The 100 percent Financing Option consists of two loans, for conventional financing, a 95 percent fixed-rate CalPERS mortgage loan originated in conjunction with up to a 5 percent Personal Loan for the downpayment. For government financing, a 95 percent or greater loan-to-value (LTV) (up to maximum FHA LTV limits*) CalPERS mortgage loan, with the remaining difference financed in whole or in part with a Personal Loan. The Personal Loan is secured by the member's retirement account. The borrower will have two separate loans and two separate payments. The 100 percent financing option may only be used with single-family dwellings, condominiums, and PUD's.

* Subject to certain restrictions.

• What are the features of the Personal Retirement Account Secured Loan?
• Government 100 Percent Financing Loan Limits Are Subject To FHA Guidelines.
• When using the 100 percent financing option, must one get a mortgage loan that is 95 percent LTV or greater?
• Must one be purchasing a home in order to borrow against the retirement account?

What are the features of the Personal Retirement Account Secured Loan?

• Members (excluding retired and State Second Tier members) with accumulated employee contributions credited to their retirement account are eligible for 100 percent financing. Employer contributions can not be used to secure a Personal Loan.

 
• The Personal Loan amount can not exceed the lesser of:

1. up to 5 percent of the home value or purchase price (whichever is less). For government loans, base loan amount divided by sales price may not be less than 95 percent but may go up to maximum FHA LTV's; or
2. up to 50 percent of the available amount of the member's current contributions to their retirement account held at CalPERS.
 
• current contributions are defined as the most recent amount that has been reported by CalPERS and readily verifiable at the time of inquiry.
• members may obtain their contributions amount, available for use on a Personal Loan, by contacting the CalPERS Member Services Division at (916) 326-3141.
3. up to the maximum personal loan amount available to be borrowed in the county in which the property is located (see below). Different personal loan limits apply for conventional and government financing. For a CalPERS government loan, this will be subject to the lesser of maximum FHA loan limit and LTV guidelines or CalPERS Personal Loan Program guidelines.

***Please note that the Maximum 95 percent Mortgage Loan, plus the Maximum Personal Loan does not equal the Purchase Price due to rounding in the calculations.***

Government 100 Percent Financing Loan Limits
Are Subject To FHA Guidelines.

• Personal Loan terms range from 1-15 years, depending on the loan amount.

 

Maximum Loan Terms
$1,000 - $1,499.99	3 years
$1,500 - $2,999.99	4 years
$3,000 - $4,999.99	5 years
$5,000 - $9,999.99	10 years
$10,000 +	15 years

• Continue to earn interest on the total retirement funds. Since the Personal Loan funds are not taken from the retirement account, the borrower doesn't forfeit interest accrued or service credit, even on the portion used to secure a Personal Loan.
• FREE Personal Loan Float Down Feature - Receive the lowest Personal Loan interest rate on three applicable dates:

    -date of mortgage loan registration,
    -date of mortgage loan approval, and
    -date mortgage loan documents are drawn.
• To check an individual's accumulated retirement contributions account, call the CalPERS Member Services Division at (916) 326-3141.

Yes. The 100 percent Financing Option was created to help members secure a downpayment who would otherwise not be able to purchase a home. Therefore, the guidelines require a 95 percent CalPERS conventional mortgage loan or a 95 percent or greater CalPERS government mortgage loan in conjunction with the Personal Loan.

Must one be purchasing a home in order to borrow against the retirement account?

Yes. Can borrow against the retirement account only if the borrower is using the 100 percent Financing Option. State law does not allow a member to borrow from their retirement account for any other purpose.