California Extra Credit Teacher Home Purchase Program

California Extra Credit Teacher Home Purchase Program: ECTP

Gustan Cho Associates are mortgage brokers licensed in 48 states

Home Buyer’s Down Payment Assistance Program For Educators With The California Extra Credit Teacher Home Purchase Program

The California Extra Credit Teacher Home Purchase Program, commonly referred to as ECTP, is a home buyer assistance program for teachers:

The following government employees in the state of California are eligible:

  • school teachers
  • school administration employees and executives
  • other school employees from any school district throughout the state of California which offers public education for students from Kindergarten to the 12th grade
  • The ECTP home purchase assistance program is not just for California Kindergarten to twelve-grade public school employees
  • It is also extended to employees of California charter schools as well as county schools and continuation schools
  • All applicants for the ECTP needs to be first time home buyers

In this article, we will discuss and cover ECTP.

How Much Can A First Time Home Buyer Qualify For Down Payment Assistance With The ECTP

First time home buyers can get ECTP first time home buyer junior loans ranging from a low of $7,500 to $15,000.

  • The amount first time home buyers under the California ECTP would get will depend on the particular location in where the property being purchased is located
  • First time home buyers applying for the California ECTP can only receive the ECTP funds if it is in combination with an eligible California Housing Finance Authority home loan which is in the first position
  • All California ECTP is not free

It is a second mortgage loan program that can only be used for the down payment of a home purchase for first time home buyers.

Eligibility Requirements For California ECTP

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.

The Requirements For The Borrowers Are The Following:

  • Homebuyers under California ECTP needs to be a California first-time home buyer
  • The definition of a first time home buyer in California is a home buyer who has not had any ownership to a California home in the past three years
  • All California ECTP first time home buyers need to purchase a home they intend on occupying
  • Cannot qualify for a second home or investment home loan with California ECTP
  • All ECTP home buyers need to enroll and complete the California home buyer education course
  • Upon completion of the CalHFA approved housing counseling course, the home buyer will receive a certification of completion certificate
  • It needs to be presented when applying for the CalHFA approved California ECTP
  • These courses are available throughout the year through CalHFA approved first time home buyers counseling organizations throughout the state of California
  • The California first time home buyer education course needs to be completed by only one owner occupant first time home borrower on a mortgage loan application
  • Just like the ECTP, all CalFHA programs, including the California Extra Teacher Home Purchase program has maximum income limits
  • Only active employees of the California public school system as well as California County and continuation schools and/or its school districts are eligible to be participants of the California Extra Credit Teacher Home Purchase Program

Overlays may apply where the mortgage lender may have additional mortgage requirements on top of those required by the California Housing Finance Authority, CalHFA.

Property Requirements For California Extra Credit Teacher Home Purchase Program

what are the Property Requirements For California Extra Credit Teacher Home Purchase Program

The Property Requirement Guidelines For The California Extra Credit Teacher Home Purchase Program are the following:

  • The subject property cannot have a sales price that exceeds the California Housing Finance Authority Sales Price Limits
  • The sales price limits are set by the CalHFA for each county throughout the state of California
  • The owner-occupied property needs to be a detached one unit single-family home
  • Approved condo units and PUD units are eligible
  • Condominium units need to meet the requirements and lending requirements of the first position mortgage lender
  • Manufactured homes do not qualify with the California Extra Credit Teacher Home Purchase Program.
  • The maximum lot size allowed is capped at 5 acres
  • Leaseholds and Land Trusts, as well as Co-Ops, do not qualify under California Extra Credit Teacher Home Purchase Program
  • Just because you are approved for the California Extra Credit Teacher Home Purchase program does not mean it is guaranteed to fund

The CalHFA needs the blessings and approval of the mortgage lender and mortgage insurance company of the property.

What Are The Interest Rates For CalHFA Down Payment Assistant Programs

The interest rates are not set in stone and varies on the borrower’s credit and income profile.

  • California Housing Financial Authority is not a lender and does not originate nor fund loans to individual home buyers
  • Private mortgage lenders will originate and fund loans and as long as it meets CalHFA lending guidelines, CalHFA will purchase these closed loans

The interest rates, fees, and costs on these loans will depend on the individual lender.

How Can Apply For The CalHFA Down Payment Assistance Program?

If you are a California resident and are interested in learning more about the California first time home buyers assistance program, contact Gustan Cho Associates.

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