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How Can CalHFA Benefit Teachers?



May 26, 2017

The California Housing Finance Agency provides guidelines for approved mortgage lenders to help first time home buyers and low to middle income buyers finance their home using a special program called the CalHFA home loan. The Agency doesn’t approve the loan but does purchase the approved CalHFA home loan from lenders. There are several different programs within the California Housing Finance Agency developed to assist these buyers but there is also a special program specifically designed for teachers called the Extra Credit Teacher Home Purchase Program, or ECTP.

The ECTP is a secondary lien in the form of a grant ranging from $7,500 to $15,000 and can be used to fund a down payment or pay for closing costs or a combination of either but can only be used in conjunction with an eligible CalHFA loan.

In order to be approved for the ECTP loan, the borrowers must be first time home buyers which is designed for those who have not owned a home within the previous three years. Borrowers can only use the ECTP in conjunction with a CalHFA loan to buy and finance a primary residence only and cannot be used to finance a rental property or even a second home or vacation home.

There are approved home buyer education courses the borrower must complete which can be done online over eight hours or can be completed in person at an approved counselor such as a HUD approved housing counseling agency. Your loan officer can provide you with approved course providers.

While the program refers to teachers, in reality several others are also eligible. In addition for teachers of any California K-12 public school, including Charter schools, so are administrators, employees and staff members of those same schools.

In addition to requiring borrowers to fall into any of these eligible employee categories there are also income limitations for the borrowers appearing on the loan application. Your loan officer can provide you with these figures and there are also sales price limits for the homes based upon the location of the property and the type of CalHFA loan used to finance the purchase.

For more information or questions about mortgage loans, please call  (855) 757-8748.

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