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Federal Home Loan Program For Teachers California
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Teachers are a fundamental part of a society, instrumental in guiding the future of children so that they become model citizens, and contribute to the progress of the society and the nation. All this they do at a salary that is not even sufficient to get them a house at rent.
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The federal government has designed certain teacher home loan programs to provide affordable housing options for teachers that live in areas where housing costs far exceed the average salaries of teachers. One such state is California. An average teacher’s salary in this state is $38,000, while the median housing rate in the entire state is $277,000. A teacher home loan makes home ownership a possibility, which would otherwise be way above the price range of an educator.
One such home loan program is the Extra Credit Teacher Home Purchase Program (ECTP) designed for eligible teachers and other employees working in the high priority schools in California. Under this program, education professionals are provided an incentive in the form of down payment assistance. This amount is not more than $7,500 or 3 percent of the sales price in average cost areas and does not exceed more than $15,000 or 3 percent of the sales price in high cost areas. The amount can be used for purchasing a home anywhere in California.
Home loans under this program are offered by lenders to those teachers who have been approved by the California Housing Agency. Interest rate on ECTP loans is low and has a fixed mortgage rate. Interest rates are federal-insured and have a repayment term of 30 years.
There are certain eligibility criteria for getting approved for an ECTP home loan. The applicant must be a US citizen and should be employed in a high priority public or charter school as a teacher. Even those applicants who provide administration or any other service to at least one high priority school are eligible. The applicant should be a first-time homebuyer and must be the primary resident in the property. Further, the applicant should have an income that should not exceed the income limits prescribed by CalHFA lender and must continue to work in the school for three consecutive years from the date the loan is issued.
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