CalSTRS 80/17 Home Purchase Loan – 3% Down Payment
Posted on 10. May, 2008 by Scott Schang in Uncategorized
The CalSTRS 80/17 home purchase loan is available to all employees of California public schools, community colleges and school districts.
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)
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3 Responses to “CalSTRS 80/17 Home Purchase Loan – 3% Down Payment”
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What happens if I sell the home in the first 5 years? also, is there a $9,000 rebate I would receive after closing?
Hi Sandee,
Nothing happens if you sell in the first 5 years. There are no pre-payment penalties tied to this loan program. You may be referring to the $8,000 federal tax credit, and Yes, you may be eligible if you meet the criteria for that program and purchase on or before November 30th, 2009
Hi Sandee,
Nothing would happen if you sell in the first 5 years, there are no pre-payment penalties associated with these loans. The answer to your other question is YES if you meet the eligibility requirements to qualify for the tax credit. The total federal credit is $8,000 and you must purchase on or before November 30th, 2009. Click on the Homebuyer Credit for more information about this and the $10,000 State tax credit.