Extra Credit Teacher Home Purchase Program

The Extra Credit Teacher Home Purchase Program (or ECTP) is designed for qualified educational sector employees such as teachers, administrators, classified employees and other staff members at high priority schools in California. 

It presents a deferred-payment junior loan that is to not be more than $7500 or 3% of the purchase price. In CalHFA-defined high cost areas, it is to not be more than $15,000 or 3% of the purchase price. Down payment assistance can be utilized through this program.

To qualify for this loan program, a person must be a first-time home-buyer who has not owned a home within the past three years. Next, the person occupying the property must use it as their primary residence. Non-occupant co-borrowers are disqualified.

A completion of a home-buyer education program and certificate of completion of the program is required. This can be done online with a fee of $50, or in-person through an approved firm.

The person also needs to meet CalHFA income limits for the ECTP. In Los Angeles County, $54,450 is the income limit for one person. Riverside County and San Bernadino County both income limits of $54,600 for a single-person household.

Specifically pertaining to this loan program’s educational requirements is the mandate that a borrower be employed at a county/continuation or high-priority school, which is a public or charter school in possession of an Academic Performance Index ranking of 1-through-5. 

The borrower also must have the appropriate credentials required for a teacher, educational administrator or staff member, or have classified employee status at their current employment. Another eligibility requirement in the ECTP is that a participant have the intention to work three continuous years from the loan’s start date at a county/continuation or high-priority school.

Not only are there requirements for borrowers themselves, there are also requirements for properties. For starters, the property’s sales price must not be greater than the county sales price limit established by CalHFA. 

In Los Angeles County, the sales price limit for a non-targeted property is $611,900 and $747,880 for targeted properties. For non-targeted properties in Riverside County and San Bernadino County, the sales limit is $347,625, while $424,875 is the limit for targeted properties.

The property also must be a single-family, one-unit residence. Approved condominiums and planned unit developments can be included, with guest houses, in-law quarters and granny units possibly being qualified.

Leaseholds, land trusts, co-ops and manufactured housing aren’t permitted, and there is a five acre maximum on the property’s size. 

To apply for the Extra Credit Teacher Home Purchase Program and receive interest rate information, it is suggested potential participants contact a Cal-HFA approved loan officer. Having personal documents such as bank statements, pay stubs, tax returns and employment history on hand when contacting a loan officer is also strongly advised.

Golden Empire Mortgage can assist you with any ECTP questions you may have at (909) 457-0257.