California Teachers and Employees

Ok, it’s come to the point where I can no longer brush this off as a coincidence.  The conversation that I am having over and over again goes something like this…..

“Hi Scott, I am in the process of buying a home and was qualified for a Teacher loan (Extra Credit Teacher Program or CalSTRS 80/17) and my loan officer just told me that the underwriting guidelines have changed and I no longer qualify for this program.

I was doing some research on the internet and ran across your blog.  Have there been any changes?  I can’t seem to find anything to back up what i’m being told by my loan officer.  Please help!”

This is not an actual conversation ver batim but I assure you it’s really, really close!

Here’s what the “other guys” don’t want to tell you - They don’t like to offer these loans because…ok, brace yourself…….drum roll please……..They don’t make a lot of money giving you one of these special loans.

Can you believe it?  I know you’re shocked that a loan officer or lender would actually ignore the best interest of their client just to make more money for themselves……Come on Scott, that doesn’t happen.

I know I sound a little irritated and even bordering on hostile as I write this and I guess it’s because I am.

I sincerely hope that you have run across this post because you didn’t take “no” for an answer.  I want you to know that although there are often changes in loan qualification guidelines, there have been relatively few changes in these programs.

The reason why there is little information out there about these programs is that lenders and loan officers are not eager to work for a reasonable wage and help a segment of our community that quite frankley does not get enough credit for the contributions you make to society.

Ok, I feel a little better now that I’ve gotten this off my chest.  I’ve put together a bunch of resources for you and we hold free web classes regularly to educate teachers, public employees and first time home buyers about these special programs.

Click Here for these valuable resources

There are links all over this site to contact us for more information or you can call my cell phone anytime.  I can be reached at 714-336-8286.  The office number is 866-667-6724 and anyone here will give you an honest answer and look out for your best interest.

Every day seems to bring new challenges for new home buyers looking to purchase homes in the State of California.  As home prices drop to seemingly jaw dropping levels California Teachers and Public Employees are making up a large percentage of first time home buyers entering this market.

If you do not belong to special organization like CalSTRS or CalPERS there are still programs available to purchase with little or no money down, but not nearly the options available to members of these organizations.

CalSTRS made a startling announcement earlier this week that it have successfully defended an important underwriting guideline with Fannie Mae that has resulted in many more California Teachers and Employees being able to qualify for the 80/17 loan program.

There is no program available anywhere in the State or Country that has the benefits of this loan program.  No mortgage insurance, low interest rates, low fees, deferred payments on down payment for 5 years - Inquire here for more information on this program.

CalHFA still offers great programs to first time home buyers, and specifically to Teachers working in high priority (title 1) schools in the State of California.  The Extra Credit Teacher program provides a 3% silent second mortgage with no payments due for the life of the first loan.  Teachers that qualify for this loan program may have to come in with as much as 2% down payment, but as little as nothing down with the use of other down payment assistance programs available through CalHFA and it’s affiliate DPA program.  Inquire here for more information on this program.

CalPERS offers a loan program that allows you to borrow up to 95% loan to value plus take a personal loan of up to $18,000 or half of your CalPERS value to cover the additional 5%.  The result is that you can borrow up to 100% of the purchase price.  Inquire here for more information on this program.

For more information on any of these programs feel free to call us at 866-667-6724 or Inquire here for more information.  To find out if you qualify for a low or no down payment home loan you can also complete this simple, online loan application and get approved today!

In such a volatile market as we’re in right now, on a day when conventional interest rates went up .125%, The California Housing Finance Agency in an unprecedented announcement reduced interest rates across the board.

Rate Reductions are as follows:

30 Year Fixed

• Moderate Income Areas Reduced .125% to 6.75%
• Low Income Areas Reduced .25% to 6.5%

35 Year interest only PLUS

• Loan Amounts of $450,000 or Less Reduced .125% to 7%
• Loan Amounts in excess of $450,000 Reduced .25% to 7.375%

40 Year Fixed Mortgage

• Reduced .125% to 7%

Extra Credit Teacher Program

• Reduced .25% to 6.25%
• ECTP Down Payment Assitance - 5.25% (interest waived after 3 years)

With the CalHFA Community Stabilization Home Loan Program standing at 5.5% for a 30 Year fixed rate with ZERO down payment required (100% One loan financing with reduced mortgage insurance), CalHFA remains as one of the few remaining reliable and always available first time home buyer programs that allow over 90% loan to value.

Depending on your qualification, CalHFA has loan programs that allow for 0%, 1% & 2% down payment making this a very realistic alternative to the 3.5% down payment requirement (as of October 1st)

For additional information about these CalHFA loan programs feel free to contact me at Scott@myporchlight.com or you may call me on my cell phone anytime at 714-336-8286.

The major mortgage insurance companies announced on Friday, August 8th, 2008 that they will no longer offer mortgage insurance on any loans that exceed a total of 90% loan to value in California, Arizona, Nevada and Florida.

The only options left for “low down payment” purchase loans in California are FHA, CalHFA Extra Credit Teacher Program and the CalSTRS 80/17 home purchase loan.

It’s really a no brainer once you compare these loans side by side:

CalSTRS compared to CalHFA

• You do not have to be a first time home buyer with CalSTRS
• There are no income limits with CalSTRS
• CalHFA currently has an interest of 6.25%, CalSTRS 6.625%
• CalSTRS does not require Mortgage Insurance - CalHFA does

CalSTRS compared to FHA

• No mortgage insurance with a CalSTRS loan
• No upfront PMI with CalSTRS
• Both require only 3% down payment

This, in my opinion continues to be the best loan option available…PERIOD.

Did you know that the only requirement is that you have a pay stub from a Calfornia Public School or Community College?  You do not even have to be a member of CalSTRS.

I am holding California Teacher Home Buying Workshops for any schools or organizations in California.  I will be in San Deigo next week.  If you would like to hold a workshop at your school or other forum, feel free to contact me for details.

You may reach me on my cell phone at 714-336-8286 or email me at Scott@MyPorchLight.com

The Extra Credit Teacher Program provides for a 3% loan that can be used for down payment assistance for California Teachers that work in high priority schools.  The interest on this loan is waived after 3 years of working in a high priority school.  There are no payments due on this loan until you either refinance, sell, or pay off the first mortgage.

A high priority school is one that is defined as having an Academic Performance Index (API) ranking of 5 or below.  To find out if your school qualifies for this program - Search API Ranking Here

Who Qualifies for the CalHFA Extra Credit Teacher Program

For Teachers: (Credential held must be either a Preliminary or  Full Credential.  Intern Credentials and Emergency Permits are not eligible under the program.)

• Single Subject Teaching Credential
• Multiple Subject Teaching Credential
• Specialist Instruction Credential in Special Education
• Education Specialist Instruction Credential
• Standard Elementary Teaching Credential
• Standard Secondary Teaching Credential
• Standard Early Childhood Education Teaching Credential
• Standard Restricted Special Education Teaching Credential
• General Kindergarten-Primary Teaching Credential
• General Elementary Teaching Credential
• General Junior High Teaching Credential
• General Secondary Teaching Credential
• Special Secondary Teaching Credential in Art
• Special Credential for Teaching Exceptional Children
• Special Secondary Teaching Credential in Business Ed
• Special Secondary Credential for Teaching the Blind
• Special Secondary Teaching Credential in Homemaking
• Special Secondary Teaching Credential in Industrial Arts
• Special Secondary Credential for Teaching Lip Reading
• Special Secondary Teaching Credential in Music
• Special Secondary Limited Teaching Credential in Music
• Special Secondary Teaching Credential Limited in Agriculture
• Special Secondary Credential for Teaching the Partially Sighted Child
• Special Secondary Teaching Credential in Physical Education
• Special Secondary Speech Arts
• Special Secondary Teaching Credential in Correction of Speech Defects
• Special Secondary Credential for Teaching the Mentally Retarded

For Administrators :

• Administrative Services Credential
• General Secondary School Administration Credential
• Administrative Services Credential (Examination)
• General Secondary School Supervision Credential
• Standard Supervision Credential
• General Administration Credential
• Standard Administration Credential
• General Supervision Credential
• General Elementary School Administration Credential
• The Supervision Credential
• General Elementary School Supervision Credential
• General School Principal or Supervisor Credential

For Staff Members:

• School Nurse Credential
• Clinical or Rehabilitation Service Credential
• Pupil Personnel Services Credential - (e.g. School Counseling, School Social Work, School Psychology and Child Welfare and Attendance)
• Library Media Teacher Service Credential
• Designated Subjects Vocational Education Teaching Credential

There may be other qualifications, please feel free to Get More Info here or call us at 866-667-6724.

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.