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The state of California established a home loan program through the Teachers Retirement System in 1984. Through legislation, CalSTRS was then able to offer a mortgage-backed investment opportunity and an additional source of home financing for its members and retirees.

In 1986, CalSTRS began purchasing 15 and 30-year fixed interest rate options for conventional home loans. This enabled members to purchase single-family dwellings, single-family cooperative apartments, and single-family condominiums

Now, in 2005 the Teachers Retirement Board offers a Home Loan Program for Loan-To-Value ratios of up to 100%. CalSTRS has purchased over 23,000 loans over more than 20 years, amounting to more than $2.7 billion.

Home Loan Program Summary

CalSTRS participants can use the CalSTRS Home Loan Program to refinance their existing home loans or to buy new homes. We offer loan solutions that cater to everyone's needs, including you.

Eligible Property Types - Home loans are available to borrowers for the purchase of:

Single Family Dwellings
Two, three or four family dwellings
Single family cooperative apartments
Single-family condominiums

Terms and Conditions - Mortgage Loans made under this program must meet the following terms and conditions:

A recipient of a loan shall occupy the home as his or her principle residence.
The length of the loan must be for 15 or 30 years.
No more than 95% of a home's value can be borrowed.
Any loan that is equal to or exceeding 80% of the value of a home must have mortgage insurance.
The total loan amount cannot exceed $650,000.

Eligible Property Types - Home loans will be made available to borrowers for the purchase of:

Single Family Dwellings
Approved condominium projects
Approved attached and detached PUD projects

Terms and Conditions - Mortgage Loans made under this program are similar to those of the Conventional Loan Program, except that the combined (first and second) mortgage loan amount cannot exceed $359,650 (or $450,000, if the property is located in a designated high cost county).

Loan-to-Value Ratios (LTV) - Mortgage loans shall provide a maximum loan-to-value ratio of 100 percent for purchases and refinances .

Interest Rate - The loan rates shall be set by CalSTRS, and will have the same rate for both the First Mortgage (Whole Loan) and the Second Mortgage (Silent Second). The second mortgage has a 30 year deferred payment structure. The interest on the second mortgage is deferred simple interest for the first five years.

Closing Costs - The closing costs and prepaid items can be paid from following sources:

Borrower's own funds
Seller contributions up to 3%
Gift from relative
Unsecured grant from a government agency or an approved employer - assisted housing program.

The borrower (after closing) must have available cash reserves that equal at least two monthly mortgage payments. Funds from individual retirement accounts (IRA/Keogh accounts) and tax-favored retirement accounts (401k accounts) may be considered as cash reserves.

Eligible Property Types - Same as the Zero Down Preferred Program .


Terms and Conditions
- Mortgage Loans made under this program are similar to those of the Conventional Loan Program with the following exceptions:


Loan-to-Value Ratios (LTV) - Mortgage Loans shall provide a maximum loan-to-value ratio of 97% for purchases and refinances. The combined (first and second) mortgage loan amount cannot exceed $450,000 (or $550,000, if the property is located in a designated high cost county).


Interest Rate - The loan rates shall be set by CalSTRS, and will have the same rate for both the First Mortgage (Whole Loan) and the Second Mortgage (Silent Second). The second mortgage has a 30 year deferred payment structure. The interest on the second mortgage is deferred simple interest for the first five years.

The minimum combined LTV is 90%. The minimum LTV for the first loan is 80%; the second loan maximum LTV is 17%.


Down Payment - A 3% down payment is required. A minimum of 1% must come from the borrower's own funds. The remainder may come from a gift from a relative where repayment is not required or a grant from a government agency or an approved employer - assisted housing program.


Closing Costs - The closing costs and prepaid items can be paid from following sources:
* Borrower's own funds
* Seller contributions up to 3%
* Gift from relative
* Unsecured grant from a government agency or an approved employer - assisted housing program.

The borrower (after closing) must have available cash reserves that equal at least two monthly mortgage payments. Funds from individual retirement accounts (IRA/Keogh accounts) and tax-favored retirement accounts (401k accounts) may be considered as cash reserve

Apply for your CalSTRS home or refinance loan through DHI Mortgage now. Click here or call at 877.242.1700 today!