CalHFA resurrected the Extra Credit Teacher Program (ECTP). ECTP is a first time home buyer program that provides assistance in the form of down payment or closing cost money for all teachers, support staff, administrators, bus drivers, food service, and janitors.
UPDATE: The CalHFA ECTP down payment assistance program for teachers has been discontinued and replaced with the new CalHFA School Teacher and Employee Assistance Program.
Eligible homebuyer should be employed in ANY K-12 California public school, charter school, school district office or county continuation school.
This junior loan amount can be up to $15,000 in high cost counties or up to $7,500 in the non-high cost counties of where the home is being purchased.
The ECTP loan must be used in conjunction with a CalHFA first mortgage.
Extra Credit Teacher Program Qualifying Guidelines
- First time home buyers only*
- Deferred payment for the life of the loan at 2.5% interest
- Minimum 640 credit score
- Owner Occupied – Primary Residence
- (non-occupant co-borrowers NOT allowed)
- Maximum 45% DTI ratio
- Cannot exceed the CalHFA County household income limit
- Maximum 103% CLTV
- Manufactured housing NOT allowed (only SFR/PUD’s and condos)
- Cannot exceed the CalHFA county sales price limit
- First time home buyer education course required
- Two year home warranty required
- Do not have to live or buy in the school district of the school….just have to work their.
*First time homebuyer is someone who hasn’t owned a home in the last 3 years.
How to Apply for the Extra Credit Teacher Assistance Program
Remember, CalHFA does not lend money directly to consumers, but rather purchases loans from private direct lenders that originate loans who insure borrowers meet the CalHFA’s specific loan guidelines.
Most lenders are not experienced in working with any assistance programs and most are NOT APPROVED to offer CalHFA home loans and will try steering you into other higher cost assistance programs.
To avoid that and ensure you work with a licensed and approved mortgage lender, home buyers should apply here to receive their loan pre-approval, contact me here, or just call (951) 215-6119 and I’ll guide you through the qualifying process.