California Teacher Home Loan Assistance Programs
California s Teachers, Educators, and School District Employees have several home mortgage and home buyer assistance program options besides the suspended CalSTRS Teacher home loan.
Below is a brief summary and complete list of Teacher home loan and home buyer down payment assistance programs in California.
Extra Credit Teacher Home Purchase Program
The ECTP home buyer assistance program is offered through the California Housing Finance Agency (CalHFA). ECTP gives eligible teachers, support staff, administrators, food service, and janitors who are first time homebuyers for down payment assistance in the form of a silent second deferred payment junior loan.
The assistance can be in the form of down payment or closing costs up to $15,000 in high cost counties.
To be eligible for the California Extra Credit Teacher Home Buying Program, you must be employed by a K-12 public school, Charter School, couty/continuation school, or by tthe school district.
Read more details about eligibility and qualifying for the ECTP program go here or read this.
CalHERO Teacher Home Loan
CalHERO is an EXCLUSIVE home loan for teachers and educators. CalHERO was developed to provide an alternative home loan benefit for CalSTRS members. Ever since the CalSTRS program administrator and master servicer chose to not renew their home loan program.
CalHERO eligible borrowers can combine other assistance assistance programs with the CalHERO home loan to further reduce funds needed for closing on a purchase.
CalHERO Teacher Mortgage Highlights
- Discounted interest rates
- Reduced lender fees
- NO income limits
- For purchase or refinance of an existing loan
- Down payments as low as 3.5%
- Credit scores as low as 600
- NOT limited to first time home buyers
- Lender credits available to help pay closing costs
- Can combine or layer CalHERO with other assistance programs
CalSTRS 80/17 Refinance. CalHERO can also be used to refinance and consolidate a CalSTRS 80/17 combo loan in which the 2nd mortgage payment is about to adjust and make your monthly payments INCREASE! Current teachers with a CalSTRS 80/17 loan should read be proactive and take action by reading this.
CalHERO is a LESS EXPENSIVE option than the former CalSTRS loan because CalHERO does not charge a 1.5% up front origination fee. More details on CalHERO can be read here.
We are actively working on an official endorsement as a financial provider for CTA members.
Good Teacher Next Door 50% Off Homes!
The Good Teacher Next Door program is actually a nationwide home buying program that enables teachers to purchase homes for 50% off the listed sale price. This program is officially referred to as the Good Neighbor Next Door (GNND).
The Good Neighbor/Good Teacher Next Door program is not an actual home loan program, but rather a home buying program. Teachers can use any mortgage program, like CalHERO, to purchase these homes.
The Good Teacher Next Door program s goal is to promote home ownership and give a large financial incentive for teachers to buy a HUD owned home in hopes their presence will help revitalize targeted neighborhoods. You can read more about the Good Teacher Next Door and conditions of buying here or here.
MyCommunity Teacher Mortgage (MCTM)
The MyCommunity Teacher Mortgage gives teachers in California access to a low down payment home loan with more flexible underwriting guidelines and discounted PMI.
Although the MyCommunity Teacher Mortgage is not limited to first time home buyers, it does have a household income limit based on the borrowers household income and cannot exceed 140% of the county Area Median Income (AMI).
Southern California income Limits (call me for other counties)
- Riverside County – $87,640
- San Bernardino County – $87,640
- Orange County – $93,520
- San Diego County – $101,220
- Los Angeles County – $93,520
The MCTM program is an alternative to CalSTRS and other programs if you cannot met CalPATH criteria. Buyers can also combine the CalHFA down payment assistance program (CHDAP) with the MCTM.
You can read more about the MyCommunity Teacher Mortgage here.
Additional California Teacher Assistance Home Loan Programs
CalHFA offers several first time home buyer and/or down payment assistance programs that teachers can benefit from
CalPLUS w/ ZIP provides 3.5% down payment assistance silent second mortgage that is deferred at 0% for life of the loan.
CalHFA first lien Conventional or FHA program.
CalHFA MyHOME Assistance provides 5% for down payment assistance in the form of a silent second mortgage for first time home buyers.
NHF/GSFA Grant program provides home buyer assistance for buyers who are NOT first time home buyers!
Platinum or Sapphire Grant can be either an FHA or Conventional loan that provides up to 5% in the form of a grant that never has to be repaid.
NHSIE (Neighborhood Housing Services of the Inland Empire) offers two homebuyer programs teachers can use.
CalHOME A Mortgage Assistance Program offers a 10% silent second mortgage for first time home buyers.
CityLIFT Provides $15,000 in down payment assistance for buyers in the Inland Empire that is forgiven after 5 years .and do not have to be first time home buyers.
Not Sure Which Program is Best?
If you re not sure which program will help you qualify for the most, has the lowest rate, has the lowest payment, lowest down payment requirement, which one you are eligible for, or which program you will actually qualify for, don t worry, most loan officers don t know either!
Ha Ha ..just kidding, sort of ..but it can get confusing and that s exactly why most loan officers and mortgage lenders don t offer these programs. You really need a SPECIALIST who understands how to structure your mortgage and assistance program.
I would be honored if you would contact me or call (951) 215-6119 to figure out which program is best for you and compare your options side by side.
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