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100% Financing Options for CalPERS members - Updated 1/19/09
 

100% Financing Options for CalPERS members - Updated 1/19/09

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CalPERS offers one of the only 100% financing options available by allowing participation annuitants to take out a personal loan secured by their retirement account....

CalPERS offers one of the only 100% financing options available by allowing participation annuitants to take out a personal loan secured by their retirement account.

This loan program utilizes an FHA first mortgage in conjunction with a personal loan second to achieve 100% financing.

We also review the newly released guidelines for the $7,500 federal tax credit released by the IRS earlier this month.

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    100% Financing Options for CalPERS members - Updated 1/19/09 100% Financing Options for CalPERS members - Updated 1/19/09 Presentation Transcript

    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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%
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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.
    • $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
    • $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
    • $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
    • 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
    • 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
    • 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
    • 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]