CalPERS ~ Down Payment Assistance

Are you a California State Employee? County Employee? School or University Employee? California Legislature? Municipal Employee? Any one of these employers may or currently utilizes the CalPERS retirement system. What is CalPERS? CalPERS provides retirement and health benefits to more than 1.6 million public employees, retirees, and their families and more than 2,500 employers. In lieu of Social Security, many agencies participate in the CalPERS program as a benefit to their employees.

In addition to the retirement and health benefits offered by CalPERS, there is also a personal loan that is offered to members in order for them to purchase a home!

This Personal Loan can be used for down payment assistance only. The money borrowed is secured by ALL retirement funds in the system and will not be withdrawn from the members personal account. There will not be a lien against the property for the loan. Funds in the members retirement account is only used as collateral in case of default.

These funds are considered borrowers own funds and can be used to cover up to 5% of the down payment. This is a great option for financing with an FHA loan! The loan is considered as part of the borrowers debt to income ratio, but does not affect the LTV/CLTV of the property.

Maximum loan amounts are limited to the lesser of maximum of 5% of the purchase price, 50% of the members personal contribution to their retirement account or $18,421. Loan terms are from 1 to 15 years based on the amount of funds borrowed.

In addition to the benefit of being able to utilize funds from the retirement fund, closing costs are controlled, Mortgage Insurance is available at reduced rates, reduced escrow and title fees through Old Republic Title and Stewart Title!

This is a win win situation for First Time Home Buyers that do not have the money for a down payment! Ask your loan officer today if they are a certified to do CalPERS loans. If not, contact me for additional information on how they can become certified or to be referred to someone who is!