For public employees that need a new mortgage loan or want to refinance, a CalPERS mortgage offers tremendous benefit. Eligible members can apply for various loan options to include a 10 to 30-year conventional fixed rate mortgage or sometimes a 30-year adjustable rate mortgage. For people that want to refinance, programs allow financing up to 95% of the property's value but for a specified cap. In addition to single family homes, a CalPERS mortgage is also available for two, three, and four-unit properties, townhouses, condominiums, and PUDS, or Planned Unit Developments in the state of California and through the United States of America.
With a CalPERS mortgage, members interested in a PUD, single family home, or condominium could choose 100% financing, which would include a 95% loan-to-value ratio for fixed rate loans, as well as a personal loan that could be used as a down payment of 5%. Now, for members interested in a personal loan for a mortgage down payment, that person's retirement account could have been used as needed collateral.
The types of CalPERS mortgage loans not offered include construction or home equity, although members that want to take out 100% financing for construction loans on existing structures, or 85% cash back for FHA refinanced loans, the program would assist. Another benefit to a loan using this program is that 95% of the property's value for existing liens would be offered, as well as 85% for members that want money from the equity to use for debt consolidation on FHA loans.
To secure a CalPERS mortgage loan, the borrower would go through the same process required for any other loan offered by a traditional financial lender. However, the primary difference is that members work with highly qualified and certified loan officers that find the best program and at the lowest interest rate. With this, people that have low to moderate income or those buying a home for the first time have a much easier time securing the right loan and at the lowest interest rate.
The application and approval process is very simple and can be started online or over the phone in a few minutes. In most cases you can have an approval with all loan disclosures in less than 24 hours.