California Extra Credit Teacher Home Purchase Program: ECTP

California Extra Credit Teacher Home Purchase Program: 2025 Guide for Teachers Buying a Home

If you work in education and dream of buying your own home in California, you’re in luck. The California Extra Credit Teacher Home Purchase Program (ECTP) is made just for you. This program gives teachers and school staff a hand with down payments and closing costs, making it easier for them to buy a home.

Let’s break it down so you know exactly how it works, why it matters, and how to apply through Gustan Cho Associates.

What Is the California Extra Credit Teacher Home Purchase Program?

The California Extra Credit Teacher Home Purchase Program is a special down payment assistance program from CalHFA (California Housing Finance Agency). It offers help to public school teachers and school employees who are first-time homebuyers. The goal is to make homeownership easier and more affordable for those who work in education.

The program provides a junior loan—that means it’s a second mortgage—of up to $15,000 to help cover your down payment and/or closing costs.

Who Can Qualify for the California Extra Credit Teacher Home Purchase Program?

To qualify for the California Extra Credit Teacher Home Purchase Program, you must:

• Be a first-time homebuyer (you haven’t owned a home in the past 3 years)
• Be employed in California as one of the following:
  • Public school teacher
  • School administrator or principal
  • Classified employee or staff
  • Employee of public charter schools, county schools, or continuation schools
• Plan to live in the home you’re buying (no investment or vacation properties)
• Take and complete a homebuyer education course approved by CalHFA
• Just like the California Mortgage Credit Certificate Program, the California Extra Credit Teacher Home Purchase Program requires both the home buyer as well as the property to be dually eligible.

Remember, ECTP can only be used when you pair it with a CalHFA first mortgage loan.

How Much Down Payment Help Can You Get?

The ECTP junior loan gives you between $7,500 and $15,000, depending on where the home is located in California. This money goes toward your down payment or closing costs—two of the biggest barriers to homeownership for teachers and school staff.

This is not a grant, and you will have to repay the ECTP loan, usually when you sell or refinance your home.

2025 Updates You Should Know

• Income Limits: CalHFA yearly updates the income limits. To qualify, your household income must be below your county’s cap. These limits depend on how many people live in your household and differ by location.
• Sales Price Limits: The home’s purchase price must stay within county-specific limits set by CalHFA.
• Interest Rates: ECTP interest rates vary by lender and credit profile. CalHFA doesn’t lend the money itself. Private lenders, like Gustan Cho Associates, originate and fund the loans.
• CalHFA Homebuyer Education: Before closing, at least one borrower must complete an approved online or in-person homebuyer education course.

Property Requirements for ECTP

Not all homes qualify under the California Extra Credit Teacher Home Purchase Program. Here are the property rules for 2025:

• Must be a single-family home (attached or detached)
• Condos and PUDs are allowed (must meet lending and insurance rules)
• Manufactured homes are not allowed
• No co-ops, leaseholds, or land trusts
• The maximum lot size is 5 acres

Must be owner-occupied—you need to live in the home full time.

How ECTP Works with CalHFA Loans

You cannot use the California Extra Credit Teacher Home Purchase Program by itself. You must combine it with a CalHFA first mortgage, such as:

• CalHFA FHA Loan
• CalHFA Conventional Loan

That first mortgage covers most of your purchase price. Then the ECTP loan fills the gap, helping with your down payment and/or closing costs. This makes it easier to buy a home without needing a large amount of cash saved up.

How to Apply for the California Extra Credit Teacher Home Purchase Program:

Applying is easier than you think. Here’s a simple step-by-step process:

1. Contact Gustan Cho Associates – We’ll help you get pre-approved and check if you meet the CalHFA and ECTP guidelines.
2. Take the CalHFA Homebuyer Education Course – One borrower must complete this.
3. Find a Home That Qualifies – We’ll help make sure the home is within CalHFA’s price limits.
4. Apply for the CalHFA First Mortgage – We handle this for you.
5. Layer the ECTP Loan on Top – We add the second loan for down payment help.
6. Close and Move In!

Why ECTP Is Important for California Teachers

If you’re a teacher or school worker in California, you know housing costs are high. Saving for a down payment can feel very difficult, especially in cities like Los Angeles, San Diego, or San Francisco. The California Extra Credit Teacher Home Purchase Program can help make this goal a reality.

It helps you:

• Buy sooner rather than waiting years to save up
• Reduce out-of-pocket costs at closing
• Afford a safe and stable place to live near your school
• Put your money toward buying your own place instead of just paying rent.

Case Example: Meet Mrs. Lopez, a California Public School Teacher

Mrs. Lopez is a 5th-grade teacher in Riverside County. She’s been renting for years and wants to buy a home near her school. She hasn’t owned a home in the past 5 years, so she qualifies as a first-time homebuyer.

Her income is under the county’s CalHFA income limit. She finds a home priced within the area’s sales price cap.

With the help of Gustan Cho Associates, she gets approved for a CalHFA FHA loan and a $12,000 ECTP junior loan to cover her down payment.

Thanks to the program, she finally became a homeowner with less stress and more peace of mind.

Why Work with Gustan Cho Associates?

We’re not your typical lender. At Gustan Cho Associates, we’re all about helping educators, first-time homebuyers, and hardworking families get the home loans they need, even if they’ve had some setbacks in the past.

• No lender overlays – If CalHFA says you’re eligible, we say yes
• Experts in teacher loan programs
• Licensed in 50 states
• 7-day availability – including nights and weekends
• Fast closings and personalized help

Final Thoughts: Start Your Homebuying Journey Today

If you’re ready to stop renting and start owning, the California Extra Credit Teacher Home Purchase Program may be what you need. Don’t wait until home prices go up again or your rent increases. Take the first step today with a trusted lender that understands teachers.

Contact Gustan Cho Associates to get pre-approved and learn more about using CalHFA and ECTP to buy your first home in California. Call us at 800-900-8569 or email gcho@gustancho.com to speak with a licensed loan officer specializing in teacher home loans.

Frequently Asked Questions About California Extra Credit Teacher Home Purchase Program:

Q: What is the California Extra Credit Teacher Home Purchase Program?

A: The California Extra Credit Teacher Home Purchase Program is a loan program that helps California teachers and school staff buy their first home by providing money for a down payment and closing costs.

Q: How Much Help Can I Get With the California Extra Credit Teacher Home Purchase Program?

A: Depending on where the home is located, the California Extra Credit Teacher Home Purchase Program can provide between $7,500 and $15,000.

Q: Who Can Apply for the California Extra Credit Teacher Home Purchase Program?

A: Teachers, school staff, and public, charter, or continuation school employees in California who are first-time homebuyers and plan to live in the home can apply.

Q: Do I have to Pay Back the Money from the California Extra Credit Teacher Home Purchase Program?

A: Yes. The money is a second loan (not a grant), and you’ll repay it when you sell, refinance, or pay off your home.

Q: Can I Use the California Extra Credit Teacher Home Purchase Program Without Another Loan?

A: No. You must use it with a CalHFA first mortgage loan, like a CalHFA FHA or Conventional loan. The ECTP loan helps cover your down payment and closing costs.

Q: What Kind of Homes Qualify for the California Extra Credit Teacher Home Purchase Program?

A: You can buy a single-family home, condo, or PUD. However, manufactured homes, co-ops, and land trusts do not qualify under the California Extra Credit Teacher Home Purchase Program.

Q: Do I Need to Take a Class to Qualify for the California Extra Credit Teacher Home Purchase Program?

A: Yes. You’ll need to complete a CalHFA-approved homebuyer education course before closing your loan.

Q: Are There Income or Price Limits for the California Extra Credit Teacher Home Purchase Program?

A: Yes. Your income and the home’s price must be within CalHFA limits for your county, which change each year.

Q: Can I Still Apply if I Work for a Public Charter School?

A: Yes! The California Extra Credit Teacher Home Purchase Program includes public charter school employees, as long as you meet the other requirements.

Q: How do I Apply for the California Extra Credit Teacher Home Purchase Program?

A: You can apply by contacting Gustan Cho Associates. They’ll help you get pre-approved, take your homebuyer course, and walk you through the process.

This blog about “California Extra Credit Teacher Home Purchase Program” was updated on July 9th, 2025.