CalPERS is a great program an Orange County First time buyerwho is eligible. To be eligible a borrower needs to be either an active, inactive, or retired member of CalPERS. Anyone from JRS (Judges Retirement System) or LRS (Legislators Retirement System) will also qualify. Typically, teachers are not CalPERS members. However, they are eligible for the STRS program, which is very similar to the PERS program.

The CalPERS Program offers the following:

• Competitive Daily Interest Rates
• 30, 60, and 90 day rate lock options. The 60 and 90 day locks offer TWO Float Down options, which are discussed in more detail below.
• Down Payment and Closing Cost Assistance
• CalPERS is available for purchase, rate and term and cashout refinances.
• CalPERS is for Owner Occupied properties only.

The CalPERS Float Down Option is excellent. On a typical Conventional fixed rate loan the rate lock can be a major issue if interest rates are fluctuating up and down, as they have been during the most of 2008. With a CalPERS loan, the interest rate is automatically locked on the day of the loan application is registered with CalPERS, which should typically be the day of the initial loan application. Later, when the loan is approved, if the interest rate has dropped, the rate is relocked at the lower rate. If they rate has gone up, the borrower get to keep the initial rate lock. When it gets closer to the closing date and loan documents are prepared, if rates are lower, the borrower would again get a lower rate. This is really a huge benefit. On a Conventional loan, if the rate is locked at the beginning of escrow then that is it. No more rate locks. If rates go down, the borrower would not get the benefit of the lower rate.

Easy Loan Process

The loan processing for a CalPERS loan is fairly simple. Since a CalPERS member is W2'd (unless they are an inactive member and now self employed), all that is need for income verification are pays tubs and W2's.