 80% loan to value
    • Private Mortgage Insurance is required for any 1 st loan amount above 80% loan to value
    • PMI companies underwriting guidelines are significantly more strict and take precedence
      • Minimum 720 Fico Score Required
      • Maximum 45% DTI
      • Maximum LTV 90%
  • 11. CalPERS Home Loan Options
    • FHA Fixed Rate – Low to No Down
    • FHA Loans are Government insured - MIP
      • Up to 96.5% Loan to Value
        • 3.5% minimum down payment
    • Can be used in conjunction with a CalPERS personal loan to pay down payment
      • Must meet requirements for personal loan
    • Credit and Qualifying guidelines are much more flexible than conventional
    • Can use non-occupying co-mortgagers to qualify
  • 12. CalPERS Home Loan Options
    • FHA Purchase Loan Basics
    • 2009 FHA Loan Limits
      • Based on MSA – from up to $729,250*
      • “ FHA Jumbo” is anything above $417,000
        • Results in slightly higher interest rates
    • Owner occupied only - 1-4 units ok
    • Loan limits increased for 2,3,4 units
      • Limits determined by MSA – Call for details
  • 13. CalPERS Home Loan Options
    • FHA Purchase Loan Basics
    • FHA Loans require 2 types of Mortgage Insurance Premiums - MIP
    • Upfront Mortgage Insurance Premium
      • 1.75% of Loan Amount
      • Can be financed into loan amount
    • Monthly Mortgage Insurance Premium
      • .55% of Loan Amount
      • Included in monthly payment
      • Included on mortgage statement
  • 14. CalPERS Home Loan Options
    • FHA Purchase Loan Basics
    • Up to 6% seller concessions allowed on FHA loans with minimum down payment of 3.5%
      • 6% concessions allowed on conventional loans with minimum 10% down payment
      • Seller concessions can be used toward closing costs only, not down payment
    • Full income documentation required
      • 2 years employment history
      • W2’s or Tax Returns
      • Current pay stubs
    • No reserves required for 1-2 unit properties
  • 15. CalPERS Home Loan Options
    • Down Payment Assistance Program
    • CalPERS Personal Loan Guidelines
    • Personal Loan is available to take out for the purposes of contributing to the down payment required to purchase a home
    • CalPERS Personal Loan is secured by Member’s retirement account with a pledge agreement.
    • Funds are not withdrawn from the Member’s account, but used as collateral for the CalPERS Personal Loan
    • Loan is treated as a liability and payment included in debt to income ratio
    • No lien is placed against the property
  • 16. CalPERS Home Loan Options
    • Down Payment Assistance Program
    • CalPERS Personal Loan Guidelines
    • Eligible Borrowers
      • Active or inactive members of CalPERS, LRS and JRS
      • Retired and annuitants members, and Tier Two Member whose contributions are service credits are not eligible for the Personal Loan
    • Eligible uses for Personal Loan
      • Can be used in conjunction with a CalPERS Mortgage Loan for the purposes of down payment assistance only
  • 17. CalPERS Home Loan Options
    • Down Payment Assistance Program
    • CalPERS Personal Loan Guidelines
    • Eligible Properties
      • Single family residence - Detached
      • Condominiums - Attached
      • Planned Urban Development - PUD
    • Must be occupied as principle residence
    • No multi family properties - 2 to 4 units not eligible
  • 18. CalPERS Home Loan Options
    • Down Payment Assistance Program
    • CalPERS Personal Loan Guidelines
    • Loan Type
      • Personal loan is fixed rate, fully amortized
    • Loan Term
      • Loan term is determined by loan amount
        • $1,000 - $1,499 3 Years
        • $1,500 - $2,999 4 Years
        • $3,000 - $4,999 5 Years
        • $5,000 - $9,999 10 Years
        • -$10,000 - $18,421 15 Years
    • Minimum loan is $1,000 – Minimum term is 1 year
  • 19. CalPERS Home Loan Options
    • Down Payment Assistance Program
    • CalPERS Personal Loan Guidelines
    • Maximum Loan Amount
      • Up to 5% of the value of the home or
      • Up to 50% of each Member’s current contribution to retirement account
      • Maximum Personal Loan amount is $18,421
    • Members may obtain their current contribution amount, available for use on a CalPERS Personal Loan by contacting CalPERS at 888-225-7377
    • First loan amount can not exceed $350,000
  • 20. CalPERS Home Loan Options
    • Interest Rate Float Down Policy
    • There are two opportunities to float down your “locked” interest rate during purchase process
      • If interest rates drop – You automatically get the lower rate
    • Opportunity #1: At time of approval
    • Opportunity #2: At time of drawing loan docs
      • Interest rate MUST be locked for 60 or 90 days
    • Personal Loan is eligible for float down
  • 21. CalPERS Home Loan Options
    • CalPERS Home Loan Review
    • Conventional conforming and non-conforming loans require minimum 10% down payment
      • Can use Personal Loan up to 5% if eligible
    • Can purchase 1-4 unit properties if primary
      • 1-2 unit properties if non-conforming loan amount
    • Two free float down opportunities
    • FHA fixed rate first mortgage with Personal Loan provides no down payment option
    • If you work in a Public School or Community College May be eligible for CalSTRS 80/17
      • 3% down payment required – No MIP
  • 22. CalPERS Home Loan Options
    • “ Red Flag” - FHA Approved lenders
    • Many illegal “Branch” companies that are not approved to originate FHA loans
    • Check official HUD website for approval status of lender - will provide link on site
    • “ Red Flags” include – a different company name and/or address on page 3 of loan application.
  • 23. Homebuyer Tax Credit News
    • Federal Tax Credit - $8,000
      • Not paid back if live in home for 3 years
      • Must be first time homebuyer
      • Income limits
      • Expires on November 30 th , 2009
    • State of California Tax Credit - $10,000
      • Must buy “new construction” home
      • Purchase after 3/1/09 and before 3/1/10
      • Do not have to be first time homebuyer
      • No income limits
    • Complete qualifying details on YouTube video – You will get link shortly
  • 24. What’s the Next Step?
    • Very First Step – Get pre-approved for financing
    • Get pre-approved for the maximum you can qualify for – Be prepared for competition
    • Work with a buyer’s agent – Fiduciary duties require that your best interests are represented
    • Work with a Real Estate Agent that is familiar with these special home purchase programs
  • 25. CalPERS Home Loan Options
    • Wrap up and Take Aways
      • We are a direct Lender that specializes in CalSTRS, CalPERS, CalHFA, FHA, VA, USDA and Community based down payment assistance programs
      • We are more than happy to be your “second opinion” if you are already working with someone
      • We are more than happy to refer you to a qualified Real Estate Agent that shares our values and passion for education
  • 26. CalPERS Home Loan Options
    • Wrap up and Take Aways
    • You will receive a “Thank you” email with links to the information we’ve talked about here today including
      • Copy of power point presentation
      • Secure on-line loan application
      • Links to all the topics we discussed in class
      • Dream Home Finder request
      • Link to more information about Tax Credit
      • A schedule of all upcoming classes
  • 27. Upcoming Homebuyer Classes
    • Hiring a Real Estate Agent and Finding the Best Deals
    • A Complete Guide to Closing Costs and the Good Faith Estimate
    • A Complete Guide to Buying Foreclosures and Short Sales
    • A Complete Guide to FHA Purchase Loans
    • A Complete Guide to the CalPERS Home Loan Program
    • Five 100% Financing Loans You Should Know About
    • Working to record and archive all classes for viewing anytime – I will keep you updated
    • Check back often for upcoming classes
  • 28. Thank You for Attending If you enjoyed this class – Tell a friend 
    • For more information
    • 1-866-667-6724
    • Sponsored by
    • Broadview Mortgage Corporation
    • Homeownership Educator
    • Scott Schang