CalPERS Home Loans

Fixed Rate Mortgages
The traditional fixed rate mortgage is the most common type of loan programs, where monthly principal and interest payments never change during the life of the loan.

Adjustable Rate Mortgages (ARM)
Adjustable Rate Mortgages (ARM)'s are loans whose interest rate can vary during the loan's term. These loans usually have a fixed interest rate for an initial period of time and then can adjust based on current market conditions.

Hybrid ARMs (3/1 ARM, 5/1 ARM, 7/1 ARM, 10/1 ARM)
Hybrid ARM mortgages, also called fixed-period ARMs, combine features of both fixed-rate and adjustable-rate mortgages.

FHA Loans
FHA home loans are mortgage loans that are insured against default by the Federal Housing Administration (FHA).

VA Loans
The VA Loan provides veterans with a federally guaranteed home loan which requires no down payment. This program was designed to provide housing and assistance for veterans and their families, and the dream of home ownership became a reality for millions of veterans.

Interest Only Mortgages
A mortgage is called "interest only" when its monthly payment does not include the repayment of principal for a certain period of time.

Components of an ARM
To understand an ARM, you must have a working knowledge of its components.

Commonly Used Indexes for ARMs
This is a list of the most commonly used indexes by ARM lenders.

Balloon Mortgages
Balloon mortgages have a note rate that is fixed for an initial period of time, and then the remaining principal balance is due at the end of the term.

Reverse Mortgages
Reverse Mortgage is a type of home equity loan that allows you to convert some of the equity in your home into cash while you retain home ownership.

Graduated Payment Mortgages
Graduated Payment Mortgage is a loan where the payment graduates (increases) annually for a predetermined period (e.g. five or ten years), and then becomes fixed for the duration of the loan.

What kind of loan program is best for you?
So what kind of mortgage is best for you? Fixed rate? Adjustable rate? Government loans? The truth is, there is no one correct answer.

You may borrow money from your CalPERS retirement for the pourpose of a down payment of a home only (not to used for closing costs) and it must be used in conjunction with a CalPERS first mortgage as well. The CalPERS personal loan is calculated 3 different ways to figure out how much you can borrow. Remember the first mortgae cannot exceed $350,000.00 if you want to use the personal loan option

1) You may borrow no more then 5% of the purchase price.
2) You cannot borrow more then $18,421.00
3) You can borrow 1/2 of what you have in the retirement account (not exceeding $18,421.00 or 5% of the purchase price.

1) Your looking to purchase a home for $300,000 with a CalPERS FHA first mortgage, the 3.5% down payment required ($10,500) can come from your CalPERS retirement account if you have twice the amount in the account ($21,000.00)

2) Your looking to buy a home for $300,000 and your doing the same 3.5% down but you only have $19,000.00 in your retirement account, this means you can borrow 1/2 ($9,500) so you will be short $1,500 to make the full 3.5% down so you would have to bring in the difference from your own account or a gift from a family member.