Closing costs for a CalPERS transaction can be paid with your own money, by the seller of the property,* a gift from a relative,* or with a FHA/ARM, using a margin buyup premium. Closing costs can also be financed into the loan transaction, up to the maximum LTV allowed.*
Many other loan programs offer "over-par" pricing. This is where the lender charges you a higher than market interest rate in exchange for funding closing costs. However, be aware, you will be paying a higher interest rate for the life of the loan. In addition, in many instances, a company will encourage loan officers to offer "over-par" pricing because the loans are more profitable for that company. CalPERS does not offer "over-par" financing, except with respect to the FHA ARM margin buyup and limits the closing charges that can be charged to you by your lending institution. The CalPERS Member Home Loan Program protects you from "junk fees" and overages typically collected in other loan program transactions.
*Subject to certain restrictions.
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