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

Published in: Business, Real Estate
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  • 1. 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]
  • 2. 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
  • 3. 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
  • 4. 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
  • 5. 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
  • 6. 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
  • 7. Overview of the California Real Estate Market
  • 8. Overview of the California Real Estate Market
    • Most California home prices have dropped more than 20% since July of 2007
  • 9. Overview of the California Real Estate Market
    • Many California home prices have dropped more than 30% since July of 2007
  • 10. 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.
  • 11. 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.
  • 12. 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
  • 13. 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
  • 14. 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
  • 15. 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
  • 16. 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
  • 17. 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
  • 18. 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
  • 19. 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
  • 20. 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
  • 21. 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
  • 22. 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
  • 23. 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
  • 24. 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
  • 25. 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”.
  • 26. 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
  • 27. 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
  • 28. 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
  • 29. 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
  • 30. 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]

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