100% financing options for calpers members

Where homeownership education takes flight!

100% Financing Options for CalPERS Members

Thank you for attending

We will begin in a momentClass Scheduled to begin at 6:00pm

Homeownership Educator

Scott SchangSponsored 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



What is a “Real Estate blueBird”?

• Consumer advocacy project created by industry experts to inform, educate and empower homeowners

• Real, honest insider information about buying your home and choosing a loan – removing the mystery from homeownership

• Broadview Mortgage Corporation has been a direct lender in the State of California since 1988 specializing in community based lending



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



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



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



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



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



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




• 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




• 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 1st 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%



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 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 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




• 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



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





• 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





• 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 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





• 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



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 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



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

• 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• 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


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Broadview Mortgage CorporationHomeownership Educator

Scott Schang

100% financing options for calpers members

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