1. Special Home Loan Programs Get Educated and Be Empowered Your class will begin in a moment Thank you for your patience For Education Professionals

2. You are being empowered by Broadview Mortgage - Katella www.HomeownershipUniversity.com Cell/Text: 714-336-8286 Office: 866-667-6724 Email: CalSTRS@BroadviewMortgageCorp.com Thank you for attending

3. Got Questions? Get Answers

4. What you will learn in this Class Special Loan Programs CalSTRS 80/17 home purchase loan Community Access purchase loan Qualifying guidelines Home buyer qualifications Property qualifications Your class will start in a moment

5. What you will learn in this Class Red flags and Misinformation How to avoid misinformation How to identify bait and switch The Next Step Hiring the best team to help you buy What you need to get pre-approved Your class will start in a moment

6. CalSTRS 80/17 Purchase Loan California State Teacher’s Retirement System CalSTRS is NOT a lender and does not offer loans CalSTRS established qualifying guidelines CalSTRS approved lenders to offer loan program CalSTRS will purchase closed loans that meet guidelines Payments go back into CalSTRS pension fund You do not have to be a member of CalSTRS

7. CalSTRS 80/17 Purchase Loan Who is Eligible for a CalSTRS 80/17 Employee of California public school / community college Can work in any capacity Can work in school district Pay check stub from public school system If you are eligible for CalSTRS pension benefits Provide certificate of eligibility Do not have to be currently employed Any eligible borrower makes family eligible

8. CalSTRS 80/17 Purchase Loan Why CalSTRS 80/17 is better than FHA Lower Down Payment than FHA 3.5% minimum for FHA 3% required for CalSTRS Interest Rates as compared to FHA Set by CalSTRS – Cannot be manipulated by lenders FHA rates are set by lender and can vary greatly No UPFRONT Mortgage Insurance Premium No MONTHLY Mortgage Insurance

9. CalSTRS 80/17 Purchase Loan Home buyer requirements There are no income limits or maximums You do not have to be a first time homebuyer You or spouse cannot own any other properties Minimum FICO Scores 620 for Loan Amounts up to $400,000 680 for Loan Amounts up to $650,000 Combined 1st & 2nd Loans

10. CalSTRS 80/17 Purchase Loan Max Loan Amounts Conforming Loan Amount Up to $417,000 - First mortgage loan amount $521,250 Max Purchase Price Jumbo Loan Amount Up to $536,082 - First mortgage loan amount Max total loan amounts $650,000 Up to $670,103 Max Purchase Price Jumbo interest rate is typically 1% higher

11. CalSTRS 80/17 Purchase Loan Property Qualifications Eligible Properties Single Family Residence - Detached Condominiums / Townhomes - Attached Planned Urban Development (PUD) Must be owner Occupied Must be located in State of California Cannot own any other properties Mobile home in a park is not considered real property

12. CalSTRS 80/17 Purchase Loan The “Secret weapons” of this loan program Max 1st Loan Amount - 80% Qualify on 80% Only Increases your purchasing power Max 2nd Loan Amount - 17% No payments for first 5 years 30 Year fixed rate loan only Same interest rate for both loans One time free float down – both loans If the rates drop – you may lower your rate

13. CalSTRS 80/17 Purchase Loan Demystifying the deferred second loan How the payments are calculated Deferred payments for 5 Years Simple interest accrues for deferred period Accrued interest added to principle balance Fully amortized over remaining 300 months No surprises guarantee – Payment cannot change You will always know the total payment beginning on the 61st month.

14. CalSTRS 80/17 Purchase Loan Example Based on $300,000 Purchase Price $51,000 loan amount x 5.375%* interest rate $2,741.25 annual accrued interest x 5 years deferral period $13,706.25 total accrued interest for 5yrs + $51,000 original loan balance $64,706.25 61st month new total principle with deferred interest + $144.920 15 days interim interest – attend “Closing Costs” $64,841.17 $64,841.17 Amortized for 25 years = $393.42 payment *Interest rates can change daily and without notice – This is only an example

15. CalSTRS 80/17 Purchase Loan Costs Controlled by CalSTRS Cannot buy interest rate down Below market / Set by CalSTRS Cannot “roll in” closing costs into rate Fannie Mae – Pricing Adjustments Declining Market - .25% Risk based credit score pricing - None at 740 FICO Potentially lower cost than FHA - may require more money brought to the closing table

16. Broadview Community Access Sometimes CalSTRS is not the best option If loan level price adjustments increase closing costs to unaffordable level If all of down payment is coming from gift from relative If you require a co-signer to qualify to buy a home If you or your spouse are on title of other property Broadview Community Access Affordable Mortgage

17. Broadview Community Access Affordable Home Purchase Program Reduced upfront closing costs No increase in closing cost if credit below 740 Same rate as CalSTRS 80/17 lower out of pocket cost Reduced lender fees Maximum lender fees $350 No processing or underwriting fees Eligible for more flexible FHA qualifying guidelines Minimum 620 credit score Can use non-occupying co-signer to qualify 100% of down payment and closing costs as gift

18. Get Educated – Be Empowered “Red Flags” – Avoid Misinformation Benefit specific members of the education community CalSTRS loans have fixed rates and fees Interest rates set daily by CalSTRS Origination fees set by CalSTRS Can not charge discount points for rate There have been many instances of lenders / real estate agents misleading or misinforming buyers Ignorance is ok – Not knowing is not unethical Pushing FHA to make more money is common

19. Get Educated – Be Empowered “Red Flags” – Identify Bait & Switch Agent recommends lender but not program An educated agent or lender will empower you FHA is first option or as result of a qualifying “problem” GFE does not accurately reflect closing costs Fannie Mae CA market fee - .25% Credit Score 740 or less - ?% Max 1.25% origination – No discount points allowed Not all approved lenders/brokers are experts Ask your loan officer how many they have closed

20. The Next Step Hiring your Real Estate Agent & Lender Team The decision to work with a Loan Officer and Real Estate Agent is a decision to hire someone for a professional service it is to be taken very seriously Hold your team accountable to high expectations of character, communication and expertise A quality home buying team will educate and inform you Always avoid pressure tactics and implied urgency Make sure your team specializes in the programs that you are interested in to purchase your home

21. The Next Step What you need to get Pre-Approved Income documents you will need to show your lender Last 30 days pay stubs for all buyers Last 2 years W2’s for all buyers 2 yrs tax returns IF non W2 income or expenses Asset documents you will need to show your lender Last 60 days statements for all reserves including checking, savings, 401K, stocks, bonds Tell your loan officer if you plan to use Gift Funds Incorrectly receiving or documenting gift funds could cause delays or problems closing on purchase

22. About Broadview Mortgage We are a direct Lender that specializes in CalSTRS, CalPERS, CalHFA, FHA, VA, USDA and Community based down payment assistance programs We want the opportunity to be your lender if you have not already chosen one We are more than happy to be your “second opinion” if you are already working with someone If you are not working with an Agent, we can recommend a qualified Real Estate Agent in your area that shares our values and expertise We are committed to Educating and Empowering homeowners, Please ask us about other homeownership education classes

23. Got Questions? Get Answers

24. You are being empowered by Broadview Mortgage - Katella www.HomeownershipUniversity.com Cell/Text: 714-336-8286 Office: 866-667-6724 Email: CalSTRS@BroadviewMortgageCorp.com Thank you for attending