CalPERS Home Loans: The CalPERS Mortgage and the Home Owner's Dream

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by: Arthur Mayberry
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Word Count: 413
Date: Tue, 28 Dec 2010 Time: 10:07 PM

With real estate prices at near record low levels and interest rates nearly at 0%, there's never been a better time to buy a home by getting a CalPERS mortgage. Anyone who is active, inactive or a retired member of the CalPERS, the legislators’ retirement system, or the judges’ retirement system is eligible for CalPERS home loans. These loans are part of the benefits of working in the state retirement system. Together with the unusual housing market situation, CalPERS home loans are making it possible for many state workers in California to own homes for the first time in their lives.

You can borrow money from your CalPERS retirement for the purpose of a down payment for a CalPERS mortgage. To figure out how much to borrow, CalPERS home loans can be calculated several different ways. It's important to note that the first CalPERS mortgage cannot exceed $350,000 should you use the personal loan option.

First, CalPERS home loans may not be more than 5 percent of the purchase price. Second, you cannot borrow more than $18,421. It is possible to get borrow half of what you have in your retirement account, not exceeding $18,421 or 5 percent of the purchase price. This money must be applied to your CalPERS mortgage.

It's also important to note that if you're looking to purchase say a $300,000 home with your CalPERS mortgage, you can take the down payment from your retirement account so long as you have at least twice that in the account.

Choosing which type of CalPERS home loans work best for you depends on your particular situation. A CalPERS mortgage will either be a conventional loan or a conforming loan. Conventional CalPERS home loans are offered by non-government sponsored lenders. These can be fixed loans from anywhere from 10 to 30 years. Conforming loans are CalPERS home loans issued by federally qualified lenders. As such, each conforming CalPERS mortgage is insured by the US Federal Housing Authority, a division of the US Department of Housing and Urban Development.

Investing in a home is just as much a part of retirement planning as plotting the pension itself. With housing prices at their lowest levels since the boom days after World War II, securing a home to live the rest of your days in just makes sense. CalPERS home loans make it all possible. Use your retirement to apply to a CalPERS mortgage and learn the security of being a home owner.

About the Author

Arthur Mayberry is the author of this article on CalPERS Mortgage. Find more information about CalPERS Home Loans here.

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