The CalPERS government loan (fixed and ARM) includes many features to help a first-time, low-to-moderate income, and hard-to-qualify homebuyers. 

• Maximum loan-to-value (LTV) is 97.75 percent (or 98.75 percent if the property value is  $50,000) and can include buyer's closing costs on no cash-out refinances. 
• Qualifying ratios are 29%/41%. 
• Downpayment can be a gift or a Personal Loan. 
• Non-occupant, co-borrowers can help a member qualify, with no addition restrictions to qualifying ratios (single-family dwelling only). 

• CHBP
• CHBP 3/2
• FannieNeighbors
• Community Seconds
• Magnet 5 and Magnet 3/2
• Mortgage Credit Certificate Program (MCC)

• Seller concessions can be 6 percent of the sales price, regardless of LTV.
• No income limits preclude borrower from using a CalPERS government loan. 
• Cash reserves are not required.*
• FHA ARM margin can be bought up from 2.00 to 2.75 percent, and buyup premium used to pay for borrower's closing costs. 
• FHA ARM interest rate increases limited to 1 percent annually and 5 percent, for life of loan. 
• Loans are assumable. 
• Can be used with the Mortgage Credit Certificate Program (MCC).

The CalPERS Member Home Loan Program conventional financing can be used in conjunction with a variety of Community Home Buyer's (CHBP) or Mortgage Credit Certificate (MCC) Programs. These programs help first-time, low-to-moderate income, and hard-to-qualify homebuyers. If you would like to use CalPERS in conjunction with these programs, be sure to ask for a loan officer that specializes in CalPERS, with the CHBP and/or MCC option.

CHBP

• Housing debt-to-income and total debt-to-income qualifying ratios extended from 28%/36% to 33%/38%. 
• Two months of home payments in cash reserves requirement waived. 
• Closing costs may be paid by a gift, grant, secured or unsecured loan from a nonprofit or public entity, or from a Community Reinvestment Act (CRA) initiative.
• Borrower income is limited to 120 percent of area HUD median income. 
• Homebuyer education may be required. 
• 5 percent downpayment required (Personal Loan may be used for downpayment requirement). 

All criteria of CHBP apply except: 
• 5 percent required downpayment, 3 percent must be from the member's own funds or a Personal Loan, and 2 percent can be gifted. 

• If property is located in certain low-income or minority census tracts, or is designated as a central city, you may use all the benefits of the CHBP program without the income limitation. Ask a loan officer specializing in CalPERS loans and FannieNeighbors about which properties would qualify under this option. 

All criteria of CHBP, CHBP 3/2, and FannieNeighbors apply except: 
• second loan may be secured against the property, up to a combined loan-to-value of 100 percent. 
• the second loan may be used to secure a portion of the downpayment, as well as paying closing costs. 
• a Community Second loan is typically offered by counties or cities. There may be stricter qualifying income requirements imposed by these entities. 

All criteria of CHBP apply except: 
• downpayment assistance and closing costs may be loaned or granted by an employer. 

• Allows members to use a mortgage loan interest tax credit for qualifying purposes. 
• MCC income limits, program availability, and other restrictions apply. 
• MCC programs vary. Ask your loan officer specializing in CalPERS and MCC for further details. 

Note: The Community Homebuyer's Program can be combined with the 100 percent Financing Option, and/or the MCC Program to help a borrower in qualify for a CalPERS home loan.