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Posted: April 10, 2009

The CalPERS Home Loan Program Has Mortgage Loans With Special Mortgage Rates and Benefits

The CalPERS Home Loan Program offers multiple loan programs ranging from conforming adjustable and fixed rate loans to an FHA Loan. CalPERS mortgage rates in Sacramento are exactly the same as CalPERS mortgage rates all over the state. The PERS program has set fees, float down opportunities, required education for originators, and down payment assistance. These home loan program benefits are just for CalPERS members.

PERS rates are the same from one lender to the next. This is because CalPERS actually sets the rates daily and they do not change throughout the day. They can, but I have never seen them change during the day once they are set. The rates are also structured so that a CalPERS member can pay some of their closing costs through premium pricing if they choose. PERS setting the rates is great because it gives members the ability to chose a loan offiser based on service rather than being concerned about mortgage rates in Sacramento companies vs. rates from other area mortgage companies.

The CalPERS home loan program also set's the fees that are allowed on their loans. Lender fees are limited and so are the origination and processing fees. Escrow companies will also discount their fees for a CalPERS loan even though they are not required to. Borrowers don't have to be concerned about loan fees with CalPERS setting them for all loan programs. This, again, allows the borrower to chose their loan officer based on the service that they provide rather than talking with multiple lenders in an attempt to obtain the "best deal possible" on a home loan.

Float down opportunities are another fantastic feature about this program. A float down is simply where a lender drops your rate down to a lower rate after it had already been locked. PERS allows members with locked mortgage rates to be floated down on to specific days. The day the loan is formally approved by underwriting and again on the day that the loan documents are drawn. If the CalPERS rate is lower than the day that the loan was locked then the members rate will be lowered at no cost. This is why its called an opportunity, because it must occur on those two days but still a very nice perk with the CalPERS home loan program. If rates are lower on both the approval day and on the day docs are drawn then the member will receive both float downs.

CalPERS also requires originating loan officers to be certified before originating PERS home loans. LO's have to take a course and if they pass will receive their certification and the ability to originate PERS loans. CalPERS Certified Loan Officers have to re-certify every year to make sure that all certified LO's are knowledgeable about the program and can properly assist PERS members. CalPERS also uses this as a way to keep track of the LO's in the program and allows PERS to refer members to quality loan officers who are certified.

Another great feature is one of the last remaining Down Payment Assistance Programs that actually does provide the down payment. This is done using the CalPERS Personal loan which is a loan against the borrower's CalPERS retirement. This is fantastic for members because they can borrow up to 5% of the purchase price. It can be used for down payment ,to cover closing costs or both. With this personal loan, a PERS member can still get 100% financing on a home purchase--something that is not customarily available in this market. If you or your client are a PERS member you really should look into it. The CalPERS home loan program is fantastic, offering its members universally set rates and fees, educated & certified loan officers, float down opportunities, and down payment assistance.

Author: Chris Reese

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