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