100% Financing Options with CalPERS - A Complete Guide to the CalPERS Home Loan Program

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The CalPERS Personal Loan down payment assistance program is one of the only 100% financing options available for home buyers in today's market.

This program is available to member of CalPERS, LRS & JRS in the State of California.

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  • Yes, that is correct. The 100% CalPERS option utilizes a CalPERS FHA 1st mortgage. If you are an employee of a California pubic school or community college, you may be eligible for the CalSTRS 80/17 which carries no mortgage insurance and requires only a 3% down payment.
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100% Financing Options with CalPERS - A Complete Guide to the CalPERS Home Loan Program

  1. 1. A Complete Guide to CalPERS Home Purchase Loans Thank You for Attending We Will Begin in a Moment Class will begin at 6:30pm Presented By: Broadview Mortgage Corporation Presenter: Scott Schang Contact Information: Phone: 866-667-6724 [email_address]
  2. 2. A Complete Guide to CalPERS Home Purchase Loans <ul><li>The Purpose and Goals of this Class </li></ul><ul><li>To Create and Empower Home Owners </li></ul><ul><li>Educate you about Exclusive financing options for members of California Public Employees Retirement System - CalPERS </li></ul><ul><li>Empower you with the ability to make educated decisions in the home buying process </li></ul><ul><li>Introduce you to Broadview Mortgage Corporation as your CalPERS expert </li></ul>
  3. 3. A Complete Guide to CalPERS Home Purchase Loans <ul><li>Topics We Will Cover In This Class </li></ul><ul><li>Eligibility Guidelines for CalPERS Loans </li></ul><ul><li>Available CalPERS Home Loan Options </li></ul><ul><li>CalPERS Personal Loan Guidelines </li></ul><ul><li>100% Financing Option with CalPERS </li></ul><ul><li>Things you should know about getting started </li></ul><ul><li>Wrap Up and Take Aways </li></ul>
  4. 4. A Complete Guide to CalPERS Home Purchase Loans <ul><li>Topics We Will Cover In This Class </li></ul><ul><li>Ask Questions throughout presentation </li></ul><ul><ul><li>You may type questions in at any time during the presentation – Questions box on your screen </li></ul></ul><ul><ul><li>CalPERS loan specialists are standing by to answer your questions during the presentation </li></ul></ul><ul><ul><li>The only dumb question is the one you don’t ask </li></ul></ul><ul><li>Write number down now in case you get disconnected </li></ul><ul><ul><li>1-866-667-6724 </li></ul></ul>
  5. 5. A Complete Guide to CalPERS Home Purchase Loans <ul><li>How CalPERS benefits from Program </li></ul><ul><ul><li>CalPERS pension fund invests in mortgage notes as mortgage backed securities </li></ul></ul><ul><ul><ul><li>CalPERS is not a lender </li></ul></ul></ul><ul><ul><li>Payments go back into CalPERS, pension fund </li></ul></ul><ul><ul><li>CalPERS Home Loans are an investment vehicle for the CalPERS retirement fund </li></ul></ul><ul><ul><li>Contributes to the growth and stability of your retirement system as a member of CalPERS </li></ul></ul>
  6. 6. A Complete Guide to CalPERS Home Purchase Loans <ul><li>Who is Eligible </li></ul><ul><ul><li>Active or inactive Member of the California Public Employees’ Retirement System – “CalPERS” </li></ul></ul><ul><ul><li>Active or inactive Member of the Legislators’ Retirement System – “LRS” </li></ul></ul><ul><ul><li>Active or inactive Member of the Judges’ Retirement System – “JRS” </li></ul></ul><ul><ul><li>Retired and Annuitant Members are also Eligible </li></ul></ul>
  7. 7. A Complete Guide to CalPERS Home Purchase Loans <ul><li>Who is Eligible </li></ul><ul><ul><li>You must intend to occupy the property as your primary residence </li></ul></ul><ul><ul><li>May only have one outstanding CalPERS Mortgage Loan at any given time </li></ul></ul><ul><ul><ul><li>If co-borrower on another CalPERS loan it must be paid in full </li></ul></ul></ul><ul><ul><li>There are no income limitations </li></ul></ul>
  8. 8. A Complete Guide to CalPERS Home Purchase Loans <ul><li>Property Qualifications </li></ul><ul><li>Eligible Properties </li></ul><ul><ul><li>Single Family Residence – Detached </li></ul></ul><ul><ul><li>2-4 Unit Properties – Attached – *Conforming Only </li></ul></ul><ul><ul><ul><li>Up to $417,000 loan amount </li></ul></ul></ul><ul><ul><li>Condominiums / Townhomes – Attached </li></ul></ul><ul><li>Must intend on occupying property as primary residence – No investment or second homes </li></ul><ul><li>Home can be located in any State </li></ul><ul><ul><ul><li>You must move into home within 45 days of note date – documents drawn </li></ul></ul></ul>
  9. 9. A Complete Guide to CalPERS Home Purchase Loans <ul><li>Available Loan Options </li></ul><ul><ul><li>CalPERS Home Loan Programs can be used for </li></ul></ul><ul><ul><ul><li>Rate and Term Refinance </li></ul></ul></ul><ul><ul><ul><li>Cash Out Refinance </li></ul></ul></ul><ul><ul><ul><li>Purchase of a new home </li></ul></ul></ul><ul><ul><li>Rate and Term and Cash out refinance options are not advantageous in the current state of the credit markets as of today’s date </li></ul></ul><ul><ul><li>We will only be addressing Purchase Money Loan options in this class </li></ul></ul>
  10. 10. A Complete Guide to CalPERS Home Purchase Loans <ul><li>Available Loan Options </li></ul><ul><ul><li>If you do your research you will find offered… </li></ul></ul><ul><ul><ul><li>Conventional Conforming Loan Options - Fannie Mae & Freddie Mac – Non Government </li></ul></ul></ul><ul><ul><ul><ul><li>30 & 15 Year Fixed </li></ul></ul></ul></ul><ul><ul><ul><ul><li>30 Fixed - 10 Year Interest only </li></ul></ul></ul></ul><ul><ul><ul><ul><li>3/1 ARM </li></ul></ul></ul></ul><ul><ul><ul><ul><li>5/1 ARM </li></ul></ul></ul></ul><ul><ul><ul><ul><li>7/1 ARM - 7/1 ARM Interest only </li></ul></ul></ul></ul><ul><ul><ul><ul><li>10/1 ARM - 10/1 ARM Interest only </li></ul></ul></ul></ul><ul><ul><ul><li>Conventional Non-Conforming Loan Options </li></ul></ul></ul><ul><ul><ul><ul><li>30 & 15 Year Fixed rate only </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Loan amounts up to 4 times conforming </li></ul></ul></ul></ul>
  11. 11. A Complete Guide to CalPERS Home Purchase Loans <ul><li>Available Loan Options </li></ul><ul><ul><li>Although CalPERS Guidelines still show these programs as available - Markets have changed </li></ul></ul><ul><ul><li>Underwriting guidelines have eliminated ARM and Interest Only programs over 80% loan to value </li></ul></ul><ul><ul><li>Private Mortgage Insurance is required for any 1 st loan amount above 80% loan to value </li></ul></ul><ul><ul><li>PMI companies underwriting guidelines are significantly more strict and take precedence </li></ul></ul><ul><ul><ul><li>Minimum 720 Fico Score Required </li></ul></ul></ul><ul><ul><ul><li>Maximum 45% DTI </li></ul></ul></ul><ul><ul><ul><li>Maximum LTV 90% </li></ul></ul></ul>
  12. 12. A Complete Guide to CalPERS Home Purchase Loans <ul><li>Available Loan Options </li></ul><ul><li>Conventional Loan Program Review </li></ul><ul><ul><li>Maximum 90% first mortgage </li></ul></ul><ul><ul><ul><li>Minimum 5% down payment </li></ul></ul></ul><ul><ul><ul><li>5% CalPERS Personal Loan </li></ul></ul></ul><ul><ul><li>Minimum 720 Credit Score </li></ul></ul><ul><ul><li>Maximum 45% Debt to Income </li></ul></ul><ul><li>Low and No Down Payment Option Available </li></ul>
  13. 13. A Complete Guide to CalPERS Home Purchase Loans <ul><li>FHA Fixed Rate – Low to No Down </li></ul><ul><li>FHA Loans are Government insured - MIP </li></ul><ul><ul><li>Up to 96.5% Loan to Value </li></ul></ul><ul><ul><ul><li>3.5% minimum down payment </li></ul></ul></ul><ul><ul><li>Can be used in conjunction with a CalPERS personal loan to pay down payment </li></ul></ul><ul><ul><ul><li>Must meet requirements for personal loan </li></ul></ul></ul><ul><ul><li>Credit and Qualifying guidelines are much more flexible than conventional </li></ul></ul><ul><ul><li>Can use non-occupying co-mortgagers to qualify </li></ul></ul>
  14. 14. A Complete Guide to CalPERS Home Purchase Loans <ul><li>FHA Purchase Loan Basics </li></ul><ul><li>2009 FHA Loan Limits </li></ul><ul><ul><li>Based on MSA – from up to $625,500 </li></ul></ul><ul><ul><li>“ FHA Jumbo” is anything above $417,000 </li></ul></ul><ul><ul><ul><li>Results in slightly higher interest rates </li></ul></ul></ul><ul><li>Owner occupied only - 1-4 units ok </li></ul><ul><li>Loan limits increased for 2,3,4 units </li></ul><ul><ul><li>Limits determined by MSA – Call for details </li></ul></ul>
  15. 15. A Complete Guide to CalPERS Home Purchase Loans <ul><li>FHA Purchase Loan Basics </li></ul><ul><li>FHA Loans require 2 types of Mortgage Insurance Premiums - MIP </li></ul><ul><ul><li>Upfront Mortgage Insurance Premium </li></ul></ul><ul><ul><ul><li>1.75% of Loan Amount </li></ul></ul></ul><ul><ul><ul><li>Can be financed into loan amount </li></ul></ul></ul><ul><ul><li>Monthly Mortgage Insurance Premium </li></ul></ul><ul><ul><ul><li>.55% of Loan Amount </li></ul></ul></ul><ul><ul><ul><li>Included in monthly payment </li></ul></ul></ul><ul><ul><ul><li>Included on mortgage statement </li></ul></ul></ul>
  16. 16. A Complete Guide to CalPERS Home Purchase Loans <ul><li>FHA Purchase Loan Basics </li></ul><ul><li>Up to 6% seller concessions allowed on FHA loans with minimum down payment of 3.5% </li></ul><ul><ul><li>6% concessions allowed on conventional loans with minimum 10% down payment </li></ul></ul><ul><ul><li>Seller concessions can be used toward closing costs only, not down payment </li></ul></ul><ul><li>Full income documentation required </li></ul><ul><ul><li>2 years employment history </li></ul></ul><ul><ul><li>W2’s or Tax Returns </li></ul></ul><ul><ul><li>Current pay stubs </li></ul></ul><ul><li>No assets required for 1-2 unit properties </li></ul>
  17. 17. A Complete Guide to CalPERS Home Purchase Loans <ul><li>Down Payment Assistance Program </li></ul><ul><li>CalPERS Personal Loan Guidelines </li></ul><ul><ul><li>Personal Loan is available to take out for the purposes of contributing to the down payment required to purchase a home </li></ul></ul><ul><ul><li>CalPERS Personal Loan is secured by Member’s retirement account with a pledge agreement. </li></ul></ul><ul><ul><li>Funds are not withdrawn from the Member’s account, but used as collateral for the CalPERS Personal Loan </li></ul></ul><ul><ul><li>Loan is treated as a liability and payment included in debt to income ratio </li></ul></ul><ul><ul><li>No lien is placed against the property </li></ul></ul>
  18. 18. A Complete Guide to CalPERS Home Purchase Loans <ul><li>Down Payment Assistance Program </li></ul><ul><li>CalPERS Personal Loan Guidelines </li></ul><ul><ul><li>Eligible borrowers </li></ul></ul><ul><ul><ul><li>Active or inactive members of CalPERS, LRS and JRS </li></ul></ul></ul><ul><ul><ul><li>Retired and annuitants members, and Tier Two Member whose contributions are service credits are not eligible for the Personal Loan </li></ul></ul></ul><ul><ul><li>Eligible uses for Personal Loan </li></ul></ul><ul><ul><ul><li>Can be used in conjunction with a CalPERS Mortgage Loan for the purposes of down payment assistance only </li></ul></ul></ul>
  19. 19. A Complete Guide to CalPERS Home Purchase Loans <ul><li>Down Payment Assistance Program </li></ul><ul><li>CalPERS Personal Loan Guidelines </li></ul><ul><ul><li>Eligible Properties </li></ul></ul><ul><ul><ul><li>Single family residence - Detached </li></ul></ul></ul><ul><ul><ul><li>Condominiums - Attached </li></ul></ul></ul><ul><ul><ul><li>Planned Urban Development - PUD </li></ul></ul></ul><ul><ul><li>Must be occupied as principle residence </li></ul></ul><ul><ul><li>No multi family properties - 2 to 4 units not eligible </li></ul></ul>
  20. 20. A Complete Guide to CalPERS Home Purchase Loans <ul><li>Down Payment Assistance Program </li></ul><ul><li>CalPERS Personal Loan Guidelines </li></ul><ul><ul><li>Loan Type </li></ul></ul><ul><ul><ul><li>Personal loan is fixed rate, fully amortized </li></ul></ul></ul><ul><ul><li>Loan Term </li></ul></ul><ul><ul><ul><li>Loan term is determined by loan amount </li></ul></ul></ul><ul><ul><ul><ul><li>$1,000 - $1,499 3 Years </li></ul></ul></ul></ul><ul><ul><ul><ul><li>$1,500 - $2,999 4 Years </li></ul></ul></ul></ul><ul><ul><ul><ul><li>$3,000 - $4,999 5 Years </li></ul></ul></ul></ul><ul><ul><ul><ul><li>$5,000 - $9,999 10 Years </li></ul></ul></ul></ul><ul><ul><ul><ul><li>-$10,000 - $18,421 15 Years </li></ul></ul></ul></ul><ul><ul><li>Minimum loan is $1,000 – Minimum term is 1 year </li></ul></ul>
  21. 21. A Complete Guide to CalPERS Home Purchase Loans <ul><li>Down Payment Assistance Program </li></ul><ul><li>CalPERS Personal Loan Guidelines </li></ul><ul><ul><li>Maximum Loan Amount </li></ul></ul><ul><ul><ul><li>Up to 5% of the value of the home or </li></ul></ul></ul><ul><ul><ul><li>Up to 50% of each Member’s current contribution to retirement account </li></ul></ul></ul><ul><ul><ul><li>Maximum Personal Loan amount is $18,421 </li></ul></ul></ul><ul><ul><li>Members may obtain their current contribution amount, available for use on a CalPERS Personal Loan by contacting CalPERS at 888-225-7377 </li></ul></ul><ul><li>First loan amount can not exceed $350,000 </li></ul>
  22. 22. A Complete Guide to CalPERS Home Purchase Loans <ul><li>Interest Rate Float Down Policy </li></ul><ul><li>There are two opportunities to float down your “locked” interest rate during purchase process </li></ul><ul><ul><li>If interest rates drop – You automatically get the lower rate </li></ul></ul><ul><li>Opportunity #1: At time of approval </li></ul><ul><li>Opportunity #2: At time of drawing loan docs </li></ul><ul><ul><li>Interest rate MUST be locked for 60 or 90 days </li></ul></ul><ul><li>Personal Loan is eligible for float down </li></ul>
  23. 23. A Complete Guide to CalPERS Home Purchase Loans <ul><li>CalPERS Home Loan Review </li></ul><ul><li>Conventional conforming and non-conforming loans require minimum 10% down payment </li></ul><ul><ul><li>Can use Personal Loan up to 5% if eligible </li></ul></ul><ul><li>Can purchase 1-4 unit properties if primary </li></ul><ul><ul><li>1-2 unit properties if non-conforming loan amount </li></ul></ul><ul><li>Two free float down opportunities </li></ul><ul><li>FHA fixed rate first mortgage with Personal Loan provides no down payment option </li></ul><ul><li>If you work in a Public School or Community College – May be eligible for CalSTRS 80/17 </li></ul><ul><ul><li>3% down payment required – No MIP </li></ul></ul>
  24. 24. A Complete Guide to CalPERS Home Purchase Loans <ul><li>“ Red Flag” - FHA Approved lenders </li></ul><ul><li>Many illegal “Branch” companies that are not approved to originate FHA loans </li></ul><ul><li>Check official HUD website for approval status of lender - will provide link on site </li></ul><ul><li>“ Red Flags” include – a different company name and/or address on page 3 of loan application. </li></ul>
  25. 25. Things you should know about getting started <ul><ul><li>Very First Step – Get Approved for financing </li></ul></ul><ul><ul><li>Get pre-approved for the maximum you can qualify for – Be prepared for competition </li></ul></ul><ul><ul><li>Work with a buyer’s agent – Fiduciary duties require that your best interests are represented </li></ul></ul><ul><ul><li>Work with a Real Estate Agent that is familiar with these special home purchase programs </li></ul></ul><ul><ul><li>Work with a Lender that is already familiar with this program </li></ul></ul>
  26. 26. Wrap up and Take Aways <ul><ul><li>Many home prices have dropped more than 30% in the past 12 months – some as high as 50% </li></ul></ul><ul><ul><li>California’s Teachers and Public Employees have more purchasing power than many other buyers in the market – Take advantage of it </li></ul></ul><ul><ul><li>Opportunities like this happen once in a lifetime </li></ul></ul><ul><ul><li>Educate yourself on the process. Do not take anyone’s “word for it” – Ask lots of Questions </li></ul></ul>
  27. 27. Wrap up and Take Aways <ul><ul><li>We are the Lender for all CalSTRS, CalPERS, CalHFA, FHA & VA, Conventional and Jumbo Loans </li></ul></ul><ul><ul><li>We can Refer you to a qualified Real Estate Agent in your area </li></ul></ul><ul><ul><li>We are more than happy to be your “second opinion” if you are already working with someone </li></ul></ul><ul><ul><li>We are committed to educating and empowering homeowners - Join us for future classes </li></ul></ul>
  28. 28. Upcoming Home Buyer Classes <ul><li>A Complete Guide to Buying Foreclosures and Short Sales </li></ul><ul><li>A Complete Guide to FHA Purchase and Refinance Loan Programs </li></ul><ul><li>A First Time Home Buyer’s Complete Guide to Credit and Qualifying </li></ul><ul><li>A First Time Home buyer’s Complete Guide to Closing Costs and the Good Faith Estimate </li></ul><ul><li>Check back often for upcoming classe s </li></ul>
  29. 29. Thank you for Attending Your feedback is Valuable Please complete survey when you log off Thank you for Attending! Presented By: Broadview Mortgage Corp. Presenter: Scott Schang Contact Information: Phone: 866-667-6724 [email_address]

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