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.

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.

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.