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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.
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.
