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$5MM Homebuyer Assistance for California Teachers ECTP Program

Breaking News:  August 2013, the State of California funds the reborn Extra Credit Teacher Program to the tune of $5,112,335 (as of 8/1/13).

Assistance Summary

The Extra Credit Teacher Home Purchase Program (ECTP) is a deferred payment, simple interest rate subordinate loan. The ECTP loans are available either at an amount:

  • Not to exceed the greater of $7,500 or 3% of the lesser of the sales price or appraised value
  • Not to exceed the greater of $15,000 or 3% of the lesser of the sales price or appraised value in CalHFA-defined high cost areas.

The Extra Credit Teacher Program can only be used for down payment assistance with an eligible CalHFA first mortgage loan.

In addition, CalHFA will permit qualified homebuyers to use other FHA-approved subordinate loans or grants (with the exception of CHDAP) to help in the purchase of the home.

Target Markets

This program is intended for eligible teachers, administrators, classified employees and staff members working in either county/continuation schools or high priority schools (schools with Academic Performance Index (API) ranks of 1-5) in California.

Applicants must also be first-time homebuyers.

Borrower Requirements

  • Meet credit, income and loan requirements of CalHFA, the CalHFA approved lender and FHA
  • Be currently employed in a county/ continuation school or a public or charter school that scores in the bottom fifty percent (50%) state- wide (API ranks 1-5), or be assigned to a school district but teach in, provide administration in or provide service to at least one high priority school.  View California API Rankings Here
  • Hold an appropriate credential for a teacher, administrator or staff member or be employed as a Classified Employee. “Classified Employee” means an employee of a school district, employed in a position not requiring certification qualifications.
  • Intend to work for three years continuously from the date of the loan in a high priority school or county/continuation school.
  • You must be a first time homebuyer.

First Time Homebuyer Definition

  • All borrowers (including co-borrowers) must reside in the home and meet the definition of a first-time homebuyer.
  • A first-time homebuyer is de-fined as a borrower who has not had an ownership interest in any principal residence during the previous three years.

Exceptions to firsttime Homebuyer requirements:

You do not have to meet the first time homebuyer definition to qualify for this program if you meet one of these two Exceptions:

  • Qualified veterans are not required to be first-time homebuyers pursuant to the Heroes Earnings Assistance and Relief Tax Act of 2008
  • Borrowers purchasing a home located in a federally designated  targeted area are not required to be first-time homebuyers
    • Targeted areas, defined by the Federal Tax Act, are: 1) census tracts in which seventy percent (70%) or more of the families have an income which is eighty percent (80%) or less of the statewide median family income, and 2) areas of chronic economic distress as provided in Section 143(j) of the Internal Revenue Code of 1986.

California Teachers Programs

The State of California, through the California Housing Finance Authority (CalHFA) and the California State Teachers Retirement System (CalSTRS), is committed to making a concerted effort to provide affordable housing options for teachers, staff and employees of California’s public schools, school districts and community colleges.

After bringing back the Extra Credit Teacher Program, and with the expectation of the return of the CalSTRS home loan benefit, this is a great opportunity for California’s education professionals to become homeowners.

Related Programs

The Extra Credit Teacher Program is one option for California teachers and education professionals.  Here are a couple other options that you should explore to make an educated decision:

Participating Lenders

This program is only available through a CalHFA-approved lender.

Speak to a Teacher Loan Specialist

If you need more details, have questions, or would like to speak to an expert about what options you might qualify for, you can call, email or complete this short inquiry and let us know the best time to have this conversation and we’ll speak to you shortly.

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