Mortgage Updates

With all the troubles in the California Economy, it seems that even CalPERS is making changes that will be affecting PERS members ability to purchase and finance through the CalPERS program.

These changes include the discontinuance of financing for nonconforming home loans... In short NO more JUMBO conventional financing.  Jumbo financing will still be available through the FHA programs in "high" cost counties. 

The other area of change is the discontinuance of the 60 day rate locks with the float down option.  In this highly volatile rate market, CalPERS is following the lead of other lenders with rate locks of 30, 60 and 90 days - but no float downs. 

There have been no changes announced to using personal retirement account as collateral for the minimum required down payment. - That is good news.  Lower Title, Escrow Fees and capped lender fees still make the CalPERS loan an attractive product through overall lower closing costs .

For 1st time home buyers, there is the possibility of a "silent" (no payment) 2nd mortgage to cover 3% of your cash to close. 

Even with the mentioned changes CalPERS is still an attractive loan program for home buyers.