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What is the CalPERS Float Down Feature?
For members, whether active, inactive, or retired, benefits associated with CalPERS are incredible. Although qualifying with a program such as this is no different than with a traditional lender, the benefits are far greater. As an example, every loan officer is required to undergo basic and advanced training before loans could be offered to people under the CalPERS program. In addition, people have two options for a CalPERS float down feature.
The first choice for a CalPERS float down feature is that home buyers who are members can choose from a 60-day or 90-day rate lock-in for FHA loans or conventional. This means that the lowest rate that this program can offer for interest would be secured, and the rate would be lowered based on one of three dates. The first date would be the date the loan rate was locked in, the second would be the date the loan application was approved, and the third would be the date on which the final loan docs are drawn and sent to the title company. The second float down feature would be on the personal loan rate that is used for your down payment if you choose that option. This rate would also be decreased on the same dates as the first mortgage.
With the CalPERS float down feature, the lender agrees to drop the home buyer’s rate below what was already locked into so members of the program gain even more benefit. Commonly, the day when the loan was approved, by the underwriters is when a float down would occur but as mentioned, this could also be on the date that the loan documents were drawn up.
What happens is that when the CalPERS float down feature results in the interest rate going down, the member’s rate is also lowered without the member being charged. Now, if the rates were to be lowered on the day the loan was approved, and the same day that the loan documents were drawn, then only one float down would apply since they were both on the same day. Of course, many other benefits exist for members, which is why this has become such a popular option for securing a mortgage loan.
So what are the benefits to you for this feature?
Lets say you have an accepted offer on the house of your dreams, you call us and want to lock in an interest rate. Assuming that rates are 5.5% APR that day and you lock in for 60 days of protection. Then your loan is approved 5 days later and the rates went up to 5.875% APR. Your rate would stay at 5.5% APR since you are locked and can not go higher than that during your lock period. Then two weeks later your final loan documents are ready to be drawn and interest rates are at 5.125% APR. You will benefit by getting the lowest of all those three days and will have a final rate locked in at 5.125 APR for the life of the loan! This can represent a significant savings over the term of your loan. There is no guarantee that this will happen but it does quite often.
0 commentsAdvantages of a CalPERS Mortgage
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 perhaps 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 throughout 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 be 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. To start online you can go to the secure loan application or call Sean Safholm toll free 1.888.415.2000.
0 commentsPeace of Mind Guarantee
More than just a catchy marketing campaign.
Our ‘Peace of Mind Guarantee’* program is a
genuine commitment on our part and our policy on how we conduct business. Once you
understand the elements of our Peace of Mind Guarantee loan policy, we think you will
agree there is no reason to work with any other lender.
Guaranteed Lender Closing Costs
VITEK guarantees all your lender closing costs based on a signed good faith estimate
for lender approved program, or we credit you the difference.
Guaranteed Real Time Loan Status Updates
Our state of the art communication system emails you frequently during your escrow to
update you on all your loan activity as it happens.
Guaranteed On-Time Close
Your loan documents will be delivered to the title company at least four days prior
to the scheduled close of escrow.
If VITEK delays close of escrow, you will receive a $50 per day credit up to $250.
Guaranteed Best Value
If you have final loan approval with VITEK, and choose to close with another lender,
we will pay you $250.
Program Guidelines
Borrower eligibility for “Guaranteed Best Value” payout is contingent upon borrower having final underwriting approval status on current loan with VITEK Mortgage Group. In the event that borrower then chooses to close with another lender, VITEK Mortgage Group will pay borrower the amount of $250. At that time, borrower will be responsible for any and all appraisal costs incurred on current loan transaction with VITEK Mortgage Group if not already pre-paid by borrower.
VITEK Mortgage Group’s “Guaranteed On-Time Close” policy requires borrower to provide all required documentation requested a minimum of 10 business days prior to close of escrow. Borrower must allow for a minimum of 17 business days from time of application to time of close. To permit proper funding and recording time frame, VITEK Mortgage Group requires all borrowers must sign loan documents at least 48 hours prior to the close of escrow. (All government and bond loan programming are excluded from VITEK Mortgage Group’s “Guaranteed On-Time Close” policy.) Borrower understands that VITEK Mortgage Group’s “Guaranteed Closing Cost” policy is based on lenders closing costs only and must have a signed ‘good faith estimate’ for final loan approved product With VITEK Mortgage Group.
Comments Are Disabled For This PostWelcome to calstatelender.com. We are here to answer your questions and get your loan approved and funded with “peace of mind guaranteed”! We have been specializing in CalPERS home loans for over 10 years and have helped thousands of members purchase and refinance. The CalPERS home loan program has many features designed to save you money! Our process is very simple and you can be approved today. Just complete our simple online loan application and we will start on your loan approval today. You can also chat with us online now or call us toll free. We strive to make your loan transaction quick and easy.
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