Home Loan Program/Cal HFA - Frequently Asked Questions
My loan is a CalSTRS second, how does it differ from a CalHFA second?
The CalSTRS/CalHFA seconds are not true seconds. True second loans have a separate Note and Deed of Trust. The CalSTRS silent second loan is a Note only and shares the Deed of Trust with the first, which is serviced elsewhere. Because both Notes are associated with the same Deed of Trust, both loans must be paid off at the same time, similar to CalHFA.
Can my CalSTRS second be assumed?
No, CalSTRS does not allow assumption of their loans.
Do I have to pay back my second loan?
Yes: you signed both a Note and Deed of Trust. CHFA subordinate financing (second is) secured by a recorded lien on the property. If you pay off the first by selling the property, refinancing the first mortgage, or at maturity of the first mortgage, transfer title to the property, or allow others to assume the first mortgage, the subordinate financing becomes all due and payable. These loans are not forgivable, nor do they go away after a period of time.
The CalSTRS second loan must be paid off when the first is refinanced.
Special conditions exist for a reduction of, and possibly the elimination of, the interest on Extra Credit Teacher second loans only.
Payoff demands
How do I obtain payoff information?
You can send a request in writing to CHFA, 1121 L Street, Suite 103, Sacramento, CA 95814 or fax a request to (916) 324-1050. Include borrower’s name, property address, and loan number if available. We do not give payoff quotes over the phone. We require borrower’s authorization if the request is from other than the borrower (escrow company, title company, another lender, etc.). Our normal turn around time is 5-10 working days.
Payments
Can I make payments on my “Silent” loan(s)?
Yes. Payments can be made by sending a check or money order to the California Housing Finance Agency, 1121 L Street, Suite 103, Sacramento, CA 95814. Make sure your name, property address, and loan number are on the payment instrument so that we can apply it to the correct loan(s).
Can I get payment coupons or a monthly statement for my second and third loan(s)?
Since these loans are “Silent” (no payments required) we do not issue coupons. You can call us or e-mail a request for an Activity Statement and we will mail one out.
Where do I make payments if want to?
Payments can be mailed to the California Housing Finance Agency (CALHFA), 1121 L Street, Suite 103, Sacramento, CA 95814. Your loan number should be referenced on the payment.
Who do I contact regarding payoff information?
You, or the title company handling the payoff, can send a request for payoff information to the above-referenced address or fax a request to (916) 324 -1050. Our turnaround time is 5-10 days.