A Complete Guide to CalPERS Home Purchase Loans Thank You for Attending We Will Begin in a Moment Class will begin at 7:00pm Presented By: Broadview Mortgage Corporation Presenter: Scott Schang Contact Information: Phone: 866-667-6724 [email_address]

A Complete Guide to CalPERS Home Purchase Loans The Purpose and Goals of this Class To Create and Empower Home Owners Educate you about Exclusive financing options for members of California Public Employees Retirement System - CalPERS Empower you with the ability to make educated decisions in the home buying process Introduce you to Broadview Mortgage Corporation as your CalPERS expert

The Purpose and Goals of this Class

To Create and Empower Home Owners

Educate you about Exclusive financing options for members of California Public Employees Retirement System - CalPERS

Empower you with the ability to make educated decisions in the home buying process

Introduce you to Broadview Mortgage Corporation as your CalPERS expert

A Complete Guide to CalPERS Home Purchase Loans Topics We Will Cover In This Class Eligibility Guidelines for CalPERS Loans Available CalPERS Home Loan Options CalPERS Personal Loan Guidelines 100% Financing Option $7,500 Federal Tax Credit Wrap Up and Take Aways

Topics We Will Cover In This Class

Eligibility Guidelines for CalPERS Loans

Available CalPERS Home Loan Options

CalPERS Personal Loan Guidelines

100% Financing Option

$7,500 Federal Tax Credit

Wrap Up and Take Aways

A Complete Guide to CalPERS Home Purchase Loans Topics We Will Cover In This Class Ask Questions throughout presentation You may type questions in at any time during the presentation – Questions box on your screen CalPERS loan specialists are standing by to answer your questions during the presentation The only dumb question is the one you don’t ask Write number down now in case you get disconnected 1-866-667-6724

Topics We Will Cover In This Class

Ask Questions throughout presentation

You may type questions in at any time during the presentation – Questions box on your screen

CalPERS loan specialists are standing by to answer your questions during the presentation

The only dumb question is the one you don’t ask

Write number down now in case you get disconnected

1-866-667-6724

A Complete Guide to CalPERS Home Purchase Loans 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

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

A Complete Guide to CalPERS Home Purchase Loans 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

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

A Complete Guide to CalPERS Home Purchase Loans Who is Eligible You must intend to occupy the property as your primary residence May only have one outstanding CalPERS Mortgage Loan at any given time If co-borrower on another CalPERS loan it must be paid in full There are no income limitations

Who is Eligible

You must intend to occupy the property as your primary residence

May only have one outstanding CalPERS Mortgage Loan at any given time

If co-borrower on another CalPERS loan it must be paid in full

There are no income limitations

A Complete Guide to CalPERS Home Purchase Loans 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

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

A Complete Guide to CalPERS Home Purchase Loans 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

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

A Complete Guide to CalPERS Home Purchase Loans 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

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

A Complete Guide to CalPERS Home Purchase Loans 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%

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%

A Complete Guide to CalPERS Home Purchase Loans Available Loan Options Conventional Loan Program Review Maximum 90% first mortgage Minimum 5% down payment 5% CalPERS Personal Loan Minimum 720 Credit Score Maximum 45% Debt to Income Low and No Down Payment Option Available

Available Loan Options

Conventional Loan Program Review

Maximum 90% first mortgage

Minimum 5% down payment

5% CalPERS Personal Loan

Minimum 720 Credit Score

Maximum 45% Debt to Income

Low and No Down Payment Option Available

A Complete Guide to CalPERS Home Purchase Loans 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

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

A Complete Guide to CalPERS Home Purchase Loans FHA Purchase Loan Basics 2009 FHA Loan Limits Based on MSA – from up to $625,500 “ 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

FHA Purchase Loan Basics

2009 FHA Loan Limits

Based on MSA – from up to $625,500

“ 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

A Complete Guide to CalPERS Home Purchase Loans 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

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

A Complete Guide to CalPERS Home Purchase Loans 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 assets required for 1-2 unit properties

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 assets required for 1-2 unit properties

A Complete Guide to CalPERS Home Purchase Loans 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

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

A Complete Guide to CalPERS Home Purchase Loans 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

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

A Complete Guide to CalPERS Home Purchase Loans 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

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

A Complete Guide to CalPERS Home Purchase Loans 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

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

A Complete Guide to CalPERS Home Purchase Loans 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

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

A Complete Guide to CalPERS Home Purchase Loans 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

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

A Complete Guide to CalPERS Home Purchase Loans 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

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

A Complete Guide to CalPERS Home Purchase Loans “ 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.

“ 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.

$7,500 Federal Tax Credit No-interest loan paid back over 15 years Begin paying back 2 years after credit Must purchase on or before July 1 st , 2009 Between April 8th, 2008 and July 1 st , 2009 Must be first time home buyer Can not have owned in past 3 years 10% of purchase price up $7,500 $7,500 - Married filing joint or Single taxpayer Married filing separate $3,750

No-interest loan paid back over 15 years

Begin paying back 2 years after credit

Must purchase on or before July 1 st , 2009

Between April 8th, 2008 and July 1 st , 2009

Must be first time home buyer

Can not have owned in past 3 years

10% of purchase price up $7,500

$7,500 - Married filing joint or Single taxpayer

Married filing separate $3,750

$7,500 Federal Tax Credit Home bought in 2008 can be claimed on 2008 returns Home bought in 2009 can be claimed on 2008 (or amended 2008) return Income limit is $150,000 for married couple Phase out maximum is $170,000 Income limit is $75,000 for single taxpayer Phase out maximum is $95,000 Loan is paid back in 15 equal installments Added to your tax liability if you owe Deducted from your refund if over paid

Home bought in 2008 can be claimed on 2008 returns

Home bought in 2009 can be claimed on 2008 (or amended 2008) return

Income limit is $150,000 for married couple

Phase out maximum is $170,000

Income limit is $75,000 for single taxpayer

Phase out maximum is $95,000

Loan is paid back in 15 equal installments

Added to your tax liability if you owe

Deducted from your refund if over paid

$7,500 Federal Tax Credit You would be ineligible for Tax Credit if: Your income exceed the phase-out range You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild You stop using your home as your main home You sell your home before the end of the year You are a nonresident alien Your home financing comes from tax-exempt mortgage revenue bonds - CalHFA You owned another main at any time during the three years prior to the date of purchase

You would be ineligible for Tax Credit if:

Your income exceed the phase-out range

You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild

You stop using your home as your main home

You sell your home before the end of the year

You are a nonresident alien

Your home financing comes from tax-exempt mortgage revenue bonds - CalHFA

You owned another main at any time during the three years prior to the date of purchase

Wrap up and Take Aways We are the Lender for all CalPERS, CalSTRS, CalHFA, FHA & VA, Conventional and Jumbo Loans We can Refer you to a qualified Real Estate Agent in your area We are more than happy to be your “second opinion” if you are already working with someone We are committed to educating and empowering homeowners - Join us for future classes

We are the Lender for all CalPERS, CalSTRS, CalHFA, FHA & VA, Conventional and Jumbo Loans

We can Refer you to a qualified Real Estate Agent in your area

We are more than happy to be your “second opinion” if you are already working with someone

We are committed to educating and empowering homeowners - Join us for future classes

Wrap up and Take Aways You will receive a “Thank you” email with links to the information we’ve talked about here today Copy of power point presentation Link to search HUD approved lenders Link to search MSA Loan Limits Dream Home Finder request Secure on-line FHA loan application Links to tools and resources we talk about in all of our classes A schedule of all upcoming classes

You will receive a “Thank you” email with links to the information we’ve talked about here today

Copy of power point presentation

Link to search HUD approved lenders

Link to search MSA Loan Limits

Dream Home Finder request

Secure on-line FHA loan application

Links to tools and resources we talk about in all of our classes

A schedule of all upcoming classes

Upcoming Home Buyer Classes A Complete Guide to Buying Foreclosures and Short Sales A Complete Guide to Closing Costs and the Good Faith Estimate A Complete Guide to the CalSTRS 80/17 Home Purchase Program A First Time Home buyer’s Complete Guide to Credit and Qualifying A First Time Home Buyer’s Complete Guide to Hiring a Real Estate Agent and Finding the Best Deals A Complete guide to FHA Purchase Loan Options Check back often for upcoming classes

A Complete Guide to Buying Foreclosures and Short Sales

A Complete Guide to Closing Costs and the Good Faith Estimate

A Complete Guide to the CalSTRS 80/17 Home Purchase Program

A First Time Home buyer’s Complete Guide to Credit and Qualifying

A First Time Home Buyer’s Complete Guide to Hiring a Real Estate Agent and Finding the Best Deals

A Complete guide to FHA Purchase Loan Options

Check back often for upcoming classes

Thank you for Attending You input is Valuable Please complete 2 question survey when you log off Presented By: Broadview Mortgage Corp. Presenter: Scott Schang Contact Information: Phone: 866-667-6724 [email_address]