Special home loan programs for educators


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Special home loan programs for educators

  1. 1. Special Home Loan Programs <br />Get Educated<br />and <br />Be Empowered<br />Your class will begin in a moment<br />Thank you for your patience<br />For Education Professionals<br />
  2. 2. You are being empowered by<br />Broadview Mortgage - Katella<br />www.HomeownershipUniversity.com<br />Cell/Text: 714-336-8286<br />Office: 866-667-6724<br />Email: CalSTRS@BroadviewMortgageCorp.com<br />Thank you for attending<br />
  3. 3. Got <br />Questions?<br />Get<br />Answers<br />
  4. 4. What you will learn in this Class<br />Special Loan Programs<br />CalSTRS 80/17 home purchase loan<br />Community Access purchase loan<br />Qualifying guidelines<br />Home buyer qualifications<br />Property qualifications<br />Your class will start in a moment<br />
  5. 5. What you will learn in this Class<br />Red flags and Misinformation<br />How to avoid misinformation<br />How to identify bait and switch<br />The Next Step<br />Hiring the best team to help you buy<br />What you need to get pre-approved<br />Your class will start in a moment<br />
  6. 6. CalSTRS 80/17 Purchase Loan<br />California State Teacher’s Retirement System<br />CalSTRS is NOT a lender and does not offer loans<br />CalSTRS established qualifying guidelines<br />CalSTRS approved lenders to offer loan program<br />CalSTRS will purchase closed loans that meet guidelines<br />Payments go back into CalSTRS pension fund <br />You do not have to be a member of CalSTRS<br />
  7. 7. CalSTRS 80/17 Purchase Loan<br />Who is Eligible for a CalSTRS 80/17<br />Employee of California public school / community college<br />Can work in any capacity<br />Can work in school district<br />Pay check stub from public school system<br />If you are eligible for CalSTRS pension benefits<br />Provide certificate of eligibility<br />Do not have to be currently employed<br />Any eligible borrower makes family eligible<br />
  8. 8. CalSTRS 80/17 Purchase Loan<br />Why CalSTRS 80/17 is better than FHA<br />Lower Down Payment than FHA<br />3.5% minimum for FHA<br />3% required for CalSTRS<br />Interest Rates as compared to FHA<br />Set by CalSTRS – Cannot be manipulated by lenders<br />FHA rates are set by lender and can vary greatly<br />No UPFRONT Mortgage Insurance Premium<br />No MONTHLY Mortgage Insurance<br />
  9. 9. CalSTRS 80/17 Purchase Loan<br />Home buyer requirements<br />There are no income limits or maximums<br />You do not have to be a first time homebuyer<br />You or spouse cannot own any other properties<br />Minimum FICO Scores <br />620 for Loan Amounts up to $400,000 <br />680 for Loan Amounts up to $650,000<br />Combined 1st & 2nd Loans<br />
  10. 10. CalSTRS 80/17 Purchase Loan<br />Max Loan Amounts<br />Conforming Loan Amount <br />Up to $417,000 - First mortgage loan amount<br />$521,250 Max Purchase Price<br />Jumbo Loan Amount <br />Up to $536,082 - First mortgage loan amount<br />Max total loan amounts $650,000<br />Up to $670,103 Max Purchase Price<br />Jumbo interest rate is typically 1% higher<br />
  11. 11. CalSTRS 80/17 Purchase Loan<br />Property Qualifications<br />Eligible Properties <br />Single Family Residence - Detached<br />Condominiums / Townhomes - Attached<br />Planned Urban Development (PUD) <br />Must be owner Occupied<br />Must be located in State of California<br />Cannot own any other properties<br />Mobile home in a park is not considered real property<br />
  12. 12. CalSTRS 80/17 Purchase Loan<br />The “Secret weapons” of this loan program<br />Max 1st Loan Amount - 80%<br />Qualify on 80% Only<br />Increases your purchasing power<br />Max 2nd Loan Amount - 17% <br />No payments for first 5 years<br />30 Year fixed rate loan only<br />Same interest rate for both loans<br />One time free float down – both loans<br />If the rates drop – you may lower your rate<br />
  13. 13. CalSTRS 80/17 Purchase Loan<br />Demystifying the deferred second loan<br />How the payments are calculated<br />Deferred payments for 5 Years<br />Simple interest accrues for deferred period <br />Accrued interest added to principle balance <br />Fully amortized over remaining 300 months<br />No surprises guarantee – Payment cannot change<br />You will always know the total payment beginning on <br />the 61st month.<br />
  14. 14. CalSTRS 80/17 Purchase Loan<br />Example Based on $300,000 Purchase Price<br /> $51,000 loan amount<br /> x 5.375%* interest rate<br /> $2,741.25 annual accrued interest<br />x 5 years deferral period<br />$13,706.25 total accrued interest for 5yrs<br />+ $51,000 original loan balance<br />$64,706.25 61st month new total principle with deferred interest<br />+ $144.920 15 days interim interest – attend “Closing Costs”<br />$64,841.17<br />$64,841.17 Amortized for 25 years = $393.42 payment<br />*Interest rates can change daily and without notice – This is only an example<br />
  15. 15. CalSTRS 80/17 Purchase Loan<br />Costs Controlled by CalSTRS<br />Cannot buy interest rate down<br />Below market / Set by CalSTRS<br />Cannot “roll in” closing costs into rate<br />Fannie Mae – Pricing Adjustments<br />Declining Market - .25%<br />Risk based credit score pricing - None at 740 FICO<br />Potentially lower cost than FHA - may require more money brought to the closing table<br />
  16. 16. Broadview Community Access<br />Sometimes CalSTRS is not the best option<br />If loan level price adjustments increase closing costs to unaffordable level<br />If all of down payment is coming from gift from relative<br />If you require a co-signer to qualify to buy a home<br />If you or your spouse are on title of other property<br />Broadview Community Access Affordable Mortgage<br />
  17. 17. Broadview Community Access<br />Affordable Home Purchase Program<br />Reduced upfront closing costs<br />No increase in closing cost if credit below 740<br />Same rate as CalSTRS 80/17 lower out of pocket cost<br />Reduced lender fees<br />Maximum lender fees $350<br />No processing or underwriting fees<br />Eligible for more flexible FHA qualifying guidelines<br />Minimum 620 credit score<br />Can use non-occupying co-signer to qualify<br />100% of down payment and closing costs as gift<br />
  18. 18. Get Educated – Be Empowered<br />“Red Flags” – Avoid Misinformation<br />Benefit specific members of the education community<br />CalSTRS loans have fixed rates and fees <br />Interest rates set daily by CalSTRS<br />Origination fees set by CalSTRS <br />Can not charge discount points for rate<br />There have been many instances of lenders / real estate agents misleading or misinforming buyers<br />Ignorance is ok – Not knowing is not unethical<br />Pushing FHA to make more money is common<br />
  19. 19. Get Educated – Be Empowered<br />“Red Flags” – Identify Bait & Switch<br />Agent recommends lender but not program<br />An educated agent or lender will empower you<br />FHA is first option or as result of a qualifying “problem”<br />GFE does not accurately reflect closing costs<br />Fannie Mae CA market fee - .25%<br />Credit Score 740 or less - ?%<br />Max 1.25% origination – No discount points allowed<br />Not all approved lenders/brokers are experts<br />Ask your loan officer how many they have closed<br />
  20. 20. The Next Step<br />Hiring your Real Estate Agent & Lender Team<br />The decision to work with a Loan Officer and Real Estate Agent is a decision to hire someone for a professional service it is to be taken very seriously<br />Hold your team accountable to high expectations of character, communication and expertise<br />A quality home buying team will educate and inform you <br />Always avoid pressure tactics and implied urgency<br />Make sure your team specializes in the programs that you are interested in to purchase your home<br />
  21. 21. The Next Step<br />What you need to get Pre-Approved<br />Income documents you will need to show your lender<br /> Last 30 days pay stubs for all buyers<br /> Last 2 years W2’s for all buyers<br /> 2 yrs tax returns IF non W2 income or expenses<br />Asset documents you will need to show your lender<br /> Last 60 days statements for all reserves including <br /> checking, savings, 401K, stocks, bonds<br />Tell your loan officer if you plan to use Gift Funds <br /> Incorrectly receiving or documenting gift funds could cause delays or problems closing on purchase<br />
  22. 22. About Broadview Mortgage<br />We are a direct Lender that specializes in CalSTRS, CalPERS, CalHFA, FHA, VA, USDA and Community based down payment assistance programs<br />We want the opportunity to be your lender if you have not already chosen one<br />We are more than happy to be your “second opinion” if you are already working with someone<br />If you are not working with an Agent, we can recommend a qualified Real Estate Agent in your area that shares our values and expertise<br />We are committed to Educating and Empowering homeowners, Please ask us about other homeownership education classes<br />
  23. 23. Got <br />Questions?<br />Get<br />Answers<br />
  24. 24. You are being empowered by<br />Broadview Mortgage - Katella<br />www.HomeownershipUniversity.com<br />Cell/Text: 714-336-8286<br />Office: 866-667-6724<br />Email: CalSTRS@BroadviewMortgageCorp.com<br />Thank you for attending<br />