In October, 2011 CalSTRS suspended it’s last available home purchase loan program that offered a 80% first mortgage, and a 17% second mortgage to homebuyers that avoided the need for mortgage insurance.
The CalSTRS 80/17 was a one of a kind loan that has been sorely missed.
After almost 2 years, CalSTRS announced that it has found a new master servicer, and will once again offer a home loan program.
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Who is Eligible for a CalSTRS loan?
Any employee of a California public school, school district, community college, or member of the CalSTRS retirement system is eligible to take advantage of this loan program.
At this point, we can only go by what the guidelines were before the program was suspended, and if nothing changes, this loan program will be available for the purchase of a one unit, primary residence only.
Past guidelines do not require that you be a first time homebuyer, but you could not own any other properties at the time of the purchase.
Is CalSTRS Bringing Back the 80/17 Loan?
We are unsure what programs will be available, other than what was announced in September last year regarding proposed changes to the Home Loan Program (HLP).
On a completely personal note, I would not be surprised if we saw several loan options available, including a refinance loan for eligible homeowners.
When Will it Be Available?
expected to take up to six months to complete before resuming loan originations
According to a press release published on the CalSTRS website on March 28th, 2013, the new servicer, Mountain West Financial, is still going through contract negotiations a could take up to 6 months before resuming loan originations. Availability of the new CalSTRS home loan program is expected by September, 2013
How Do I Apply for a CalSTRS Home Loan?
You can only get a CalSTRS home loan through a lender that is authorized to offer the program. The servicer of the CalSTRS loan, Mountain West Financial, will approve lenders to offer the program.
Broadview Mortgage is already approved to offer the new CalSTRS Home Loan Program and we will continue to report on it’s progress as well as offer live online webinars as details and more concrete timelines are released.