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CalSTRS 80/17 Webinar   Nov 20th 2008   Updated Master
 

CalSTRS 80/17 Webinar Nov 20th 2008 Updated Master

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Updated power point presentation of A Complete Guide to the CalSTRS 80/17 home purchase program

Updated power point presentation of A Complete Guide to the CalSTRS 80/17 home purchase program

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    CalSTRS 80/17 Webinar   Nov 20th 2008   Updated Master CalSTRS 80/17 Webinar Nov 20th 2008 Updated Master Presentation Transcript

    • A Complete Guide to the CalSTRS 80/17 Purchase Loan Updated Presentation originally broadcast on November 20 th , 2008 Presented By: Broadview Mortgage Corp. Presenter: Scott Schang, CalSTRS Specialist Contact Information: Phone: 866-667-6724 [email_address]
    • A Complete Guide to the CalSTRS 80/17 Purchase Loan
      • Topics We Will Cover In This Class
      • Overview of California Real Estate Market
      • A Complete Guide to CalSTRS 80/17
      • Everything you need to know about the $7,500 Federal Tax Credit - Update
      • Things you should know about getting started
      • Wrap Up and Take Aways
    • A Complete Guide to the CalSTRS 80/17 Purchase Loan
      • The Purpose and Goals of this Class
      • To Create and Empower Home Owners
      • Educate you about the current California Real Estate market and Financing Options
      • Empower you with the ability to make educated decisions in the home buying process
      • Introduce you to Broadview Mortgage as THE CalSTRS 80/17 Expert
    • A Complete Guide to the CalSTRS 80/17 Purchase Loan
      • Topics We Will Cover In This Class
      • Questions and Answers
        • You may type questions in at any time during the presentation – Questions and Answers Box
        • CalSTRS 80/17 specialists are standing by to answer your questions during the presentation
        • I will answer questions live at end of webinar
        • The only dumb question the one you don’t ask
      • Write number down now in case you get disconnected
        • 1-866-667-6724
    • Overview of the California Real Estate Market
      • Being At The Right Place / Right Time
      • What it means to be in a Buyer’s Market
          • Supply and demand
          • Many homes for sale
          • Few home buyers in market
          • Credit market offers few options
      • Why CA Market is a “Perfect Storm”
        • Affordability Factor up
        • Median Home Prices Down
        • Specialty Programs for Home Buyers
    • Overview of the California Real Estate Market
      • California Housing Affordability Index
        • Index used to determine the percentage of families that could afford a home
      • Method Used to Determine Affordability
        • Median Home Prices
        • Interest Rates
        • Down Payment – 10% used for index
        • Statistical Data for area incomes
      • Value as a Comparative Analysis
        • Affordability approaching 2003 numbers
        • 2003 home sales and affordability 30 year highs
    • Overview of the California Real Estate Market
    • Overview of the California Real Estate Market
      • Most California home prices have dropped more than 20% since July of 2007
    • Overview of the California Real Estate Market
      • Many California home prices have dropped more than 30% since July of 2007
    • California Real Estate Market in the News
      • HEADLINE: Southern California home sales jump 65 percent in September
        • Mercury News, Silicon Valley – Oct. 20 th , 2008
        • LOS ANGELES — Southern California home sales jumped 65 percent in September from a year ago, as plummeting prices fueled by foreclosures lured more buyers, a real estate tracking firm said Monday.
        • Last month's median home price in the six-county region fell 33.2 percent to $308,500, compared with $462,000 in September 2007, according to San Diego-based MDA DataQuick.
    • California Real Estate Market in the News
        • HEADLINE: Bargains Boost SoCal Home Sales a record 67% in October!
          • OC Register, Nov. 18 th
        • Bargain-basement sales helped pull down home prices in the SoCal region last month and boosted the number of transactions by a record 67%
        • The median price of a Southern California home fell to $300,000 in October — the lowest since April 2003 and down 41% below the peak price hit in the spring and summer of 2007.
    • A Complete Guide to CalSTRS 80/17
      • Who’s Eligible for a CalSTRS 80/17?
        • Any employee of a California public school or 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
    • A Complete Guide to CalSTRS 80/17
      • CalSTRS 80/17 Compared to FHA
      • FHA is a GREAT program as a Plan B
        • Low down payment requirements
        • Low up front closing costs
        • Aggressive interest rates
        • 6% seller concessions from seller
        • Flexible qualifying guidelines
        • No penalty for lower credit scores
      • If you are eligible and qualify for the CalSTRS 80/17 there is simply no comparison. Period
    • A Complete Guide to CalSTRS 80/17
      • CalSTRS 80/17 – Max Loan Amounts
      • Conforming Loan Amount
        • Up to $417,000
        • $521,250 Max Purchase Price
      • Jumbo Loan Amount
        • Up to $520,000
        • Up to $650,000 Max Purchase Price
      • Jumbo interest rate is typically 1% higher
    • A Complete Guide to CalSTRS 80/17
      • CalSTRS 80/17 – Property Qualifications
      • Eligible Properties
        • Single Family Residence
        • Condominiums
        • Planned Urban Development (PUD)
      • Must be owner Occupied
      • Must be located in State of California
      • Can not own any other properties
    • A Complete Guide to CalSTRS 80/17
      • CalSTRS 80/17 – Loan Structure
      • Max 1 st Loan Amount - 80%
        • Qualify on 80% Only
        • Increases your purchasing power
      • Max 2 nd 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
        • Anytime in first 40 days
    • A Complete Guide to CalSTRS 80/17
      • CalSTRS 80/17 – Second Mortgage
      • Second Mortgage Loan
        • Deferred payments for 5 Years
        • Simple interest accrues for deferred period
        • Accrued interest added to principle balance
        • Fully amortized over remaining 300 months
      • How to permanently lower your payments
        • Principle reductions reduce term only on fully amortized loan programs
        • Pay second down any time during first 5 years
        • Result is long significant long term interest savings
    • A Complete Guide to CalSTRS 80/17
      • CalSTRS 80/17 – Down Payment
      • Down payment requirements
        • 3% down payment
        • 1% from buyer’s own funds
      • Sources of Down Payment and Closing Costs
        • Down Payment - Borrower's own funds
        • Down Payment - Gift from relative
        • Down Payment – Grant from government agency
        • Closing Costs - Seller contributions up to 3%
        • Closing Costs - Borrower's own funds
        • Closing Costs - Gift from relative
    • A Complete Guide to CalSTRS 80/17
      • Other CalSTRS 80/17 Highlights
      • No Income limits
      • You do not have to be a first time homebuyer
      • You can not own any other properties
      • Minimum FICO Scores
        • 620 for Loan Amounts up to $400,000
        • 680 for Loan Amounts up to $650,000
          • Combined 1 st & 2 nd Loans
      • Interest Rate lock requires Property Address
        • Typically rate is locked when offer is accepted
      • If offer falls out – Rate lock is lost as well
    • A Complete Guide to CalSTRS 80/17
      • CalSTRS 80/17 - What Makes it Different
      • Can not buy interest rate down
        • Below market / Set by CalSTRS
      • Can not “roll in” closing costs into rate
      • Fannie Mae – Pricing Adjustments
        • Declining Market - .25%
        • High LTV Flex 97 - .5%
        • Risk based credit score pricing
          • None at 740 FICO
      • Much lower cost than FHA but may require more money brought to the closing table
    • A Complete Guide to CalSTRS 80/17
      • CalSTRS 80/17 – Review
        • Only 3% down payment required
        • No upfront mortgage insurance premium
        • No monthly mortgage insurance premium
        • Qualify for 80% first mortgage only
        • 17% second mortgage deferred for 5 years
        • No income or first time home buyer limits
        • Up to 3% seller concessions for closing costs
        • Rates set by CalSTRS
        • Interest rate can be locked once offer accepted
    • A Complete Guide to CalSTRS 80/17
      • Bait and Switch “Red Flags”
        • Community programs designed to benefit specific members of the community
        • CalSTRS loans have fixed fixed rates and fees
          • Buyer Benefit - Lenders can’t charge more
        • What to watch out for……
          • Agent recommends lender but not program
          • Lender isn’t CalSTRS 80/17 Expert
          • FHA is presented as an option/solution
        • Loan Approval is automated and instant
          • Conditions include contract and inspections
      • CalSTRS loans can close in weeks
        • Escrow can often be delayed without penalty
    • Everything you need to know about the $7,500 Federal Tax Credit
      • Purchase home between April 1 st 2008 and July 31 st 2009
      • Must be first time home buyer
        • Can not have owned in past 3 years
      • $7,500 tax credit Regardless of Filing Status
      • Income can not exceed $150,000 for married couple
      • Income can not exceed $75,000 for single
      • Credit paid back over 15 years
      • May be able to claim credit before purchase
        • Adjust W4 withholdings to increase take home
    • Things you should know about getting started
        • Very First Step – Get pre-approved for financing
        • Get pre-approved for the maximum you can qualify for – Be prepared for competition
        • Work with a buyer’s agent – Fiduciary duties require that your best interests are represented
        • Work with a Real Estate Agent that is familiar with these special home purchase programs
        • Work with a Lender that is already familiar with this program
    • Wrap up and Take Aways
        • Home prices have dropped 20-50% and homes are twice as affordable as they were 2 or 3 years ago
        • California Teachers, Public Employees and First Time Home Buyers have more purchasing power than many other buyers in the market
        • Opportunities like this happen once in a lifetime
        • Educate yourself on the process. Do not take anyone’s “word for it”.
    • Wrap up and Take Aways
        • We are the Lender for all CalSTRS, CalPERS, CalHFA, FHA & VA, Conventional and Jumbo Loans.
        • We can Refer you to a qualified Real Estate Agent in your area
        • We are more than happy to be your “second opinion” if you are already working with someone
        • We are committed to educating and empowering homeowners
    • Wrap up and Take Aways
        • You will receive a “Thank You” email that will include all of our contact information for questions
        • Access to Applications and Resources:
          • Getting Approved for a CalSTRS loan
          • Find a Qualified Real Estate Agent
          • Contact a loan specialist to answer questions
          • Dream home finder
          • Informative and educational YouTube library
    • Upcoming Home Buyer Classes
      • A Complete Guide to Buying Foreclosures and Short Sales
        • Saturday, Nov 22 nd – 10:00am – 11:30am
          • Road Map to Home Ownership
          • How to find and hire a Real Estate agent
          • What you need to know about Short Sales
          • What you need to know about Foreclosures
      • Real Estate Agent Round Table
        • Saturday, Nov 29 th – 10:00am to 11:30am
          • Open Q&A with Experienced Agents talk about buying home in this market
      • Check back often for upcoming classes
    • Schedule a Live or Private Home Buyer Workshop
      • Live or private on-line classes available
      • Call me to schedule time / place
      • No minimum for on-line classes
      • Open and Extensive Q & A
      • Expanded topics – create your own
        • Choose loan programs
        • Choose topics
    • Thank you for Attending Please make suggestions and recommendations for future on-line class topics Presented By: Broadview Mortgage Corp. Presenter: Scott Schang, CalSTRS Specialist Contact Information: Phone: 866-667-6724 [email_address]