Buying a home on a teacher’s salary just got easier
By Daily Press staff
Teachers who want to be homeowners might be able to realize their dreams with the help of a new government program.
Knowing how difficult it can be to buy a first home on a teacher’s salary — especially in California’s most expensive counties — the California Housing Finance Agency has announced the doubling of the downpayment assistance amount, from $7,500 to $15,000, or 3 percent of the home sales price, which ever is greater, in what’s called the “Extra Credit Teacher Program.”
The program is a special first-time home buying program designed specifically for eligible teachers, administrators, classified employees and other staff members who serve in California’s high priority schools.
The $15,000 in downpayment help is available where it is needed most — in areas where the cost of housing is out of reach for many first-time home buying teachers. The 18 counties defined by CalHFA as high cost include Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Solano, Sonoma, Monterey, San Benito, San Luis Obispo, Santa Barbara, Santa Clara, Santa Cruz, Ventura, Los Angeles, Orange and San Diego.
“In California, our dedicated teachers face the double dilemma of buying a home on a teacher’s salary, and in one of the country’s most expensive housing markets,” said Theresa Parker, executive director of CalHFA.
Since its inception in July 2001, the program has helped realize the dream of homeownership for more than 550 California educators. Eligible teachers, administrators, classified employees and other staff throughout the state’s remaining 40 counties can continue to take advantage of the program’s downpayment assistance of $7,500 or 3 percent of the home purchase price, which ever is greater. Interest on the second loan is forgiven if the borrower remains employed at a high priority school for three years, and no payments are required on the second loan until the home is either sold or refinanced.
The program downpayment assistance is combined with CalHFA’s 30-year fixed below market interest rate first loan program and also can be combined with other CalHFA deferred downpayment assistance programs to substantially decrease the borrower’s out-of-pocket expense.
CalHFA, the state’s affordable housing bank, was chartered in 1975 to meet the housing needs of low and moderate income Californians and has helped more than 120,000 families purchase their first homes. More information on program and the full complement of CalHFA homeowner-ship programs are available at 1-800-789-2432, or at www.calhfa.ca.gov <http://www.calhfa.ca.gov/>.
Originally published in the Santa Monica Daily Press print edition on January 14, 2004. Read the original PDF.