How does the Zero Down Program differ from the other CalSTRS Home Loan Programs?
Under the CalSTRS Zero-Down Preferred Program (95/5), the borrower will pay only the closing costs. Secondary financing for the down payment will come in the form of a deferred second loan. In other words, the borrower will sign two notes: one for the first mortgage of 95% and another note for 5%. The 5% is deferred because the loan payment is deferred for the first five years of the loan.
