The CalSTRS program (California State Teachers Retirement System) still offers 97% financing. This program is known as the 80/17 CalSTRS Home Loan Program. For Orange County First Time buyers who are eligible, this is a great program

80/17 CalSTRS Home Loan Program

First, to be eligible for a STRS loan program, you must be, or have been, a member of the California State Teachers Retirement System. This will be most Public School Teachers. The 80/17 program requires 3% down payment, but only 1% needs to come from the borrowers own funds. The other 2% can be a gift from a relative or a grant from a government agency.

The "17" of the 80/17 is a "silent second" mortgage. The interest on the second mortgage is deferred simple interest for the first five years of the loan. The borrower does not have to make payments on the 2nd for the first 5 years of the loan, which can really help, especially for a First time Buyer trying to get used to have a mortgage payment. The interest rate on the second mortgage will be equal to the interest rate on the 1st mortgage.

The closing costs and prepays can be paid either by the buyer, from a gift, the seller, or a unsecured grant.

This is a great program and should be considered by any teacher who is eligible. For more information please contact Tim Storm at 877-786-4243 x 7.