Home Loan Program For Teachers

California State Teachers Retirement System (CalSTRS) provides a unique home loan program for eligible teachers, who carry the dreams of buying a new home in some part of California.

Under CalSTRS home loan program, a variety of mortgage loan programs are available for borrowers. These are listed below:

Conventional Fixed Rate Program:

In this, approved lenders offer 30-year and 15-year fixed rate loans for purchase and refinance of single and multi-family residences at competitive interest rates. Mortgage loan amount under this program is up to $834,000.

Zero Down Payment Mode (95/5 program):

Under this, one can purchase a home without even paying any down payment. However, the buyer needs to bear the closing costs. Mortgage loans available under this program are up to $650,000.

80/17 Program:

In this program, 17 percent of the down payment is financed through the second mortgage while the rest is financed using the first mortgage. The rest 3 percent is paid as a down payment by the borrower in the form of cash. This is a 30-year fixed interest rate program.

Reverse Mortgage:

Under this, home owners can utilize the equity built up on their primary residence and receive loan. The loan amount can either be obtained as a lump sump or as a monthly payment or even as a line of credit. This program does not have any income or health requirements nor does it require any monthly mortgage payments.

However, there are few restrictions in order to get approved for a CalSTRS home loan program. The applicant must be a citizen of the US and should be the primary resident of the purchased property. The loan amount should be used to buy property only in the state. Unique advantage of CalSTRS home loan program is that the income derived through the mortgage payments is diverted directly to the Teachers' Retirement Fund. For the convenience of borrowers, CalSTRS home loans offer a free 45-day interest rate lock-in period after the submission of loan application.

CalSTRS Refinance Loan Program

calstrs Standard Conventional loan programs can be used for purchases with down payment, cash out and rate and term refinances



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Loan Modification Program - Mortgage Refinance Rates at 2% Can Save Your Home

The plan offered by The US administration called "Making Home Affordable" enables homeowners to have a chance to save their houses from being foreclosed. This is through the help of the home loan modification program. The program is able to lower the interest rates to 2% and even extend the mortgage period of the borrower.

Recently, there has been up to $75 billion allocated to fund the stimulus plan which targets help to homeowners. Most of this money is given to the banks and mortgage lenders who will help the homeowners through the stimulus plans guidelines. The money will then give hope to people struggling, so that they can avoid having their home foreclosed.

Once banks and mortgage lenders will follow the guidelines, struggling homeowners can benefit in numerous ways such as:

• It enables the homeowners to have a refinance on their current loan even though they owe more than the actual market value of their house.

• If the home loan is supported by either Freddie Mac or Fannie Mae, the homeowner is automatically eligible to get the mortgage modification so that they can have a much affordable monthly payment.

• If the value of the home has remained the same or has dropped since you purchased it, it is easier to qualify and get approval for the mortgage refinancing.

• People that have suffered a drop in income or are encountering other financial difficulty now have an easier way to get a loan modification.

• The modified monthly payment does not surpass 31% of your gross monthly income with the mortgage modification to prevent you falling into debt again.

Since there are millions of homeowners that are facing home foreclosure, it is wise to apply for the plan now. The worst step you can take is to hope that something will come up without taking any action at all.

The last thing you want is to be sitting at home fearing every knock on the door and every telephone call when you can take action and save your home.

If this is the plan that you need, you should make use of it now so that you can be able to save money or even rescue your home from getting foreclosed.