CALSTRS Home Loan Program Options And Assistance For Teachers
Here we will explain the CALSTRS Home Loan Program Benefits for California Public school district teachers and community college teachers and employees. FOR QUALIFYING DETAILS ON THE CALSTRS HOME LOAN OPTIONS FOR TEACHERS PROGRAM CONTACT US TODAY
888-892-9805
* What is the CalSTRS Home Loan Program?
The CalSTRS Home Loan Program is an agreement with lenders who provide 30-year and 15-year fixed-rate loans for the purchase and refinance of single and some multi-family dwellings. These loans are purchased specifically by CalSTRS and assist teachers and public school employees on purchasing a home or refinancing a home in California.
Bank of America serves as the program administrator, will be the servicer for all CalSTRS home loans.
* How much can I borrow with the CALSTRS Home Loan PROGRAM?
Loan limits can vary from $417,000 to $834,000 depending on the program and individual needs of each person.
* What will be the interest rate?
Interest rates for applications will change depending on the market conditions. When your loan closes, the interest rate will be fixed for the term of your loan.
* Am I able to apply for a mortgage with the CalSTRS Home Loan Program in California?
Eligibility requirements include the following:
o Employees of California public school districts or California community colleges.
o Members of the California State Teachers’ Retirement System.
o CalSTRS employees.
o Inactive CalSTRS members as long as they have funds in their CalSTRS retirement account.
o Retirees receiving CalSTRS benefits.
* Are there any restrictions on the CalSTRS home loan?
Yes. the program restrictions are:
o The home must be the borrower’s primary residence.
o The home must be located in California.
o For the 80/17 Program, borrowers and/or their spouse may not own any other properties.
* What are the features of the 80/17 Program?
With the 80/17 Program, the borrower will sign two notes:
o The first note is for a fixed rate 30 year first mortgage for 80% of the total borrowed amount.
o The second note is for a fixed rate deferred second mortgage for 17% of the borrowed amount. This secondary financing for the down payment carries the same fixed rate as the first mortgage. Payments on the 17% second mortgage are deferred for the first five years of the loan but the borrower can still make payments. At the beginning of the sixth year, accrued simple interest on the second mortgage will be added to the second mortgage’s balance, and the second mortgage will then be amortized using compound interest over the remaining 25 years. The borrower will make monthly principal and interest payments for the remainder of the mortgage term.
The combined loan-to-value (LTV) ratio is 97%
A 3% down payment is required. A minimum of 1% must come from the borrower’s own funds. The remainder may come from a gift from a relative where repayment is not required or a grant from a government agency or an employer, assisted housing program, which has been approved by Bank of America Home Loans.
Both the first and second mortgages under the 80/17 Program have a 30 year term. The second mortgage has a five-year deferred payment structure included.
Both the first and second mortgage carry the same fixed interest rate.
What A Borrower Needs For The CALSTRS Home Loan Program
The borrower must have available cash reserves that equal at least two monthly mortgage payments. Funds from individual retirement accounts and tax retirement accounts will be considered as cash reserves.
* Can I refinance with a CalSTRS home loan?
You may refinance your existing “non-CalSTRS” mortgage using the CalSTRS Standard Conventional product; however, the 80/17 product is for purchases only.
* Can I refinance my existing CalSTRS mortgage loan?
Refinances are allowed with the CalSTRS Standard Conventional product.
Borrowers with conforming CalSTRS 80/17 or 95/5 mortgages may be eligible to refinance using the Home Affordable Refinancing Program (HARP) only, part of the federal government’s Making Homes Affordable (MHA) initiative. This program applies to qualifying first mortgages only, not second liens.
Let us help you qualify for the CALSTRS HOME LOAN OPTIONS FOR TEACHERS PROGRAM and help set you up with a beneficial future of affordable home ownership. CALL US TODAY 888-892-9805
