• Conventional:
  10- to 30-year conventional fixed-rate mortgage loans and 30-year adjustable-rate mortgage loans are available for purchases or refinances. You may finance up to 95 percent of the value of a home to a maximum of $350,000 for a purchase transaction. On jumbo and ARMS, 80%/10%/10% financing is allowed which eliminates the mortgage insurance requirement. On conventional loans, 80%/10%/10% financing is allowed, pursuant to certain restrictions, but must have 17 to 20 percent minimum coverage of mortgage insurance.

  Conventional CalPERS loans can be combined with the Community Home Buyer and Mortgage Credit Certificate (MCC) options for first-time home buyers and low-to-moderate income home buyers.

• Government:
  30-year FHA fixed-rate and adjustable-rate mortgage loans are available for purchases or refinances (including streamlined refinances). You may finance up to 97.75 percent (98.75 percent for property values $50,000) in accordance with standard FHA guidelines.

  FHA CalPERS loans include many features to help a borrower qualify for a home loan. These include more liberal qualifying guidelines and higher loan-to-values, compared to conventional financing. For the FHA ARM, the margin may be increased to a maximum of 2.75 percent, with the margin buyup premium used to pay for borrower closing costs. There is a 1 percent annual interest rate cap and a 5 percent maximum lifetime interest rate cap for the FHA ARM.

• General:
  A CalPERS conventional or government home loan may be used for one- to four-unit owner-occupied residences, condominiums and Planned Unit Developments (PUDs) in the State of California. There is also a 100 percent financing option available for the purchase of a single-family dwelling, condominium, or PUD.

Does CalPERS offer construction loans or home equity loans?

No. However, the CalPERS Member Home Loan Program offers up to 100 percent* take-out financing for construction loans and up to 85 percent cash-back refinances,** where the cash back can be used for property rehabilitation or any other purpose.

* See 100 percent financing section. Must be a purchase transaction.
** Conventional limit is 80 percent.

Is qualifying for a CalPERS home loan any different than other loans?

No! The underwriting standards are similar to other conventional and government loan programs.

Under what terms can the home be refinanced?

If the person has an existing home loan and would like to refinance it with a CalPERS loan, the refinance will provide:

Government:

• Up to 97.75 percent (98.75 percent for property values $50,000) of the home value, if the borrower is only refinancing an existing lien (no cash back).
• Up to 85 percent of the home value, if the borrower is seeking cash back.
• Streamlined refinances are available.

  Conventional:

• Up to 95 percent of the home value, if the borrower is only refinancing an existing lien (no cash back)*.
• Up to 80 percent of the home value, if the borrower is seeking cash back.
• Streamlined refinances are available.