Benefits of Using a CalPERS Lender

CalPERS is the acronym that stands for California Employees’ Retirement System.  As a part of this program are various opportunities specific to investments, one being real estate.  Under this program, lenders and brokers are approved and trained for membership, gaining incredible insight into mortgage loans that have set interest rates.  For the person that becomes a CalPERS lender, all the guidelines of the program are provided to help real estate professionals secure the best mortgage loans possible.

For mortgage lenders that want to offer their customers the best, being a CalPERS lender gives them a huge advantage.  In addition to being able to create great loans, the program also helps the lender develop a new method for revenue, which ultimately boosts business.  To ensure that lenders involved with this program are on track, various resources and tools are provided.

One of the factors that created the current real estate downfall was that loans were not qualified.  To ensure the market can get back on track and remain there, a CalPERS lender is required to meet very specific criteria.  For example, the lender or broker has to be approved by Fannie Mae, have a net worth of $500,000 or more, and have been in business for at least two years, showing profits during that time.  While criteria is set for becoming a member of the CalPERS lender program, getting involved is actually uncomplicated.

Brokers can also become a member of the program but in this case, the rules for membership are slightly different.  The broker would need to have a sponsor from a wholesale lender that participates in the program.  The easiest way would be for the broker or individual working for a broker to look at CalPERS lender rate sheets, and then contact one or more lenders addressing interest in the program.  Brokers wanting to get involved with the CalPERS lender program would also be required to undergo special training and agree to follow the program guidelines, to include marketing efforts.

Download your copy of the “Complete CalPERS Home Buyers Guide” and see what we put on the last page!

Competitive Interest Rates
We offer competitive rates on a variety of loan options to meet your individual needs. Rates are updated daily, Monday through Friday.

60- or 90-Day Rate Protection
Members may lock in their interest rate for 60 or 90 days, and receive protection against market increases. Other loan programs, offering shorter lock periods, expose borrowers to the mercy of the market.

30-Day Rate Lock Option
Now you can offer CalPERS Members an even LOWER interest rate! Check our rate sheet for the 30-day lock rates.

Controlled Closing Costs
CalPERS minimizes some of the fees involved with a home loan, making the CalPERS loan very affordable. Many other loan programs have much higher closing costs.

100% Financing Option
We offer various options for your borrowers to purchase a home with no out-of-pocket costs for the down payment. Our 100% financing options could let you secure up to $18,421 for a down payment. We even offer down payment assistance on jumbo loans.

Reduced Mortgage Insurance Rates
The CalPERS Member Home Loan Program offers greatly reduced mortgage insurance rates. Genworth, MGIC, PMI, RMIC, Radian, Triad and UGIC mortgage insurance companies have reduced their rates by as much as 1/8 percent (.125 percent).

Reduced Escrow & Title Fees
Member can receive substantial savings on their escrow and title fees, offered by both Old Republic Title and Stewart Title.

Closing Cost Assistance
CalPERS Members can use premium pricing interest rates, a gift from a relative, and/or seller contributions to pay for closing costs (Some of our financing options have CLTV limits over 100%, helping your borrower cover closing costs.)

Personalized Real Estate Assistance Programs
You can take advantage of personal assistance with your real estate transaction and get a cash rebate with SMARTMOVE®, or the MAXADVANTAGE Programs. Rebate amount is determined by the purchase price of the home and is subject to certain restrictions. Programs may not be available in all areas. Please call us at (888) 415.2000 for a referral or more information.

Premium Pricing
Premium pricing allows the member to accept a slightly higher interest rate and receive funds to help pay for closing costs and/or mortgage insurance. This option helps members who have enough income to qualify for a home loan but lack some of the funds needed to close escrow.

Information from the CitiMortgage CalPERS website.

One of the great features of the CalPERS Home Loan Program is finally eliminated. This is another example of the ever changing Mortgage Market.  CalPERS has also discontinued the Non-Conforming or “Jumbo” loan program.

Here is the  information directly from the CalPERS Bulletin:

FLOAT DOWN OPTION DISCONTINUED
Effective October 19, 2009 the CalPERS Member Home Loan Program will discontinue the 60- and 90- day float down options. Loans locked prior to October 19, 2009 will be honored, however they must be cleared for purchase by the delivery expiration date; lock extensions may be granted but the float-down option expires with the original expiration date.

CONVENTIONAL NON-CONFORMING FIXED RATE PROGRAM DISCONTINUED
Effective October 19, 2009 the CalPERS Member Home Loan Program will discontinue the Conventional Non-Conforming Fixed Rate Program. Loan amounts above Conventional Conforming Loan Limits (the HERA limits) continue to be available based on the property location (by city/county) and the number of units. Refer to the following link to determine maximum loan amount and county eligibility: https://www.efanniemae.com/sf/refmaterials/loanlimits/

CalPERS has launched the “high Balance” confirming product so if you have a loan higher than $417,000.00 please call us for options and pricing.

Sean

Gaining a Better Understanding of CalPERS Loans

CalPERS loans have been offered for more than 25 years, providing qualified members of the program great cost-saving assistance and protection, whether purchasing a new home or refinancing an existing home.  Loans under this program are available throughout the country, providing a wide range of options.

People that benefit from CalPERS loans are anyone that is a current, past, or retired member of CalPERS, as well as the Judges’ Retirement System and Judges’ Retirement System II and Legislators’ Retirement System.  Along with incredible choices of CalPERS loans, members also get the lowest interest rates available and can qualify for special loan programs.

The variety of CalPERS loans is quite impressive.  For instance, members could choose a conventional loan with adjustable or fixed rate interest.  Not only are conventional loans available for new home purchase, but also refinancing.  Government loans are also available, which includes FHA loans that have HUD underwriting.  Even Interest-only loans are an option, set up with adjustable or fixed rate interest and for a period of seven to ten years.

Another option for CalPERS loans is for 100% financing.  Under this category, members actually have multiple program options designed to lower the amount of required down payment.  Along with the homeowner choosing a standard type of loan, CalPERS loans can also be specially designed.  For instance, a member could take out a conventional loan coupled with special programs that would help if income were low to medium or if the person were a first time buyer.  Usually, these special loan programs require a very small down payment, if any at all.

Members offer other loans to include 401K and asset secured loans.  In this case, a person wanting to buy a home but without proper funding for a down payment could go through the qualification process for a personal loan, using the money as the down payment for buying a home.

Role of the CalPERS Loan Officer

Any person that works as a CalPERS loan officer has completed in-depth training so members are provided the best service, greatest loan options, and lowest interest rates possible.  Therefore, anyone originating a CalPERS loan has undergone basic and advanced training services so members are provided with marked savings and great protection when buying a new home or refinancing an existing home.

This means that a CalPERS loan officer cannot offer people loans under this program until all required training and workshops have been completed and passed.  The benefits are tremendous, providing a new and innovative revenue stream for the lender but the most attractive mortgage loans to the borrower, so everyone wins.

Each CalPERS loan officer completes a standard training services course, as well as an advanced training course.  At the completion, this person must take a knowledge test and if passed, he or she would become a certified loan officer for CalPERS.  One of advantages is that the CalPERS loan officer would be able to receive loan referrals directly from CitiMortgage.  However, the loan officer must meet a specific level of production for each quarter and complete new certification annually.

For the borrower working with a CalPERS loan officer, this is great news.  The borrower is being provided with professional services from a motivated lender.  Therefore, the loan officer goes out and searches for the best loans and lowest interest rates available rather than settling on something subpar.  As a result, members are provided with a cohesive list of loan options, many with low down payments.

In addition, the CalPERS program sets rates daily and limits the fees that can be charged, so you do not need to worry about getting the best deal.    Borrowers have the opportunity to look at a loan officer’s record, and then choose the professional based on level and degree of service history.

Enjoying Low CalPERS Loan Rates

Members of CalPERS enjoy a number of benefits, one being the low CalPERS loan rates. While rates change daily, a variety of programs are eligible for low interest rates and fees to include a Jumbo 15-year Fixed Mortgage, a Jumbo 30-year Fixed Interest, FHA 30-year Fixed Mortgage, Conventional 30-year Fixed Mortgage, Conventional 15-year Fixed Mortgage, and the CalPERS Personal Loan.

Along with the low CalPERS loan rates, the program also includes a variety of free services to members such as the Free Interest Rate Tracking Service. With this, members can keep a closer eye on ever changing interest rates and fees, as well as the different combinations of options that the program provides.

A popular choice for CalPERS loan rates is with the 60-day lock-in. With this option, members are guaranteed that the interest rate quoted would be locked into for a full 60 days automatically without charge. Therefore, if interest rates were to increase, the member would be fully protected.

With this option for CalPERS loan rates, members would have the ability to get a lower rate if they went down. In addition to securing a loan with low interest, if interest rates were to drop for any reason, members would benefit from protection with an option called the “two-interest rate float down”. Although no fee would be involved to lock in for a low CalPERS loan rate, you still get protection for 30 to 90 days.

The “float down feature” that comes along with locking into a CalPERS loan rate is based on three dates to include the date the loan application was submitted, the date the loan was approved, and finally, the date that the final loan documents were created. Unlike other mortgage loans, this gives members unique protection so once the rate is locked into, it cannot go up, only down.

You can lock your CalPERS Mortgage rate for 30, 60 or 90 days. The actual interest rate and APR are posted daily by CalPERS. You can lock in less than five minutes. Contact a CalPERS loan consultant at 1.888.415.2000 to go over your locking options and to secure your interest rate. Remember, you will have two chances to get an even lower rate during the process.

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.

********Breaking News***********

CalPERS has announced that the float down feature will be discontinued.

Advantages 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. 

Peace of Mind Guarantee

More than just a catchy marketing campaign.

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.

• Benefits of Using a CalPERS Lender
• The Complete CalPERS Home Buyers Guide is Here!
• CalPERS Home Loan Features
• FLOAT DOWN OPTION DISCONTINUED
• Gaining a Better Understanding of CalPERS Loans

• Banker Vs. Broker
• CalPERS 100% Loan
• CalPERS FHA
• CalPERS Loan Rates
• CalPERS Rate Lock
• Footer Navigation
  • Legal
  • Licensing
  • Privacy Policy
• VIDEOS