100% Financing Options for CalPERS Members Thank you for attending We will begin in a moment Class Scheduled to begin at 5:30pm Homeownership Educator Scott Schang Sponsored by Broadview Mortgage Corporation 1-866-667-6724

Thank you for attending

We will begin in a moment

Class Scheduled to begin at 5:30pm

Homeownership Educator

Scott Schang

Sponsored by

Broadview Mortgage Corporation

1-866-667-6724

CalPERS Home Loan Options The Purpose and Goals of this Class Purpose: To Create and Empower Home Owners Goal: Educate you about the Specialty Home Financing Benefits available to CalPERS Members Goal: Provide homebuyers with the tools and resources necessary to understand all of the options available to you Goal: Empower you with the ability to make informed decisions in the home buying process

The Purpose and Goals of this Class

Purpose: To Create and Empower Home Owners

Goal: Educate you about the Specialty Home Financing Benefits available to CalPERS Members

Goal: Provide homebuyers with the tools and resources necessary to understand all of the options available to you

Goal: Empower you with the ability to make informed decisions in the home buying process

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 What’s the next step? Wrap Up and Take Aways – Upcoming Classes

Topics We Will Cover In This Class

Eligibility Guidelines for CalPERS Loans

Available CalPERS Home Loan Options

CalPERS Personal Loan Guidelines

100% Financing Option

What’s the next step?

Wrap Up and Take Aways – Upcoming Classes

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

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

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

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

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

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

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

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

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 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

We will only be addressing Purchase Money Loan options in this class

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

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

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%

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%

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

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

CalPERS Home Loan Options FHA Purchase Loan Basics 2009 FHA Loan Limits Based on MSA – from up to $729,750* “ 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 $729,750*

“ 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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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 Real Estate Agent that is familiar with these special home purchase programs Take your time and continue to educate yourself about the process There is no urgency to buy TODAY – It’s a good market for buyers and will be so for some time

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 Real Estate Agent that is familiar with these special home purchase programs

Take your time and continue to educate yourself about the process

There is no urgency to buy TODAY – It’s a good market for buyers and will be so for some time

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

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

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 Link to more information about the Mortgage Protection Program A schedule of all upcoming classes

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

Link to more information about the Mortgage Protection Program

A schedule of all upcoming classes

Upcoming Homebuyer Classes After the Offer – 30 days until Homeownership – A complete guide to what happens after your offer is accepted 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

After the Offer – 30 days until Homeownership –

A complete guide to what happens after your offer is accepted

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

Thank You for Attending If you enjoyed this class – Tell a friend  Your input is Valuable Please complete 2 question survey when you log off For more information 1-866-667-6724 Sponsored by Broadview Mortgage Corporation Homeownership Educator Scott Schang

Your input is Valuable

Please complete 2 question survey when you log off

For more information

1-866-667-6724

Sponsored by

Broadview Mortgage Corporation

Homeownership Educator

Scott Schang