First Time Home owner CalPERS Home Loan v.s FHA loan

Pro’s and Con’s of a CalPERS Home Loan

Cons:
1.No longer do loans over $729,750.00
2.Can’t borrow money from retirement if the first loan amount is over $350,000.00
3.No longer offer rate float downs

Pros:
1.Competitive rates- CalPERS offers both purchase and refinance mortgages at great rates.
2.Discounted lender fee, most lenders will charge you a substantial processing fee of $600 – $800 and a admin fee of another $600-$800 CalPERS will not allow more than $350.00 to cover both those fees, a great value to clients.
3.CalPERS won’t let you get taken advantage of by a loan officer trying to overcharge you with points/origination fees, we max out the origination/points to 1% on FHA loans and 1.25% on all other loans, the amount charged is up to the CalPERS loan officer but cannot exceed the above percentages.
4.CalPERS members also have a benefit when it comes to real estate agents that participate in the program; a percentage of the Realtor’s commission gets credited back to you to cover some of the closing costs.

Compare the interest and fees. Do you have to pay MIP (mortgage insurance premium) on the CalPers loan? Compare apples and apples and by all means shop your FHA loan. Same loan (FHA) but the fees the first lender was charging were over $4000! Needless to say, the buyer went with the other FHA lender whose fees were 75% lower. There are some unscrupulous people out there.

As for closing costs, most sellers are willing to pay them in this market. Certain REO properties have a limit that the seller is willing to pay, such as Freddie Mac’s 3%.

When your Realtor structures your offer, they will put the amount of requested seller-assistance in your offer. This amount may be countered by the seller. IF the Seller counters…you are free to accept, counter back or not respond. Your obligation ends if the Seller counters you back. Think of it as a new offer. If the numbers don’t work for you, you counter back and see what happens. Keep in mind that during the countering process, the seller is free to accept another offer. Don’t get emotionally involved until your offer is accepted! You may need to write several offers on several properties before one gets accepted. In this market there are often multiple offers and your FHA loan with closing costs may get blown out by a conventional buyer with 20% down. Be patient and don’t get discouraged!

First Time Home owner CalPERS Home Loan v.s FHA loan Relate post:

Obama’s “First Time Home Buyer Stimulus Package
Bank of America FHA loan Success
FHA 203K Loan Mortgage: How Does It Work?
What Is FHA Loan? Who is eligible for FHA loan?
What Does Thirty Year Fixed Mortgage Rate Mean?

Home Loan Remortgage – Is Refinancing Your Home Right For You?
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