Special offer

California State Teachers Retirement System Program

By
Real Estate Agent with TIM LORENZ - Elite Home Sales Team DRE# 00919781

California State Teachers Retirement System Program

  

3% down Payment, 17% Second and an 80% First, No Mortgage Insurance

   This is a program that the Kevin Budde Team with Bank of America sent to us.  I thought it was important for the agents and public to know.

   To be eligible for the CalSTRS Home Loan Program, the borrower must be an employee of a California public school district, a California community college or a member or employee of the California State Teachers Retirement System.

  There are two programs, conforming and non-conforming. The maximum conforming program is an 80% first loan to $417,000, a second loan to $88,612 for a maximum combined loan amount of $505,612. The maximum purchase price is $521,250.

  The maximum non-conforming program is an 80% first loan to $536,082, a second loan to $113,918 for a maximum combined loan amount of $650,000. The maximum purchase price is $670,103.

  The borrowers cannot have credit scores below 620 for combined loan amounts up to $400,000 and 680 for combined loan amounts exceeding $400,000. The interest rate will be the same for both the first and the second mortgage, which is deferred.

  The second mortgage rate has a 30 year term with a 5 year deferred payment structure. No payments are required on the second the first 5 years. Beginning the sixth year, the accrued interest will be added to the loan balance. The loan will then be amortizing using compounded interest over the remaining 25 years, with the borrower making a monthly principal and interest payment. Since there are no payments on the second the first 5 years, the payment is not counted into the qualifying ratios of the borrower.

  There is no first-time home buyer requirement however, the borrower and their spouse may not own any other properties and they can only have one CalSTRS loan at any given time. The borrower must have 1% of their own funds and the remaining 2% may come from a gift from a relative.

  The program is for purchase transactions only, owner occupied and primary residences. The property must be located in California and is only allowed on single family residences and approved condominium projects. No units, manufactured homes or coops.

  Whatever the sales price is, the first must always be 80% loan to value and the second 17% loan to value not to exceed the maximum loan amounts above. Since the first is 80% there is no mortgage insurance. The borrower is required to impound taxes and insurance.

Comments (12)

Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

Now that is a powerful program for the teachers in the state.  I did not know of the program. 

Nov 21, 2010 10:00 AM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Mark

This is a program that is wonderful for the teachers.

Nov 21, 2010 05:32 PM
Will Nesbitt
Nesbitt Realty at Condo Alexandria - Alexandria, VA
Nesbitt Realty is a family-run brokerage.

Our teachers deserve this! It's great to know! Thanks for dropping by my post Tim.

Nov 23, 2010 06:27 PM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Thank you Will for dropping by mine.

Nov 24, 2010 01:55 AM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Tim,

Great information to share with all of us.  Wishing you a wonderful Thanksgiving holiday and continued success in all your endeavors.  A

Nov 24, 2010 02:09 AM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Ron and Alexandra

Thank you for dropping by and have a great holiday.

Nov 24, 2010 03:20 AM
Not a real person
San Diego, CA

With just 36 days left in 2010, Zoey the Cool Cat and I just wanted to stop by and wish you a very Happy Thanksgiving. Hope it’s a great one, with lots of fun and food with family and friends!

Happy Thanksgiving!

Nov 25, 2010 03:40 AM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Have a great Thanksgiving and don't eat too much turkey.

Nov 25, 2010 07:38 AM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

These are great loans, Tim.  I had buyers who used one last year.  Very well explained.

Nov 28, 2010 04:03 AM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Thank you Jane I am glad that you were able to take advantage of the loan.

Nov 28, 2010 06:49 AM
Maureen Bray Portland OR Home Stager ~ Room Solutions Staging
Room Solutions Staging, Portland OR - Portland, OR
"Staging Consultations that Sell Portland Homes"

Tim,

What a great loan program for CA teachers.  Wish that was available to other states too, but it's nice that teachers are been given the opportunity.

Dec 11, 2010 12:16 PM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Maureen

It is truly a fabulous program for the teachers.

Dec 11, 2010 05:05 PM