CalHFA Extra Credit Teacher Program (ECTP)

Program Overview

The State of California Housing Finance Agency (CalHFA) has really done an incredible job expanding this program to include many, many more staff, administration and other employees of that were excluded from the original ECTP program.This program is restricted to teachers, administrators, school district employees and staff members working for any California K-12 public school, which includes Charter schools and county/continuation schools.

The Extra Credit Teacher Program is a deferred payment subordinate loan with an interest forgiveness feature after 3 years.

Borrower Eligibility

  • Any employee of a California K-12 public school, Charter, or County/Continuation school
  • Owner Occupied only – borrower must live in the home as a primary residence
  • Must be first-time homebuyer
  • 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
  • 45% Debt to Income Ratio
  • Non-Occupying Co-Signers allowed
  • Income Limits Apply (varies by county)
  • 105% Combined Loan to Value including assistance loans

Extra Credit Teacher Program Loan Terms

  • 3% of Sales Price or $7,500 in non-high cost areas - whichever is greater
  • 3% of Sales Price or $15,000 in high cost areas - whichever is greater
  • 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 first mortgage programs
  • May be combined with CalPLUS FHA or Conventional, MCC or EEM
  • One occupying borrower must be currently employed in a California K-12 public school, Charter school, county/ continuation school or school district

Property Eligibility

  • Single Family Residence and HUD approved condos
  • Sales Price Limit - $660,000
  • Owner Occupied Only
  • 1 Year Home Warranty (except new construction)

Minimum Home Warranty Coverage

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

What is a First Time Home Buyer?

CalHFA uses the definition of a first time home buyer as any buyer that has not had an ownership interest in a primary residence in the past three (3) years.

More Assistance Options

If funds are no longer available, or you are unable to meet the qualifications for this assistance program, there are other options that may be available to you.

California home buyers should also explore Mortgage Credit Certificates, CRA Programs, Lender/Agent Credits or other creative down payment and closing cost assistance options.

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