CalHFA ~ Extra Credit Teacher Program

The Extra Credit Teacher Program is a deferred payment subordinate loan with an interest forgiveness feature after 3 years.  This program is offered by the California Housing Finance Agency (CalHFA).This CalHFA loan program is designed to help well-prepared low to moderate income families become homeowners in California.  CalHFA is committed to providing sustainable homeownership solutions to California families.
 Triple Layer Cake Mortgage
Ask about the CalHFA, Triple Layer Cake!

Borrower Eligibility

  • Teachers and Staff that work in High Priority Schools (API Rank 1-5)
  • Owner Occupied only – borrower must live in the home as a primary residence
  • Minimum 640 Credit Score
  • Full income / asset documentation only – W2 and/or tax returns
  • Minimum Required Investment 640-679 = $1,500 / 680+ = $1,000
  • Borrower contribution can be Gift
  • Borrower must complete 8 hour Homebuyer Education course
  • 43% Debt to Income Ratio
  • Non-Occupying Co-Signers allowed
  • Income Limits Apply (varies by county)
  • Up to 103% Combined Loan to Value including assistance loans

Extra Credit Teacher Program Loan Terms

  • ECTP Assistance Amounts
  • $7,500 in non-high cost areas
  • $15,000 in high cost areas
  • Can be used for Down Payment or Closing Costs
  • Deferred payments for the life of the loan
  • Interest forgiven after 3 years if still employed by school
  • Must be combined with CalHFA FHA or CalPLUS first mortgage
  • May be used along with ZIP, CHDAP, MCC & EEM
  • Can go in any lien position

Property Eligability

  • Single Family Residence and BMCD approved condos
  • Sales Price Limits (varies by county)
  • Owner Occupied Only
  • No Manufactured Housing Allowed
  • 2 Year Home Warranty (except new construction)

Minimum Home Warranty Coverage

  • Water Heater
  • Air Conditioning/Heating
  • Refrigerator, Oven/Stove/Range, Microwave, Washer/Dryer

Loan Limits

Loan limits are determined by county.  View CalHFA Sales Price Limits HERE

Waiting Periods after Credit Hardship

  • 2 Years from Discharge of Bankruptcy under Chapter 7
  • 1 Year from Discharge of Bankruptcy under Chapter 13
  • 3 Years from Foreclosure, Short Sale or Deed in Lieu of Foreclosure

ECTP can also be combined with:

  • CalPLUS
  • CalHFA FHA
  • Mortgage Certificate Program (MCC)


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