California Down Payment Assistance

Program Highlights 

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:  15 or 30 Year term

CalSTRS Interest Rates:  Check Today’s Rates Here

Conforming Loan Amount:  Up to $417,000

Non Conforming Loan Amount:  $417,001 to $834,000

Max Loan to Value (LTV) - 1st:  95% (90% in declining markets)

Max Combined Loan to Value (CLTV):  95%

Loan Purpose:  Purchase, Rate and Term Refinance, Cash Out Refinance

Eligible Properties:  Single Family Residence, 2 - 4 Units, Condominiums, Planned Urban Developments (PUD)

Sources of Closing Costs:  Borrower’s own funds, seller contributions up to 3%, gift from relative, equity in home.

Own Other Properties:  Borrower can own other properties but only 1 CalSTRS mortgage at a time.

Minimum Credit Scores:  620 Minimum Credit Score - NOTE:  There are Pricing adjustments based on Loan to Value, Credit Score, Purpose of Loan and Number of Units that will appear as Loan Charges on your Good Faith Estimate. 

Because CalSTRS sets all interest rates, these fees can not be included in the rate as other conventional loan programs do.  Rate and Term Refinances on SFR, Condo, PUD properties with a Credit Score over 720 have no pricing adjustments up to 95% LTV.