California Teachers and Employees

Introduction to PorchLight Real Estate Services

I just received this question and thought it was important enough to address it so that everyone could get more information about how this works.

CalSTRS is the California State Teachers Retirement Program providing retirement related benefits to teachers in public schools and Community Colleges in the State of California. Facts about CalSTRS:

• Largest U.S. Teachers Retirement Fund
• 2nd Largest U.S. Public Pension Fund
• CalSTRS assets stands at $164 Billion as of March 31, 2008
• CalSTRS membership stands at 795,000

The CalSTRS Home Loan Program was established in 1984 as a result of legislation that provided CalSTRS with a mortgage-backed security investment opportunity and restructured in July of 2004. It was designed as an additional source of home financing for its members and retirees giving them a great choice of mortage loans with competitive rates.

How this program benefits you: Borrowers can obtain a great loan with a competitive rate - and your money works for you since income derived from mortgage payments goes directly into the Teachers’ Retirement Fund.

Program Highlights

Program Summary: This loan program is available for the Purchase of a Home, Rate and Term Refinance or Cash Out Refinance. This loan provides for a first mortgage of up to 95% of the value of the home (90% in declining markets)

Term: 15 or 30 Year term

CalSTRS Interest Rates: Check Today’s Rates Here

Conforming Loan Amount: Up to $417,000

Non Conforming Loan Amount: $417,001 to $834,000

Max Loan to Value (LTV) - 1st: 95% (90% in declining markets)

Max Combined Loan to Value (CLTV): 95%

Loan Purpose: Purchase, Rate and Term Refinance, Cash Out Refinance

Eligible Properties: Single Family Residence, 2 - 4 Units, Condominiums, Planned Urban Developments (PUD)

Sources of Closing Costs: Borrower’s own funds, seller contributions up to 3%, gift from relative, equity in home.

Own Other Properties: Borrower can own other properties but only 1 CalSTRS mortgage at a time.

Minimum Credit Scores: 620 Minimum Credit Score - NOTE: There are Pricing adjustments based on Loan to Value, Credit Score, Purpose of Loan and Number of Units that will appear as Loan Charges on your Good Faith Estimate.

Because CalSTRS sets all interest rates, these fees can not be included in the rate as other conventional loan programs do. Rate and Term Refinances on SFR, Condo, PUD properties with a Credit Score over 720 have no pricing adjustments up to 95% LTV.

Counties Eligible: Alameda, Amador, Butte, Calaveras, Colusa, Contra Costa, Del Norte, El Dorado, Fresno, Glenn, Humboldt, Imperial, Inyo, Kern, Kings, Lake, Lassen, Los Angeles, Madera, Marin, Mendocino, Merced, Modoc, Mono, Monterey, Napa, Nevada, Orange, Placer, Plumas, Riverside, Sacramento, San Benito, San Bernardino, San Diego, San Francisco, San Joaquin, San Luis Obispo, San Mateo, Santa Clara, Santa Barbara, Santa Clara, Santa Cruz, Shasta, Sierra, Siskiyou, Solano, Sonoma, Stanislaus, Sutter, Tehama, Tulare, Tuolumne, Ventura, Yolo, Yuba

Cities Eligible: Adelanto, Agoura Hills, Alameda, Albany, Alhambra, Aliso Viejo, Alturas, Amador City, American Canyon, Anaheim, Anderson, Angels Camp, Antioch, Apple Valley , Arcadia, Arcata, Arroyo Grande, Artesia, Arvin, Atascadero, Atherton , Atwater, Auburn, Avalon, Avenal, Azusa, Bakersfield, Baldwin Park, Banning, Barstow, Beaumont, Bell Gardens, Bell, Bellflower, Belmont, Belvedere, Benicia, Berkeley, Beverly Hills, Big Bear Lake, Biggs, Bishop, Blue Lake, Blythe, Bradbury, Brawley, Brea, Brentwood, Brisbane, Buellton, Buena Park, Burbank, Burlingame, Calabasas, Calexico, California City, Calimesa, Calipatria, Calistoga, Camarillo, Campbell, Canyon Lake, Capitola, Carlsbad, Carmel-by-the-Sea, Carpinteria, Carson, Cathedral City, Ceres, Cerritos, Chico, Chino Hills, Chino, Chowchilla, Chula Vista, Citrus Heights, City of Commerce, City of Industry, Claremont, Clayton, Clearlake, Cloverdale, Clovis, Coachella, Coalinga, Colfax, Colma , Colton, Colusa, Compton, Concord, Corcoran, Corning, Corona, Coronado, Corte Madera , Costa Mesa, Cotati, Covina, Crescent City, Cudahy, Culver City, Cupertino, Cypress, Daly City, Dana Point, Danville , Davis, Del Mar, Del Rey Oaks, Delano, Desert Hot Springs, Diamond Bar, Dinuba, Dixon, Dorris, Dos Palos, Downey, Duarte, Dublin, Dunsmuir, East Palo Alto, El Cajon, El Centro, El Cerrito, El Monte, El Segundo, Elk Grove, Emeryville, Encinitas, Escalon, Escondido, Etna, Eureka, Exeter, Fairfax , Fairfield, Farmersville, Ferndale, Fillmore, Firebaugh, Folsom, Fontana, Fort Bragg, Fort Jones, Fortuna, Foster City, Fountain Valley, Fowler, Fremont, Fresno, Fullerton, Galt, Garden Grove, Gardena, Gilroy, Glendale, Glendora, Goleta, Gonzales, Grand Terrace, Grass Valley, Greenfield, Gridley, Grover Beach, Guadalupe, Gustine, Half Moon Bay, Hanford, Hawaiian Gardens, Hawthorne, Hayward, Healdsburg, Hemet, Hercules, Hermosa Beach, Hesperia, Hidden Hills, Highland, Hillsborough , Hollister, Holtville, Hughson, Huntington Beach, Huntington Park, Huron, Imperial Beach, Imperial, Indian Wells, Indio, Inglewood, Ione, Irvine, Irwindale, Isleton, Jackson, Kerman, King City, Kingsburg, La Cañada Flintridge, La Habra Heights, La Habra, La Mesa, La Mirada, La Palma, La Puente, La Quinta, La Verne, Lafayette, Laguna Beach, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Elsinore, Lake Forest, Lakeport, Lakewood, Lancaster, Larkspur, Lathrop, Lawndale, Lemon Grove, Lemoore, Lincoln, Lindsay, Live Oak, Livermore, Livingston, Lodi, Loma Linda, Lomita, Lompoc, Long Beach, Loomis , Los Alamitos, Los Altos Hills , Los Altos, Los Angeles, Los Banos, Los Gatos , Loyalton, Lynwood, Madera, Malibu, Mammoth Lakes , Manhattan Beach, Manteca, Maricopa, Marina, Martinez, Marysville, Maywood, McFarland, Mendota, Menifee, Menlo Park, Merced, Mill Valley, Millbrae, Milpitas, Mission Viejo, Modesto, Monrovia, Montague, Montclair, Monte Sereno, Montebello, Monterey Park, Monterey, Moorpark, Moraga , Moreno Valley, Morgan Hill, Morro Bay, Mount Shasta, Mountain View, Murrieta, Napa, National City, Needles, Nevada City, Newark, Newman, Newport Beach, Norco, Norwalk, Novato, Oakdale, Oakland, Oakley, Oceanside, Ojai, Ontario, Orange Cove, Orange, Orinda, Orland, Oroville, Oxnard, Pacific Grove, Pacifica, Palm Desert, Palm Springs, Palmdale, Palo Alto, Palos Verdes Estates, Paradise , Paramount, Parlier, Pasadena, Paso Robles, Patterson, Perris, Petaluma, Pico Rivera, Piedmont, Pinole, Pismo Beach, Pittsburg, Placentia, Placerville, Pleasant Hill, Pleasanton, Plymouth, Point Arena, Pomona, Port Hueneme, Porterville, Portola Valley , Portola, Poway, Rancho Cordova, Rancho Cucamonga, Rancho Mirage, Rancho Palos Verdes, Rancho Santa Margarita, Red Bluff, Redding, Redlands, Redondo Beach, Redwood City, Reedley, Rialto, Richmond, Ridgecrest, Rio Dell, Rio Vista, Ripon, Riverbank, Riverside, Rocklin, Rohnert Park, Rolling Hills Estates, Rolling Hills, Rosemead, Roseville, Ross , Sacramento, Salinas, San Anselmo , San Bernardino, San Bruno, San Carlos, San Clemente, San Diego, San Dimas, San Fernando, San Francisco, San Gabriel, San Jacinto, San Joaquin, San Jose, San Juan Bautista, San Juan Capistrano, San Leandro, San Luis Obispo, San Marcos, San Marino, San Mateo, San Pablo, San Rafael, San Ramon, Sand City, Sanger, Santa Ana, Santa Barbara, Santa Clara, Santa Clarita, Santa Cruz, Santa Fe Springs, Santa Maria, Santa Monica, Santa Paula, Santa Rosa, Santee, Saratoga, Sausalito, Scotts Valley, Seal Beach, Seaside, Sebastopol, Selma, Shafter, Shasta Lake, Sierra Madre, Signal Hill, Simi Valley, Solana Beach, Soledad, Solvang, Sonoma, Sonora, South El Monte, South Gate, South Lake Tahoe, South Pasadena, South San Francisco, St. Helena, Stanton, Stockton, Suisun City, Sunnyvale, Susanville, Sutter Creek, Taft, Tehachapi, Tehama, Temecula, Temple City, Thousand Oaks, Tiburon , Torrance, Tracy, Trinidad, Truckee , Tulare, Tulelake, Turlock, Tustin, Twentynine Palms, Ukiah, Union City, Upland, Vacaville, Vallejo, Ventura, Vernon, Victorville, Villa Park, Visalia, Vista, Walnut Creek, Walnut, Wasco, Waterford, Watsonville, Weed, West Covina, West Hollywood, West Sacramento, Westlake Village, Westminster, Westmorland, Wheatland, Whittier, Williams, Willits, Willows, Windsor , Winters, Woodlake, Woodland, Woodside , Yorba Linda, Yountville , Yreka, Yuba City, Yucaipa, Yucca Valley

Program Highlights

Program Summary

The California Housing Finance Agency offers First Time Home Buyer programs to specifically meet the needs of home buyers in the State of California.  CalHFA offers first mortgages to 95% with a wide variety of down payment assistance options that results in essentially no money out of pocket for down payment and in some cases closing costs.

Program Details

First Mortgage Loan Programs:

• interest only PLUS - 35 year fixed rate mortgage / Interest only for the first 5 years
• 30 Year Fixed - 30 year fixed, fully amortized mortgage
• 40 Year Fixed - 40 year fixed, fully amortized mortgage

Down Payment Assistance Loan Programs:

• CalHFA Housing Assistance Program (CHAP):  Offers a deferred payment down assistance loan up to 2% of the purchase price or appraised value, whichever is less, in CHAP designated areas.
• California Homebuyers Downpayment Assistance Program (CHDAP):  Offers a deferred payment loan up to 3% of the purchase price or appraised value.  May be used for either down payment assistance or closing costs.
• Extra Credit Teacher Home Purchase Program (ECTP):  is designed to make homeownership a possibility for eligible teachers, administrators, classified employees and staff members working in high priority schools in California.

Purchase Price Limits:  Purchase price limits are determined by County and Area - See guidelines here

Income Limits:  Income restrictions are determined by County and number of occupants in home.  See guidelines here

Payments:  Payments on all down payment assistance loans are deferred for the term of the first mortgage.  Repayment is required if first mortgage is either refinanced or home is sold.

Recapture:  Under certain circumstances, there is a recapture feature to CalHFA first mortgages - see guidelines here

Qualifying:  To see if you qualify for the CalHFA Extra Credit Teacher Home buying Program (ECTP) - Click Here to get started.

CalSTRS Interest Rates are set by CalSTRS daily.  There are no “rebates” offered to lenders for passing through higher interest rates as a way to provide low interest loan options to eligible CalSTRS borrowers.  All lenders offering CalSTRS loan programs will offer the same interest rates or it is not a CalSTRS loan.

Locking the Interest Rate will secure guarantee the rate for 45 days at no charge.  A free 15 day extension will be permitted should you not close on the purchase within the 45 day period.

A One Time Free Float Down is available if market conditions improve after you have locked your interest rate.  A float down occurs when you “re-lock” your interest rate at rate lower than your original lock.  You can do this one time only at any time within the first 45 day rate lock period.

Click here to check today’s CalSTRS Interest Rates

Property Changes require new rate lock.

No fee for Cancellations

THIS PROGRAM HAS BEEN TEMPORARILY SUSPENDED - STAY TUNED FOR FURTHER INFORMATION

Program Summary: This Purchase Only loan provides for a first mortgage of 95% of the value of the home, and a deferred payment second mortgage of 5%.

Term: 30 Year term on both 1st and 2nd mortgages

CalSTRS Interest Rates: Check Today’s Rates Here

Conforming Loan Amount: Up to $417,000 (Up to $438,947 - 1st & 2nd combined)

Non Conforming 1st Loan Amount: Up to $617,500 (Up to $650,000 1st & 2nd combined)

Max Loan to Value (LTV) - 1st: 95%

Max Loan to Value (LTV) - 2nd: 5%

Max Combined Loan to Value (CLTV): 100%

Important LTV Note: LTVs must be exactly 95% and 5%

Loan Purpose: Purchase ONLY

Eligible Properties: Single Family Residence, Condominiums, Planned Urban Developments (PUD)

Down Payment: 3% (1% must be from borrower’s owen funds)

Sources of Closing Costs: Borrower’s own funds, seller contributions up to 3%, gift from relative, or unsecured grant from approved government agency.

2nd Mortgage: Deferred payments on the 5% 2nd mortage for the first 5 years. Interest rate is same as rate on 1st mortgage. Simple interest is accrued on 2nd mortgage and added to principle balance at the end of the 5 year deferred period. The new balance is then fully amortized for the remaining 25 years.

Own Other Properties: Borrower cannot own any other properties and only 1 CalSTRS mortgage at a time.

Minimum Credit Scores: 620 for Loan Amounts up to $400,000 / 680 for Loan Amounts between $401,000 and $650,000 (combined 1st & 2nd)

Program Summary:  This Purchase Only loan provides for a first mortgage of 80% of the value of the home, and a deferred payment second mortgage of 17%.

Term:  30 Year term on both 1st and 2nd mortgages

CalSTRS Interest Rates:  Check Today’s Rates Here

Conforming Loan Amount:  Up to $417,000 (Up to $505,612 - 1st & 2nd combined)

Non Conforming 1st Loan Amount:  Ups to $536,082 (Up to $650,000 1st & 2nd combined)

Max Loan to Value (LTV) - 1st:  80%

Max Loan to Value (LTV) - 2nd:  17%

Max Combined Loan to Value (CLTV):  97%

Important LTV Note:  LTVs must be exactly 80% and 17%

Loan Purpose:  Purchase ONLY

Eligible Properties:  Single Family Residence, Condominiums, Planned Urban Developments (PUD)

Down Payment:  3%  (1% must be from borrower’s owen funds)

Sources of Closing Costs:  Borrower’s own funds, seller contributions up to 3%, gift from relative, or unsecured grant from approved government agency.

2nd Mortgage:  Deferred payments on the 17% 2nd mortage for the first 5 years.  Interest rate is same as rate on 1st mortgage.  Simple interest is accrued on 2nd mortgage and added to principle balance at the end of the 5 year deferred period.  The new balance is then fully amortized for the remaining 25 years.

Own Other Properties:  Borrower cannot own any other properties and only 1 CalSTRS mortgage at a time.

Minimum Credit Scores:  620 for Loan Amounts up to $400,000 / 680 for Loan Amounts between $401,000 and $650,000 (combined 1st & 2nd)

Program Highlights

Eligible Buyers:  All employees of a California public school district or California Community College, and/or a member of the California State Teachers’ Retirement System (STRS).

Geographic Restrictions:  Properties in the State of California ONLY

Occupancy:  You must live in the home as your Primary Residence

First Time Home Buyer:   You do not have to be a First Time Home Buyer to qualify for a CalSTRS loan.  CalSTRS provides purchase, refinance and cash out refinance loans.

Income Limits:  There are No Income Limits to qualify for a CalSTRS home loan.

Sales Price Limits:  There are No Sales Price Limits.  See individual loan programs for loan limits.

Available Loan Programs:  CalSTRS offers Home Loans to Purchase a New Home, Refinance to lower rate and payment or Refinance to take Cash Out.