There are many pro and con associated with a CalPERS Home Loan. They include:
Pros:
1 - save the lender a fee, most lenders will charge you a substantial processing fee of $ 600 - $ 800 admin fee and another $ 600 - $ 800 CalPERS will not allow more than $ 350.00 to cover both fees , great value for customers.
2 -. Competitively-priced CalPERS offers purchase and refinance mortgages at high rates
3 - CalPERS will allow you to take advantage of the loan officer that you are trying to charge with points / fees, we max of origin / points to 1% on FHA loans and 1.25% on all other loans, the amount charged to the loan officer of CalPERS, but can not exceed specified percentages.
4 - CalPERS, dated 19 October still operating loans up to $ 729,750.00 with the same great rates as loans under $ 417,000.00. This will allow you to borrow more does not deal with the increased fees.
5 - CalPERS has a participating title companies give a discount on fees for the title of CalPERS members. This is another great advantage of CalPERS Home Loan.
6 - CalPERS members have the advantage when it comes to real estate agencies that participate in the program. Percentage realtor commission gets credited back to you to cover some of the closing costs
7 - The biggest advantage is that CalPERS offers FHA loans with only 3.5% down payment and that 3.5% can come from your retirement as a down payment, retirement money is not a second mortgage is a personal loan to be paid back during time, if the amount of $ 10,000.00 under its paid back over 10 years, if it is over $ 10,000.00 paid her back more than 15 years (money does not come from your retirement) use the money from your retirement there constraints (such as the first loan amount can not exceed $ 350,000.00, you can borrow half of what is in your retirement does not exceed $ 18,421.00 and no more than 5% of the purchase price .)
Cons:
1 - no more loans over $ 729,750.00
2 - No more offer rate float downs
3 - can not borrow money from a pension, if the first loan amount is over $ 350,000.00
pros completely outweigh the cons with the CalPERS Home Loan Program, you can not go wrong for CalPERS mortgages, because they have their members are protected from exploitation.