CalPERS Home Loan CalPERS Mortgage Ca PERS

Summary - CalPERS Member Home Loan Program

Benefits of a CalPERS Home Loan From Us

Conventional CalPERS Home Loan

CalPERS FHA Loans

CalPERS Home Loan Property Qualifications

More on CalPERS Loans

Refinancing a CalPERS Mortgage

CalPERS Down Payment Assistance

Other Down Payment Assistance Programs

CalPERS Home Loan Closing Costs

CalPERS Premium Pricing Option

The California Public Employees' Retirement System (CalPERS) offers a special home loan and mortgage program for CalPERS Members called the CalPERS Member Home Loan Program. All active, inactive, and retired members of CalPERS, the Legislators’ Retirement System, the Judges’ Retirement System I, and the Judges’ Retirement System II are eligible to participate in this program. Some of the options of the CalPERS Home Loan Program are listed below, along with details and additional information.

Options of a CalPERS Home Loan include special cost protections and a variety of loan choices. CalPERS Loans offer competitive interest rates for purchases and refinances which are set daily by CalPERS. CalPERS Loans can be used for both conventional and Government fixed financing loans.

* Personal Loan Program & 100% Financing Option - For conventional fixed-rate CalPERS financing, you can purchase a home with an up to a 97% loan-to-value (LTV) CalPERS Mortgage Loan and up to a Personal Loan secured by your CalPERS Retirement Account.

* CalPERS FHA Financing - With CalPERS FHA financing, you can purchase a home with up to a 97.65% LTV (Up to a 98.75% LTV for property values less than or equal to $50,000.) CalPERS Mortgage Loan in accordance with standard FHA guidelines, and secure all or a portion of the difference (up to 100% of the home value) with a CalPERS Personal Loan. Only CalPERS offers this option.

* FREE 60-Day Rate Protection - Lock in your interest rate and eliminate concerns about interest rate increases. During the 60-day rate lock, CalPERS takes the rate increase risk for you. Other loan programs charge extra for a 60-day rate lock, or you take the interest rate risk by floating until loan approval.

* Two FREE CalPERS Float Downs - Receive the lowest CalPERS interest rate on three applicable dates: date of loan lock-in (subject to certain restrictions); date of loan approval; or date the loan documents are drawn. Most other loan programs don't offer float downs or they charge extra for this benefit. Available with 60-day rate lock.

* Increased Flexibility with the 30-day Rate Lock - You may also opt for a 30-day rate lock for a lower rate than with a 60-day rate lock. Rate float downs are not available with 30 day locks.

* Controlled Closing Fees - CalPERS has set maximums on some of the fees involved with a home loan, making the CalPERS Home Loan very affordable. Most other loan programs have higher closing fees.

* Closing Cost Assistance - Premium pricing, a gift from a relative, and/or seller contributions (check for availability) may be used to pay for closing costs.

* Reduced Mortgage Insurance Rates - As a CalPERS Member, you may be eligible to receive up to 1/8% (.125%) lower mortgage insurance rate. That's a savings of approximately $260 per year for a $200,000 30-year mortgage loan (subject to certain restrictions).

* The program is available nationwide. This is a great opportunity for retirees who have moved out of California!

CalPERS offers a variety of options for purchasing or refinancing a home through this program.

Conventional loans are typically a 10- to 30-year conventional fixed-rate mortgage - up to a maximum of 97% loan to value (LTV) for the property with certain restrictions. The maximum loan value is $1,688,000, with certain restrictions. Conventional CalPERS Home Loans can be combined with the Community Home Buyer and Mortgage Credit Certificate (MCC) options to assist first-time home buyers and low-to-moderate income home buyers.

CalPERS FHA Loans Top

30-year FHA fixed-rate mortgage loans are available. You can finance up to 97.65% (98.75 percent for property values less than or equal to $50,000) in accordance with standard FHA guidelines. CalPERS FHA Loans include many features to help you qualify for a home loan. These include more liberal qualifying guidelines and higher loan-to-values, compared to conventional financing.

A CalPERS Conventional or Government Home Loan may be used for one- to four-unit owner-occupied residences, condominiums and Planned Unit Developments (PUDs). There is also a 100% financing option available for the purchase of a single-family dwelling, condominium, or PUD.*

More on CalPERS Loans Top

The CalPERS Member Home Loan Program offers conversions of construction to permanent financing as either a purchase transaction or a refinance transaction (certain restrictions apply).

If you have an existing home loan and would like to refinance it with a CalPERS Loan, you also have a choice!

Conventional - Up to 95% of the home value, if you want refinancing for an existing first mortgage (no cash back)*.

Government- Up to 97.65% of the home value (98.75 percent for property values $50,000), if you are only refinancing an existing first mortgage (no cash back). Up to 85% of the home value, if you want cash back (some restrictions apply).

CalPERS Home Loan - Down Payment Assistance Top

CalPERS Loans feature a 100% financing option to help members purchase a home even if they do not have the cash for the down payment. The 100% financing option was created to help members secure a down payment who would otherwise not be able to purchase a home. The guidelines require a CalPERS Mortgage Loan in conjunction with a CalPERS Personal Loan (some restriction may apply). For conventional financing, the 100% financing option consists of two loans: a fixed-rate first mortgage and up to a 5% CalPERS Personal Loan for the down payment.

The Personal Loan is secured by your retirement account. You will have two separate loans and two separate payments. The 100% financing option may only be used with single-family dwellings, condominiums, and Planned Unit Developments.

Features of the 100% Downpayment Program Top

Members with accumulated retirement contributions in their retirement account are eligible for 100% financing. Employer contributions cannot be used to secure a Personal Loan. You can borrow against your retirement account only if you are purchasing a home. The Personal Loan cannot be used to pay recurring or non-recurring closing costs. You will continue to earn interest on your total retirement funds. Since the Personal Loan funds are not taken from your retirement account, you don't forfeit interest accrued or your service credit, even on the portion used to secure a Personal Loan. The Personal Loan option is not available to retired members and Second Tier State of California employees.

Even if you lack sufficient funds in your CalPERS Retirement Account to make the down payment, you may be able to use asset-secured loans and 401(k)-secured loans to fund the down payment. There are restrictions, so check with your 401(k) or insurance administrator, credit union, or bank about securing this loan. These funds can also be used to pay recurring and non-recurring closing costs. Remember that the principal and interest payments on an asset- or retirement-secured loan are counted in your total debt-to-income ratio.

Other resources for downpayment assistance include gift funds, seller concessions, or government or non-profit organization down payment assistance programs. Seller concessions can be up to 6% of the sales price, regardless of LTV. Also, your CalPERS Conventional Financing can be used with a variety of Community Home Buyer's (CHBP) Programs.

CalPERS Home Loan Closing Costs Top

In addition to the lender fees, the only other closing costs that our Program allows are valid third-party fees. Third-party fees are those that your lender incurs from outside sources during the processing of your loan. With your CalPERS Loan, you only pay the exact fee charged to the lender for these services. Some of the following third-party fees may be included in your mortgage loan. Appraisal Costs; Credit Report Title/Escrow Charges - based on the size of the loan and applicable guidelines. Hazard Insurance/Property Taxes - based on the property size and location. Tax Service Fee; Underwriting Fee; Flood Certification Fee; Recording/Notary Fees; Mortgage Insurance - varies depending on loan-to-value and payment method (more than 80 percent LTV only); Any other valid third-party fee.

Conventional Mortgage Loans Only
Maximum Origination Fee - 1.25% of the loan amount; this is an addition to any Discount Points used to lower the interest rate
Private Mortgage Insurance - varies depending on loan-to-value and payment method (more than 80 percent LTV only)

Government Mortgage Loans Only
Maximum Origination Fee - 1% of the loan amount; this is an addition to any Discount Points used to lower the interest rate
Discount Fee - 0.25% of the loan amount (government refinances only**)
Underwriting Fee - $125*
Up-Front/Annual Mortgage Insurance Premium - 1.75-2.25% up-front and 0.5% annually (based on the loan amount, may differ in certain circumstances)
* Cannot be charged to the buyer in a government transaction. May be charged to the seller.
** May be charged in addition to any posted pricing, if applicable.

Closing costs can be paid by you, by the seller of the property,* a gift from a relative,* and/or Premium Pricing. Closing costs can also be financed into the loan transaction, up to the maximum LTV allowed.*

CalPERS Premium Pricing Option Top

Using the CalPERS Premium Pricing option, you can pay a slightly higher interest rate and receive funds back to pay for some of all of your closing costs and/or mortgage insurance. See your lender for details.