UPDATE September 2013:
CalSTRS released a revised proposal for their Home Loan Connection program on September 17, 2013.
We have confirmed that CalSTRS has narrowed down several options for the master servicer for this program. It is expected that a vote will take place to make a final decision on the master servicer for the CalSTRS Home Loan Connection program by the end of January 2013.
Following are the details of program that are expected to be available first quarter of 2013.
|Home Buyer Focus||Employees of a California public school district, community college, member of CalSTRS or CalSTRS employees|
|Eligible Properties||Owner-occupied single family residence (1 unit only). Purchase only, no refinance. Primary residence only|
|Term||30 Year Fixed (1st mortgage only)|
|Loan Amount||Generally up to $417,000. $625,00 for FHFA designated high-cost areas|
|Loan to Value||97%|
|Origination Fee||Up to 1.00%|
|Interest Rates||Fixed interest rate. Set daily by CalSTRS|
|Rate Lock||45 days, one free float down|
|Minimum FICO||To be determined. Proposed is 680, 720 for Condos|
|Mortgage Insurance Requirement||18% coverage required. Negotiating a discount with insurance providers will likely affect the minium FICO offered. The proposed rate is reduced.|
|Income Limits||Up to 140% of Average Median Income, unless property is in an “underserved” location.|