California Teachers and Employees

The conservatorship forced upon fannie mae and freddie mac by the U.S. Treasury department has spawned an industry wide  trend of dropping interest rates.  Government loans and Conventional loans alike have experienced similar slides since Monday.

Interest Rates have dropped below 6% in the first time in a very long time - you can check CalSTRS interest rates on their website anytime - Here is a link to the CalSTRS Interest Rates page

One of my favorite features of the CalSTRS 80/17 home purchase program is the one time free float down.  What this means is that after you have locked your interest rate, once you are in escrow, and the interest rates drops as they did this week, you are allowed to reduce the rate at no charge.

This program just keeps getting better and better if you’re a Teacher or Employee at a California public school or community college.  If you would like more information about this program give us a call today at 1-866-667-6724.

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