California Teachers and Employees

Program Summary:  This Purchase Only loan provides for a first mortgage of 80% of the value of the home, and a deferred payment second mortgage of 17%.

Term:  30 Year term on both 1st and 2nd mortgages

CalSTRS Interest Rates:  Check Today’s Rates Here

Conforming Loan Amount:  Up to $417,000 (Up to $505,612 - 1st & 2nd combined)

Non Conforming 1st Loan Amount:  Ups to $536,082 (Up to $650,000 1st & 2nd combined)

Max Loan to Value (LTV) - 1st:  80%

Max Loan to Value (LTV) - 2nd:  17%

Max Combined Loan to Value (CLTV):  97%

Important LTV Note:  LTVs must be exactly 80% and 17%

Loan Purpose:  Purchase ONLY

Eligible Properties:  Single Family Residence, Condominiums, Planned Urban Developments (PUD)

Down Payment:  3%  (1% must be from borrower’s owen funds)

Sources of Closing Costs:  Borrower’s own funds, seller contributions up to 3%, gift from relative, or unsecured grant from approved government agency.

2nd Mortgage:  Deferred payments on the 17% 2nd mortage for the first 5 years.  Interest rate is same as rate on 1st mortgage.  Simple interest is accrued on 2nd mortgage and added to principle balance at the end of the 5 year deferred period.  The new balance is then fully amortized for the remaining 25 years.

Own Other Properties:  Borrower cannot own any other properties and only 1 CalSTRS mortgage at a time.

Minimum Credit Scores:  620 for Loan Amounts up to $400,000 / 680 for Loan Amounts between $401,000 and $650,000 (combined 1st & 2nd)