Program Summary: 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 laon with a competitive rate – and your money works for you since income derived from mortgage payments goes directly into the Teachers’ Retirement Fund.
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 $438,947 – 1st & 2nd combined)
Non Conforming 1st Loan Amount: Up to $617,500 (Up to $650,000 1st & 2nd combined)
Max Loan to Value (LTV) – 1st: 95%
Max Loan to Value (LTV) – 2nd: 5%
Max Combined Loan to Value (CLTV): 100%
Important LTV Note: LTVs must be exactly 95% and 5%
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 5% 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)
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It is my understanding that there is a Retirement Home for teachers in the Santa Barbara area. Please let me know to whom I should write for more information. Thank you.