California Down Payment Assistance

Every day seems to bring new challenges for new home buyers looking to purchase homes in the State of California.  As home prices drop to seemingly jaw dropping levels California Teachers and Public Employees are making up a large percentage of first time home buyers entering this market.

If you do not belong to special organization like CalSTRS or CalPERS there are still programs available to purchase with little or no money down, but not nearly the options available to members of these organizations.

CalSTRS made a startling announcement earlier this week that it have successfully defended an important underwriting guideline with Fannie Mae that has resulted in many more California Teachers and Employees being able to qualify for the 80/17 loan program.

There is no program available anywhere in the State or Country that has the benefits of this loan program.  No mortgage insurance, low interest rates, low fees, deferred payments on down payment for 5 years - Inquire here for more information on this program.

CalHFA still offers great programs to first time home buyers, and specifically to Teachers working in high priority (title 1) schools in the State of California.  The Extra Credit Teacher program provides a 3% silent second mortgage with no payments due for the life of the first loan.  Teachers that qualify for this loan program may have to come in with as much as 2% down payment, but as little as nothing down with the use of other down payment assistance programs available through CalHFA and it’s affiliate DPA program.  Inquire here for more information on this program.

CalPERS offers a loan program that allows you to borrow up to 95% loan to value plus take a personal loan of up to $18,000 or half of your CalPERS value to cover the additional 5%.  The result is that you can borrow up to 100% of the purchase price.  Inquire here for more information on this program.

For more information on any of these programs feel free to call us at 866-667-6724 or Inquire here for more information.  To find out if you qualify for a low or no down payment home loan you can also complete this simple, online loan application and get approved today!

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 FHA 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.

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)

Counties Eligible: Alameda, Amador, Butte, Calaveras, Colusa, Contra Costa, Del Norte, El Dorado, Fresno, Glenn, Humboldt, Imperial, Inyo, Kern, Kings, Lake, Lassen, Los Angeles, Madera, Marin, Mendocino, Merced, Modoc, Mono, Monterey, Napa, Nevada, Orange, Placer, Plumas, Riverside, Sacramento, San Benito, San Bernardino, San Diego, San Francisco, San Joaquin, San Luis Obispo, San Mateo, Santa Clara, Santa Barbara, Santa Clara, Santa Cruz, Shasta, Sierra, Siskiyou, Solano, Sonoma, Stanislaus, Sutter, Tehama, Tulare, Tuolumne, Ventura, Yolo, Yuba

Cities Eligible: Adelanto, Agoura Hills, Alameda, Albany, Alhambra, Aliso Viejo, Alturas, Amador City, American Canyon, Anaheim, Anderson, Angels Camp, Antioch, Apple Valley , Arcadia, Arcata, Arroyo Grande, Artesia, Arvin, Atascadero, Atherton , Atwater, Auburn, Avalon, Avenal, Azusa, Bakersfield, Baldwin Park, Banning, Barstow, Beaumont, Bell Gardens, Bell, Bellflower, Belmont, Belvedere, Benicia, Berkeley, Beverly Hills, Big Bear Lake, Biggs, Bishop, Blue Lake, Blythe, Bradbury, Brawley, Brea, Brentwood, Brisbane, Buellton, Buena Park, Burbank, Burlingame, Calabasas, Calexico, California City, Calimesa, Calipatria, Calistoga, Camarillo, Campbell, Canyon Lake, Capitola, Carlsbad, Carmel-by-the-Sea, Carpinteria, Carson, Cathedral City, Ceres, Cerritos, Chico, Chino Hills, Chino, Chowchilla, Chula Vista, Citrus Heights, City of Commerce, City of Industry, Claremont, Clayton, Clearlake, Cloverdale, Clovis, Coachella, Coalinga, Colfax, Colma , Colton, Colusa, Compton, Concord, Corcoran, Corning, Corona, Coronado, Corte Madera , Costa Mesa, Cotati, Covina, Crescent City, Cudahy, Culver City, Cupertino, Cypress, Daly City, Dana Point, Danville , Davis, Del Mar, Del Rey Oaks, Delano, Desert Hot Springs, Diamond Bar, Dinuba, Dixon, Dorris, Dos Palos, Downey, Duarte, Dublin, Dunsmuir, East Palo Alto, El Cajon, El Centro, El Cerrito, El Monte, El Segundo, Elk Grove, Emeryville, Encinitas, Escalon, Escondido, Etna, Eureka, Exeter, Fairfax , Fairfield, Farmersville, Ferndale, Fillmore, Firebaugh, Folsom, Fontana, Fort Bragg, Fort Jones, Fortuna, Foster City, Fountain Valley, Fowler, Fremont, Fresno, Fullerton, Galt, Garden Grove, Gardena, Gilroy, Glendale, Glendora, Goleta, Gonzales, Grand Terrace, Grass Valley, Greenfield, Gridley, Grover Beach, Guadalupe, Gustine, Half Moon Bay, Hanford, Hawaiian Gardens, Hawthorne, Hayward, Healdsburg, Hemet, Hercules, Hermosa Beach, Hesperia, Hidden Hills, Highland, Hillsborough , Hollister, Holtville, Hughson, Huntington Beach, Huntington Park, Huron, Imperial Beach, Imperial, Indian Wells, Indio, Inglewood, Ione, Irvine, Irwindale, Isleton, Jackson, Kerman, King City, Kingsburg, La Cañada Flintridge, La Habra Heights, La Habra, La Mesa, La Mirada, La Palma, La Puente, La Quinta, La Verne, Lafayette, Laguna Beach, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Elsinore, Lake Forest, Lakeport, Lakewood, Lancaster, Larkspur, Lathrop, Lawndale, Lemon Grove, Lemoore, Lincoln, Lindsay, Live Oak, Livermore, Livingston, Lodi, Loma Linda, Lomita, Lompoc, Long Beach, Loomis , Los Alamitos, Los Altos Hills , Los Altos, Los Angeles, Los Banos, Los Gatos , Loyalton, Lynwood, Madera, Malibu, Mammoth Lakes , Manhattan Beach, Manteca, Maricopa, Marina, Martinez, Marysville, Maywood, McFarland, Mendota, Menifee, Menlo Park, Merced, Mill Valley, Millbrae, Milpitas, Mission Viejo, Modesto, Monrovia, Montague, Montclair, Monte Sereno, Montebello, Monterey Park, Monterey, Moorpark, Moraga , Moreno Valley, Morgan Hill, Morro Bay, Mount Shasta, Mountain View, Murrieta, Napa, National City, Needles, Nevada City, Newark, Newman, Newport Beach, Norco, Norwalk, Novato, Oakdale, Oakland, Oakley, Oceanside, Ojai, Ontario, Orange Cove, Orange, Orinda, Orland, Oroville, Oxnard, Pacific Grove, Pacifica, Palm Desert, Palm Springs, Palmdale, Palo Alto, Palos Verdes Estates, Paradise , Paramount, Parlier, Pasadena, Paso Robles, Patterson, Perris, Petaluma, Pico Rivera, Piedmont, Pinole, Pismo Beach, Pittsburg, Placentia, Placerville, Pleasant Hill, Pleasanton, Plymouth, Point Arena, Pomona, Port Hueneme, Porterville, Portola Valley , Portola, Poway, Rancho Cordova, Rancho Cucamonga, Rancho Mirage, Rancho Palos Verdes, Rancho Santa Margarita, Red Bluff, Redding, Redlands, Redondo Beach, Redwood City, Reedley, Rialto, Richmond, Ridgecrest, Rio Dell, Rio Vista, Ripon, Riverbank, Riverside, Rocklin, Rohnert Park, Rolling Hills Estates, Rolling Hills, Rosemead, Roseville, Ross , Sacramento, Salinas, San Anselmo , San Bernardino, San Bruno, San Carlos, San Clemente, San Diego, San Dimas, San Fernando, San Francisco, San Gabriel, San Jacinto, San Joaquin, San Jose, San Juan Bautista, San Juan Capistrano, San Leandro, San Luis Obispo, San Marcos, San Marino, San Mateo, San Pablo, San Rafael, San Ramon, Sand City, Sanger, Santa Ana, Santa Barbara, Santa Clara, Santa Clarita, Santa Cruz, Santa Fe Springs, Santa Maria, Santa Monica, Santa Paula, Santa Rosa, Santee, Saratoga, Sausalito, Scotts Valley, Seal Beach, Seaside, Sebastopol, Selma, Shafter, Shasta Lake, Sierra Madre, Signal Hill, Simi Valley, Solana Beach, Soledad, Solvang, Sonoma, Sonora, South El Monte, South Gate, South Lake Tahoe, South Pasadena, South San Francisco, St. Helena, Stanton, Stockton, Suisun City, Sunnyvale, Susanville, Sutter Creek, Taft, Tehachapi, Tehama, Temecula, Temple City, Thousand Oaks, Tiburon , Torrance, Tracy, Trinidad, Truckee , Tulare, Tulelake, Turlock, Tustin, Twentynine Palms, Ukiah, Union City, Upland, Vacaville, Vallejo, Ventura, Vernon, Victorville, Villa Park, Visalia, Vista, Walnut Creek, Walnut, Wasco, Waterford, Watsonville, Weed, West Covina, West Hollywood, West Sacramento, Westlake Village, Westminster, Westmorland, Wheatland, Whittier, Williams, Willits, Willows, Windsor , Winters, Woodlake, Woodland, Woodside , Yorba Linda, Yountville , Yreka, Yuba City, Yucaipa, Yucca Valley

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)

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.

 Program Highlights

Program Description

Thanks to The Nehemiah Program ^®, more than 250,000 individuals and families now own homes.

Let us help you achieve the American dream:

• Gift funds up to 6% of the final contract sales towards your downpayment and/or closing costs
• Gift funds for both first time and repeat homebuyers
  (Nehemiah charges a nominal processing fee that may be paid by the seller, homebuyer, or lender.)
• Gift funds for both new construction and resale homes
• No repayment of gift money
• No income or asset limits
• No geographical restrictions