In 2008, 4,400 mortgages were made to CalPERS members. Since the program began in 1981, CalPERS has funded 133,000 home loans. This is a well established program with features that no longer exist in the mortgage marketplace.
Those features include:
- 60 day and 90 day interest protection
- 5% down payment
- No Money Down Mortgage – 0% down payment (with income limitations)
- Interest only Morgtgage
- Zero Out of Pocket Personal Loan
A few features of the CalPERS loan program have recently been suspended as of September 2009 due to recent economic conditions. Jumbo loans have been suspended to protect the CalPERS home loan protfolio from high default rates. Another feature that has been removed is the interest float-down feature, due to the implicit costs of providing free insurance against interest rate drops.
Despite the above cuts in the CalPERS home mortgage program, the no money down mortgage and interest only mortgage options are incredibly rare in today’s home loan market.
CalPERS members should look at mortgage offerings designed for CalPERS members to relieve their own financial pressures during this recession, or take advantage of low home prices below the maximum for a conventional mortgage ($729,750 in high cost areas of California) with a no money down mortgage. You can’t buy a mansion in the San Francisco Bay Area with a CalPERS home mortgage, but recent price drops have made financing a single family home possible with a no money down mortgage.
All of the above CalPERS home mortgage products are available to CalPERS members and CalPERS retirees. People who still currently working at an employer with a CalPERS pension but do not have 5 years minimum service credit are also eligible as well.
To begin getting your no money down mortgage, contact a bank that handles CalPERS mortgages today.
References:
“Home Loan Options Change.” PERSpective Newsletter. (Fall 2009 edition)