Special home loan programs for educators

Special Home Loan Programs
Get Educated
and
Be Empowered
Your class will begin in a moment
Thank you for your patience
For Education Professionals

You are being empowered by
Broadview Mortgage - Katella
www.HomeownershipUniversity.com
Cell/Text: 714-336-8286
Office: 866-667-6724
Email: CalSTRS@BroadviewMortgageCorp.com
Thank you for attending

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Questions?
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Answers

What you will learn in this Class
Special Loan Programs
CalSTRS 80/17 home purchase loan
Community Access purchase loan
Qualifying guidelines
Home buyer qualifications
Property qualifications
Your class will start in a moment

What you will learn in this Class
Red flags and Misinformation
How to avoid misinformation
How to identify bait and switch
The Next Step
Hiring the best team to help you buy
What you need to get pre-approved
Your class will start in a moment

CalSTRS 80/17 Purchase Loan
California State Teacher’s Retirement System
CalSTRS is NOT a lender and does not offer loans
CalSTRS established qualifying guidelines
CalSTRS approved lenders to offer loan program
CalSTRS will purchase closed loans that meet guidelines
Payments go back into CalSTRS pension fund
You do not have to be a member of CalSTRS

Who is Eligible for a CalSTRS 80/17
Employee of California public school / community college
Can work in any capacity
Can work in school district
Pay check stub from public school system
If you are eligible for CalSTRS pension benefits
Provide certificate of eligibility
Do not have to be currently employed
Any eligible borrower makes family eligible

Why CalSTRS 80/17 is better than FHA
Lower Down Payment than FHA
3.5% minimum for FHA
3% required for CalSTRS
Interest Rates as compared to FHA
Set by CalSTRS – Cannot be manipulated by lenders
FHA rates are set by lender and can vary greatly
No UPFRONT Mortgage Insurance Premium
No MONTHLY Mortgage Insurance

Home buyer requirements
There are no income limits or maximums
You do not have to be a first time homebuyer
You or spouse cannot own any other properties
Minimum FICO Scores
620 for Loan Amounts up to $400,000
680 for Loan Amounts up to $650,000
Combined 1st & 2nd Loans

Max Loan Amounts
Conforming Loan Amount
Up to $417,000 - First mortgage loan amount
$521,250 Max Purchase Price
Jumbo Loan Amount
Up to $536,082 - First mortgage loan amount
Max total loan amounts $650,000
Up to $670,103 Max Purchase Price
Jumbo interest rate is typically 1% higher

Property Qualifications
Eligible Properties
Single Family Residence - Detached
Condominiums / Townhomes - Attached
Planned Urban Development (PUD)
Must be owner Occupied
Must be located in State of California
Cannot own any other properties
Mobile home in a park is not considered real property

The “Secret weapons” of this loan program
Max 1st Loan Amount - 80%
Qualify on 80% Only
Increases your purchasing power
Max 2nd Loan Amount - 17%
No payments for first 5 years
30 Year fixed rate loan only
Same interest rate for both loans
One time free float down – both loans
If the rates drop – you may lower your rate

Demystifying the deferred second loan
How the payments are calculated
Deferred payments for 5 Years
Simple interest accrues for deferred period
Accrued interest added to principle balance
Fully amortized over remaining 300 months
No surprises guarantee – Payment cannot change
You will always know the total payment beginning on
the 61st month.

Example Based on $300,000 Purchase Price
$51,000 loan amount
x 5.375%* interest rate
$2,741.25 annual accrued interest
x 5 years deferral period
$13,706.25 total accrued interest for 5yrs
+ $51,000 original loan balance
$64,706.25 61st month new total principle with deferred interest
+ $144.920 15 days interim interest – attend “Closing Costs”
$64,841.17
$64,841.17 Amortized for 25 years = $393.42 payment
*Interest rates can change daily and without notice – This is only an example

Costs Controlled by CalSTRS
Cannot buy interest rate down
Below market / Set by CalSTRS
Cannot “roll in” closing costs into rate
Fannie Mae – Pricing Adjustments
Declining Market - .25%
Risk based credit score pricing - None at 740 FICO
Potentially lower cost than FHA - may require more money brought to the closing table

Broadview Community Access
Sometimes CalSTRS is not the best option
If loan level price adjustments increase closing costs to unaffordable level
If all of down payment is coming from gift from relative
If you require a co-signer to qualify to buy a home
If you or your spouse are on title of other property
Broadview Community Access Affordable Mortgage

Broadview Community Access
Affordable Home Purchase Program
Reduced upfront closing costs
No increase in closing cost if credit below 740
Same rate as CalSTRS 80/17 lower out of pocket cost
Reduced lender fees
Maximum lender fees $350
No processing or underwriting fees
Eligible for more flexible FHA qualifying guidelines
Minimum 620 credit score
Can use non-occupying co-signer to qualify
100% of down payment and closing costs as gift

Get Educated – Be Empowered
“Red Flags” – Avoid Misinformation
Benefit specific members of the education community
CalSTRS loans have fixed rates and fees
Interest rates set daily by CalSTRS
Origination fees set by CalSTRS
Can not charge discount points for rate
There have been many instances of lenders / real estate agents misleading or misinforming buyers
Ignorance is ok – Not knowing is not unethical
Pushing FHA to make more money is common

Get Educated – Be Empowered
“Red Flags” – Identify Bait & Switch
Agent recommends lender but not program
An educated agent or lender will empower you
FHA is first option or as result of a qualifying “problem”
GFE does not accurately reflect closing costs
Fannie Mae CA market fee - .25%
Credit Score 740 or less - ?%
Max 1.25% origination – No discount points allowed
Not all approved lenders/brokers are experts
Ask your loan officer how many they have closed

The Next Step
Hiring your Real Estate Agent & Lender Team
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
Hold your team accountable to high expectations of character, communication and expertise
A quality home buying team will educate and inform you
Always avoid pressure tactics and implied urgency
Make sure your team specializes in the programs that you are interested in to purchase your home

The Next Step
What you need to get Pre-Approved
Income documents you will need to show your lender
Last 30 days pay stubs for all buyers
Last 2 years W2’s for all buyers
2 yrs tax returns IF non W2 income or expenses
Asset documents you will need to show your lender
Last 60 days statements for all reserves including
checking, savings, 401K, stocks, bonds
Tell your loan officer if you plan to use Gift Funds
Incorrectly receiving or documenting gift funds could cause delays or problems closing on purchase

About Broadview Mortgage
We are a direct Lender that specializes in CalSTRS, CalPERS, CalHFA, FHA, VA, USDA and Community based down payment assistance programs
We want the opportunity to be your lender if you have not already chosen one
We are more than happy to be your “second opinion” if you are already working with someone
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
We are committed to Educating and Empowering homeowners, Please ask us about other homeownership education classes

Got
Questions?
Get
Answers

You are being empowered by
Broadview Mortgage - Katella
www.HomeownershipUniversity.com
Cell/Text: 714-336-8286
Office: 866-667-6724
Email: CalSTRS@BroadviewMortgageCorp.com
Thank you for attending

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Special home loan programs for educators

by HomeownershipUniversity.com on Sep 09, 2010

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