CalSTRS Home Loan Connection Program

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
Down Payment 3%
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%
2nd Mortgage N/A
Origination Fee Up to 1.00%
Discount Points None
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.
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