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.