An Introduction to CalSTRS, CalPERS and CHDAP Loan Programs Homeownership Education Workbook and Notes

Transcription

1 An Introduction to CalSTRS, CalPERS and CHDAP Loan Programs Homeownership Education Workbook and Notes

2 Slide 1 An Introduction to CalSTRS, CalPERS & CHDAP Homebuyer Programs We will begin in a moment Homeownership Educator Scott Schang Branch Manager Broadview Mortgage Corporation Katella Branch Slide 2 CalSTRS, CalPERS, CHDAP Who We Are and Why We Do This Katella Branch (Orange County) has been a Purchase Money lender since 2006 We specialize in loan programs for Education Professionals, Public Employees and First Time Homebuyers Homebuyer education is our passion Over 8,000 have registered to attend our on-line classes We receive between 6,000 to 10,000 visits a month on our niche education and information websites Our experience has been that many Homebuyers & Real Estate Professionals are unaware of these programs or are misinformed about them Slide 3 CalSTRS, CalPERS, CHDAP The Purpose and Goals of this Class Purpose: Introduce you to special home buying programs you may be eligible for as an education professional, public employee or first time homebuyer Goal: Educate Home Buyers to make informed decisions during the home buying process Goal: Give you no bull perspective on many of the challenges that can be avoided through education Goal: Put you in a position of competently Acting and not Reacting during the home buying process

3 Slide 4 CalSTRS, CalPERS, CHDAP Topics We Will Cover In This Class A Complete Guide to the CalSTRS 80/17 Education professionals home purchase loan CalPERS Loans for Public Employees Down payment assistance program California Housing Finance Agency CHDAP Down payment and closing cost assistance program Slide 5 CalSTRS, CalPERS, CHDAP 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

4 Slide 6 Who s Eligible for a CalSTRS 80/17 Any employee of a California public school or community college Can work in any capacity Can work in school district Pay check stub from public school system Members of CalSTRS Provide certificate of eligibility Do not have to be currently employed Any eligible borrower makes family eligible Slide 7 CalSTRS 80/17 Compared to FHA Lower Down Payment than FHA 3.5% minimum for FHA 3% required for CalSTRS Interest Rates as compared to FHA Set by CalSTRS Cannot be manipulated by lenders FHA rates are set by lender and can vary greatly No UPFRONT Mortgage Insurance Premium No MONTHLY Mortgage Insurance Slide 8 Property Qualifications Eligible Properties Single Family Residence - Detached Condominiums / Townhomes - Attached Planned Urban Development (PUD) Must be owner Occupied Must be located in State of California Cannot own any other properties Mobile home not on a permanent foundation and on leased lot/park is not considered real property

5 Slide 9 Loan Structure Max 1 st Loan Amount - 80% Qualify on 80% Only Increases your purchasing power Max 2 nd Loan Amount - 17% No payments for first 5 years 30 Year fixed rate loan only Same interest rate for both loans One time free float down both loans If the rates go up you re protected If the rates drop you may lower your rate Slide 10 Max Loan Amounts Conforming Loan Amount Up to $417,000 First mortgage loan amount $521,250 Max Purchase Price Jumbo Loan Amount Up to $536,082 First mortgage loan amount Max total loan amounts $650,000 Up to $670,103 Max Purchase Price Jumbo interest rate is typically 1% higher

6 Slide 11 CalSTRS 80/17 Second Mortgage Second Mortgage Loan Deferred payments for 5 Years Simple interest accrues for deferred period Accrued interest added to principle balance Fully amortized over remaining 300 months No surprises guarantee - You will know exactly what your payments will be Although you qualify on first mortgage only, we will always send you a good faith estimate with total payment Slide 12 CalSTRS 80/17 - Costs CalSTRS does not allow lender to roll in closing costs into the rate Costs are same as all Fannie Mae, non Government loans Must be paid at escrow All fees that are calculated as a % are assessed on the first mortgage only and not the purchase price Adverse Market Delivery fee -.25% Minimum FICO Scores Risk Based Pricing 620 for Loan Amounts up to $400, for Loan Amounts up to $650,000 Combined 1 st & 2 nd Loans There is no Risk Based Pricing above 740 Fico Slide 13 CalSTRS 80/17 - Costs You will most likely qualify for an FHA loan as well Potentially lower cost than FHA - may require more money brought to the closing table If closing cost funds availability becomes a challenge Look at FHA based programs Similar total cost when compared to FHA FHA allows more flexibility for paying closing costs Education professionals that contribute to CalPERS can also consider a CalPERS FHA loan option May also be eligible for down payment and closing cost assistance

7 Slide 14 Down Payment & Closing Costs Down payment requirements 3% down payment 1% from buyer s own funds Sources of Down Payment and Closing Costs Down Payment - Borrower's own funds Down Payment - Gift from relative Down Payment Grant from government agency Closing Costs - Seller contributions up to 3% Closing Costs - Borrower's own funds Closing Costs - Gift from relative CalSTRS will not allow additional liens DPA, CCA Slide 15 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

8 Slide 16 Available Loan Programs CalPERS offers Conventional & FHA Loan Options Conventional loan programs are subject to PMI Underwriting guidelines follow standard guidelines CalPERS sets interest rates and fees CalPERS - Down Payment Assistance Program Slide 17 Property Qualifications Eligible Properties Single Family Residence Detached 2-4 Unit Properties Attached *Conforming Only Up to $417,000 loan amount Cannot use down payment assistance 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 Slide 18 Down Payment Assistance Program First loan amount cannot exceed $350,000 CalPERS Personal Loan Guidelines are more restrictive than CalPES Conventional or FHA Personal Loan is available to take out for the purposes of contributing to the down payment required to purchase a home Not closing costs

9 Slide 19 Down Payment Assistance Program 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 Slide 20 Down Payment Assistance Program CalPERS Personal Loan Guidelines 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

10 Slide 21 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 first time homebuyer restrictions can own other homes as long as not owner occupied No multi family properties - 2 to 4 units not eligible Slide 22 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, Years $10,000 - $18, Years Minimum loan is $1,000 Minimum term is 1 year Slide 23 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

11 Slide 24 Program Highlights 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 At time of underwriting approval At time of cleared for loan documents 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 also be eligible for the CalSTRS 80/17 3% down payment required No MIP Slide 25 CHDAP Assistance Program California Homebuyer s Downpayment Assistance Program - CHDAP Maximum Loan Amount 3% of the sales price or appraised value, whichever is less A maximum 102% CLTV applies to CHDAP loans when used with a CalHFA or non-calhfa first mortgage Note: When CalHFA subordinate loans are combined with FHA, VA or USDA first loans, the financed upfront MIP or guarantee fee is included with the base loan amount in calculating the first loan amount LTV

12 Slide 26 CHDAP Assistance Program California Homebuyer s Downpayment Assistance Program - CHDAP Fixed interest rate for the entire loan term Rates set and published by CalHFA Rates do not float like typical loan programs See tools & resources on site for link to rate sheet Term of CHDAP Loan Term matches the term of the first mortgage Payments on the junior loan are deferred for the life of the first loan Minimum Borrower Contribution Minimum 3% of the sales price required from the borrower(s) own funds Slide 27 CHDAP Assistance Program California Homebuyer s Downpayment Assistance Program - CHDAP Repayment of the principal and interest on the junior loan shall be due and payable at the earlier of the following events: Transfer of title Sale of the residence Payoff or refinance of the first loan Upon the formal filing and recording of a Notice of Default (unless rescinded) Program Restrictions May not be used with ECTP- Extra Credit Teacher Program May not be used with CalSTRS 80/17 per CalSTRS guidelines Slide 28 Using CHDAP with CalPERS Using CHDAP with CalPERS CalPERS Personal Loan meets borrower minimum contribution requirements CHDAP can be used for down payment assistance or closing costs CalPERS FHA 1 st Mortgage + Down Payment Assistance + CHDAP = Max 102% CLTV Loan

13 Slide 29 CalSTRS, CalPERS, CHDAP Wrap up and Take Aways Broadview Mortgage Corporation is a direct Lender in California since 1998 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 recommend you to a qualified Real Estate Agent that shares our values and passion for education Slide 30 CalSTRS, CalPERS, CHDAP Follow up Tools & Resources You will receive a Thank you with links to the information we ve talked about here today including Copy of Workbook & Notes PDF Links to the topics we discuss in class CalSTRS Interest rates CalSTRS links and resources CalPERS Interest rates CalPERS links and resources CalHFA CHDAP program guidelines CalHFA Interest rates

14 Slide 31 Thank You for Attending If you enjoyed this class Tell a friend Please tell us how we re doing Follow up includes a link to Praise page Your feedback is greatly appreciated Homeownership Educator Scott Schang Branch Manager Broadview Mortgage Corporation