CalSTRS Loan Program
I have the solution for California's Teachers. The CalSTRS Home Loan Program offers affordable 15 and 30 year fixed mortgages to California Teachers like you.
How much can I borrow?
Depending on the loan program, CalSTRS maximum loan amounts vary from $417,000 to $650,000. Please contact me for details on each loan program.
What will be the interest rate?
Interest rates change daily and therefore are subject to change. However, once your loan closes, you can count on your interest rate being fixed for the entire life of the loan. Please feel free to contact me for a free interest rate quotation.
Are there any restrictions on a CalSTRS Home Loan?
Yes, some of the restrictions are that the borrowers must be a vested participant in the STRS Retirement Program.
Property must be a primary residence as borrower may not own anyother properties.
Home must be located in California
Borrower must have 2 months reserves at the time of closing
No First Time Home Buyer restrictions
My CalSTRS Home Loan has a deferred 2nd. How does that work?
The CalSTRS Home Loan has 2 notes and 2 Deeds of Trust. The 2nd mortgage is silent for 5 years and thus no payment is required on the 2nd for the first 5 years. On year six, monthly payments will be due ammortized over 25 years and paid on a monthly basis until the loan is paid in full.
Can I make payment on my silent, deferred loan?
Yes you can. Although you are not obligated to make any payments on the second loan until the 6th year, you are more than welcome to as you so desire.
Is there a down payment required for this program?
Yes there is. A total of 3% of the purchase price is required for down payment. 2% of this down payment can come in the form of a gift from family but 1% must come from the borrowers own funds.
What kind of loans are offered through CalSTRS?
The CalSTRS Program offers an 80% Conventional 1st mortgage, and 17% 2nd mortgage. Therefore, CalSTRS loans have no Private Mortage Insurance (PMI). Both loan programs are fixed for the entire term of the loan and CalSTRS loans have no pre-payment penalty.
Property must be a primary residence as borrower may not own anyother properties.
Home must be located in California
Borrower must have 2 months reserves at the time of closing
No First Time Home Buyer restrictions
My CalSTRS Home Loan has a deferred 2nd. How does that work?
The CalSTRS Home Loan has 2 notes and 2 Deeds of Trust. The 2nd mortgage is silent for 5 years and thus no payment is required on the 2nd for the first 5 years. On year six, monthly payments will be due ammortized over 25 years and paid on a monthly basis until the loan is paid in full.
Can I make payment on my silent, deferred loan?
Yes you can. Although you are not obligated to make any payments on the second loan until the 6th year, you are more than welcome to as you so desire.
Is there a down payment required for this program?
Yes there is. A total of 3% of the purchase price is required for down payment. 2% of this down payment can come in the form of a gift from family but 1% must come from the borrowers own funds.
What kind of loans are offered through CalSTRS?
The CalSTRS Program offers an 80% Conventional 1st mortgage, and 17% 2nd mortgage. Therefore, CalSTRS loans have no Private Mortage Insurance (PMI). Both loan programs are fixed for the entire term of the loan and CalSTRS loans have no pre-payment penalty.
|
Loan Size
|
LTV 1st
Mortgage
|
LTV 2nd
Mortgage
|
Max Loan Amount for 1st
|
Max Loan Amount for 2nd
|
Max Combined Loan Amount
|
Max
Purchase Price
|
|
Conforming
|
80%
|
17%
|
$417,000
|
$88,612
|
$505,612
|
$521,250
|
|
Non
Conforming
|
80%
|
17%
|
$536,082
|
$113,918
|
$650,000
|
$670,103
|
