The California Public Employees’ Retirement System (CalPERS) Member Home Loan program is designed to give eligible members significant benefits that can help buy or refinance a home.
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.
The CalPERS home loan program offers multiple loan programs ranging from Conforming adjustable and fixed rate loans to a FHA Loan. This home loan opportunity exclusively for CalPERS members is available nationwide. You can take advantage of this unique program, with features for qualified borrowers including:
- Conventional fixed and FHA loan programs 100 percent financing option
- Purchase and refinance
- Competitive interest rates
- Set loan fees thanks to CalPERS maximum fee controls
- No cost 60-day rate lock
- Two opportunities to receive a lower CalPERS rate—if rates drop during final loan approval or when final documents are issued to complete the loan
- Lower your mortgage insurance costs with some loan options
- Lower typical title and escrow fees
- Increased program jumbo loan limits
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. 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.
The CalPERS home loan program also sets the fees that are allowed on their loans. Lender fees are limited and so are the origination and processing fees. Escrow companies will also discount their fees for a CalPERS loan even though they are not required to. Borrowers do not have to be concerned about loan fees with CalPERS setting them for all loan programs. This, again, allows the borrower to choose their loan officer based on the service that they provide rather than talking with multiple lenders in an attempt to obtain the “best deal possible” on a home loan.
Float down opportunities are another fantastic feature about this program. A float down is simply where a lender drops your rate down to a lower rate after it has already been locked. It allows members with locked mortgage rates to be floated down on two specific days. The day the loan is formally approved by underwriting and again on the day that the loan documents are drawn. If the CalPERS rate is lower than the day that the loan was locked then the member’s rate will be lowered at no cost. This is why it is called an opportunity, because it must occur on those two days but still a very nice perk with the CalPERS home loan program. If rates are lower on both the approval day and on the day docs are drawn then the member will receive both float downs.
Everything that you have to remember is the CalPERS Member Home Loan Program offers members security, protection, and choice when purchasing or refinancing a home. To get more information you can contact: Land/Home Financial Services, Inc. 1855 Gateway Blvd., Suite 140 Concord, California 94520,Tel: 888-853-7334, Fax: 925-407-2897, Web-site: http://www.getfreereport.com.