Where homeownership education takes flight!

Transcription

1 100% Financing Options for CalPERS Members Thank you for attending We will begin in a moment Class Scheduled to begin at 10:00am Homeownership Educator Scott Schang Branch Manager Broadview Mortgage Corporation 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 Topics We Will Cover In This Class Eligibility Guidelines for CalPERS Loans Available 100% Financing Option Wrap Up and Take Aways Upcoming Classes

2 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 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

3 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 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

4 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% 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 up to $729,750* FHA Jumbo is anything above $417,000 Results in slightly higher interest rates Owner occupied only units ok Loan limits increased for 2,3,4 units Limits determined by MSA Call for details

5 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 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 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

6 Eligible Borrowers Active or inactive members of CalPERS, LRS and JRS Retired and annuitant 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 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, Years $10,000 - $18, Years Minimum loan is $1,000 Minimum term is 1 year

7 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 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 Two free float down opportunities FHA fixed rate first mortgage with Personal Loan provides no down payment option Lender closing costs are limited by CalPERS to $350 If you work in a Public School or Community College May be eligible for CalSTRS 80/17 3% down payment required No MIP

8 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 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

9 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 Homeownership Educator Scott Schang Branch Manager Broadview Mortgage Corporation