How does the 80/17 Program differ from the other CalSTRS Home Loan Programs?
Mortgage Loans made under this program are similar to those of the Zero-Down (95/5) Preferred Program with the following exceptions: • The maximum loan-to-value ratio will be up to 97% for purchases and refinances. • 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 employer – assisted housing program, which has been approved by Bank of America Home Loans. • Interest Rate – The interest on the second mortgage is deferred simple interest for the first five years of the loan. • Closing Costs – The closing costs and prepays 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 employer – assisted housing program, which has been approved by Bank of America Home Loans. The borrower (after closing) must have available cash r
