California Teachers Home Buying Program

Jul
06

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I get asked about the California teachers home buying program all the time. This program gets a lot of pass it on by way of mouth coverage and so it’s easy to get things mixed up about the California teachers home buying program. Contrary to kitchen table myth, the government will not buy every California teacher their first home. Let us get to the details about the program.

California Housing Finance Agency

The California Housing Finance Agency was created in 1975 and is a bank. This bank will give lower interest rate loans for teachers to buy a house. The bank makes up the shortfall, that is the difference between the interest rate they have to pay to borrow the money from another bank and the interest rate they charge a teacher, by the sale of tax-exempt bonds.

Who Qualifies For The California Teachers Home Buying Program?

You must be currently employed in a public or charter school that scores in the lower 50% on the statewide Academic Performance Index rank (API ranks 1-5). This is the requirement that turns many people off. Here the agency exposes itself for what it really is, a way to get people to teach in poor and sometimes dangerous neighborhoods.

Next, you must hold an appropriate credential for a teacher, administrator, staff member or classified employee. You must intend to work for three years continuously from the date of the loan in that poor and sometimes dangerous neighborhood.

These neighborhoods generally tend to have high populations of African American and Hispanic people and as such, Caucasian people stick out like a target in these areas. Several of my Caucasian friends really need help with buying a home but are too afraid of teaching in these areas, especially at the High School level, and I do not blame them. The California teachers home buying program is mostly used by Asian, Hispanic, and African American teachers in California.

Next, you must be a first-time homebuyer, defined as a person(s) who has not owned and occupied their primary residence during the previous three years.

Then, you must be within CalHFA defined income limits. CalHFA loan programs have income

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