Teacher Home Loan Program Offers Down Payment Assistance
Are you a teacher or a school employee thinking of buying a home? Is down payment a hurdle?
Rejoice! The California Housing Finance Agency (CalHFA) offers a great home loan program for teachers, administrators, school district employees and staff members working for any California K-12 public school, which includes Charter schools and county/continuation schools.
The home loan program offers a junior or subordinate loan of up to 4% of the purchase price, and can only be combined with an eligible CalHFA first mortgage loan. The subordinate loan can only be used by the borrower for down payment assistance and/or closing costs.
Here are some of the guidelines for the mortgage program for teachers and school employees:
- You must be a first-time homebuyer
- Occupy the property as a primary residence; non-occupant co-borrowers are not allowed.
- You must complete homebuyer education counseling
- Meet the income limits
- You must be currently employed in a California K-12 public school, Charter school, county/continuation school or its school district.
- Sales price of the home cannot exceed CalHFA’s sale price limit
- Be a single-family, one-unit residence, including approved condominium/PUDs
- Condominiums must meet the guidelines of the first mortgage
- Manufactured housing is permitted
- Maximum property size is 5 acres
According to CalHFA, a first-time homebuyer is defined as someone who has not owned and occupied their own home in the last three years. That means if you’ve never owned a home, you’re a first-time homebuyer.
If you owned your home three or more years ago, but sold it, you are right back to being a first-time homebuyer again and you may qualify for the teacher and school employee home loan program.
If you like me to connect you with a mortgage lender to find out if you qualify for this exciting home loan program for teachers and school employees, please complete the form below.