Teachers and State Employees Have Specilaized Loan Programs
HOME LOANS, SHASTA COUNTY, TIPS FOR BUYERS
April 19th, 2009
CalSTRS and CalPERS loan programs offer competitively priced loans using funds from these retirement funds. Cal STRS is for teachers that have invested in the State Teachers Retirement System and Cal PERS is available for state employees, legislators and city/county employees that participate in the Public Employees Retirement System.
CalPERS requires borrowers tender a 5% downpayment or 3.5% for a CalPERS FHA hybrid loan. The downpayment can be borrowed from their retirement funds as long as they have twice the amount needed in their retirement account. Currently the interest rate is around 5% and the loan rate can be locked for up to 60 days.
CalSTRS has a new 80-17-3 program. The applicant makes a 3% downpayment, borrows 80% of the puchase price on a first and 17% second loan with payments deferred for 5 years. Interest accrues on the second loan at the same interest rate as the first and is tacked on to the principal then amortized over 25 years after the payment deferment period. This allows the buyer to have a lower payment for a period of time before the full payment kicks in.
Contact me for more information or referral to a lender that processes loans for CalSTRS or Cal PERS.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
