When can the interest rate be locked in?
- The interest rate can only be locked once you have a fully executed purchase contract for a specific property. -BACK
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Are the interest rates the same for everybody?
- The interest rate for each particular program is the same for everyone. What is different is the cost applied based on the risk associated with each particular loan. When considering risk the the credit score, property type, market conditions, loan to value, etc. are taken into account. CalSTRS has "price adjustments" knows as "Loan Level Price Adjustments" or "LLPA's" that are applied to the file based on the risk. Click Here --> for further explanation. -BACK
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Is the interest rate fixed for the life of the loan?
- The CalSTRS rates are fixed for the life of the loan -BACK
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Can you explain the 80/17 program?
- The 80/17 loan program consists of two loans. The first loan is 80% of the purchase price and the second loan is 17% of the purchase price. The second loan is "deferred" for five years. This means that no payments are required on the second loan for the first five years. The down payment required is 3% of the purchase price.
- Additional Requirements are as follows:
- A minimum of 1% down payment must come from the borrower's own funds
- Gifts are allowed from family members
- Seller contributions can be up to 3% closing costs and prepaids
- Borrower cannot own additional property at the time of funding
- Borrower must have two months payments in reserves at the time of closing -BACK
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Can I qualify for the 80/17 loan program if I own another home?
- To qualify for the 80/17 program you cannot own any other property other than the one you are buying. -BACK
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Is the rate on the 80/17 second different than the rate of the first?
- The interest rate for the second loan is the same as the interest rate for the first loan -BACK
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Does interest accrue on the second loan during the 5 year deferment period?
- Yes, the second loan does accrue simple interest during the 5 year deferment period which is added to the loan balance in year 6 -BACK
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Can I make payments on the second loan during the 5 year deferment period?
- You may make payments at any time during the five year deferment period. -BACK
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How often do the interest rates change?
- Interest rates are subject to change at any time. For the most current interest rates please contact us at 1.800.992.1900. -BACK
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Are there pre-payment penalties on any of the CalSTRS home loans?
- The CalSTRS home loans do not have pre-payment penalties -BACK
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How does the free interest rate "float down" work?
- If the interest rates decrease from your locked rate, within the 45 day lock period, you may choose to take your 1 time free "float down" to the lower interest rate. -BACK
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