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