California Teachers and Employees

The Faculty & Staff Homebuyer Program (FSHP) is a unique partnership between the City of San Jose, San Jose State University, and Spartan Shops. The goal of the program is to recruit and retain SJSU faculty and staff members to provide a quality education and experience for SJSU students and the surrounding community.” The FSHP offers a deferred-payment loan of up to $60,000 for permanent faculty and staff SJSU. Click here to download a complete Program Handbook.

Eligible Applicants

Income eligible full time permanent faculty & staff at San Jose State University (SJSU).

Program Criteria

• The FHP is NO longer limited to newly hired faculty members.
• Cannot own a home as a primary residence.
• Have a gross income that does not exceed 120% of median income for Santa Clara County, adjusted for family size. Please refer to the Santa Clara County Eligibility Criteria sheet for the eligible income levels.
• Sign up and complete a required first-time homebuyer education class. Interested homebuyers should complete a pre-purchase homebuyer education class through Neighborhood Housing Services Silicon Valley (NHSSV). Please call NHSSV at 408.279.2600 to schedule the workshop. Be prepared to provide the City and your lender with a copy of the Certificate of Completion
• Have an acceptable credit history (this also applies to co-borrowers) and a minimum credit score of 600.

Eligible Properties

Owner occupied, single-family homes, townhomes, and condominiums located within the City of San Jose municipal boundaries. The maximum home purchase price is $732,000. In addition, your total monthly housing cost cannot exceed the “Affordable Housing Cost” limit as shown on the Eligibility Criteria sheet. Total monthly housing expenses include:

• loan principal and interest payment
• property taxes
• insurance
• homeowner association dues
• utilities (other than phone)
• maintenance and repair

Loan Limits

The maximum FSHP loan amount is $60,000. The Housing Department may approve a lower amount, based on your housing-to-income ratio and the amount of liquid assets that will be available after the close of escrow

Loan Terms

The FSHP loan is due and payable in 45 years or upon transfer of the title.

Affordability Restrictions

The property will be subject to a 45-year affordability restriction. The restriction requires either:

1. The property be sold only to an income-qualified household at an affordable price, or
2. The City, Spartan Shops, and the borrower share any new increase in equity that accrues between the date of the original purchase and the date of sale. If the borrower prepays the FSHP loan and remains the homeowner, the affordability restriction will remain in effect.

For more information about this loan program you may either contact the city of San Jose or complete this simple online form.

If you are an employee or a California Public School or Community College you should also consider attending this no-cost on-line class - A Complete Guide to the CalSTRS 80/17 Home Purchase Program

The CalSTRS 80/17 home purchase loan is hands down the best loan program out there if you are an employed by or teach at any California public school or community college.

If you have already attended one of our on-line classes then you know that this loan program simply does not have enough lenders that are raving fans.  My suspicion is that because CalSTRS sets the Rates and Fees for these loan programs, many lenders seem to have the attitude that it’s not worth their time to offer the CalSTRS 80/17.

We are home ownership experts specializing in California Teachers, Public employees and First Time home buyers.  As a result of our on-line classes about the CalSTRS 80/17 we get to talk to a lot of home buyers that never knew this program existed.

Working with a lender that specializes in these loan programs is the very best way to make sure you don’t get caught by surprise during the process.  These loans are not complicated but they are significantly different in the way they are structured.

The last thing you want is to let a lender “experiment” with your family as they try to learn about how this loan works.  I am confident that there are many other lenders out there that have an expertise in this loan program, just make sure that you’re working with one.

The closing costs on a CalSTRS 80/17 are different from an FHA loan due to the fact that CalSTRS does not allow the lender to “roll in” closing costs into the interest rate.  You are guaranteed by CalSTRS that the lender can not manipulate your interest rate in order for them to make more money.

The good news is that you always have full disclosure about what the rates are - the bad news is, the closing costs associated with a high loan to value loan trickle down to the bottom line of your good faith estimate.  These fees are by no means exorbitant, especially when compared to an FHA loan and the Mortgage Insurance Premium (MIP) that is due both upfront and monthly.

Beware of bait and switch tactics that try to push you toward a FHA loan.  This is becoming more and more common as more eligible borrowers are asking about the CalSTRS 80/17.

The “bait and switch” usually goes something like this:

• You are pre-approved for the CalSTRS 80/17 with a lender
• About two weeks into the process you are informed that the underwriting guidelines changed
• An FHA loan is presented as the solution to this challenge

What you need to know about a CalSTRS 80/17 is that the approval is automated and instant.  If you have a loan approval and the rate has been locked, the underwriting guidelines can not be changed retroactively.

Get a second opinion on the GFE if you are even remotely concerned about your lender’s expertise in this program.  It’s not worth the losing your deposit and possibly your dream home because the bank is trying to make a few extra bucks off you.  Buyer beware always.

I’m not saying take my word for it either.  But if i can help to educate you about the process and empower you with the knowledge of how these loans work, then there’s a possiblility that I can help one more family move confidently forward toward the American dream of homeownership….and I call that a good day.

If you have any questions about the CalSTRS loan program, feel free to contact us at 1-866-667-6724 or you can get more info here.

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.