Home Loans for Teachers in California

I’m Michael DiVita (DRE #01372066 | NMLS #241655), owner of DiVita Home Finance (DRE #01818285 | NMLS #323700) in Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. I’m known as a creative mortgage broker: when a bank says no, I find the lender and the loan structure that can say yes. I work with teachers and school employees regularly, and the most useful thing I can do is separate what’s real from what’s marketing. Call (800) 239-1103.

There’s no active CalHFA mortgage just for teachers in 2026 — CalHFA folded its old School Teacher and Employee program into MyHome in 2020. What California teachers can use is CalHFA MyHome Assistance (up to 3.5% with a CalHFA FHA loan), the Dream For All shared appreciation loan for first-generation buyers when funded, GSFA Platinum, local programs, HUD’s Good Neighbor Next Door (50% off select HUD homes near your school), VA loans for veterans, and low-down-payment FHA and conventional loans.

Programs Available to California Teachers in 2026

What Happened to the CalHFA School Teacher Program?

Older articles (including earlier versions of pages on this site) describe a CalHFA “School Teacher and Employee Assistance Program” with up to $10,000 of extra help. CalHFA ended it as a separate program for loans reserved on or after March 2, 2020. School employees now use MyHome Assistance like other first-time buyers — without the old $10,000 cap. Any page presenting the School Program as open today is out of date.

CalHFA MyHome Assistance

MyHome is a deferred-payment junior loan: no monthly payment, repaid when you sell, refinance or pay off the first mortgage. It’s available only with a CalHFA first mortgage — up to 3.5% of the price or appraised value with CalHFA FHA, or 3% with CalHFA conventional. You must be a first-time buyer, live in the home, stay within CalHFA’s county income limits, and complete homebuyer education. On a $650,000 purchase, 3.5% is $22,750 toward the down payment and closing costs.

CalHFA Dream For All

For teachers who are also first-generation homebuyers, Dream For All can provide up to 20% of the price (capped at $150,000) with no monthly payment. You repay the amount plus a share of the home’s appreciation — up to 20%, or 15% for households at or below 80% of area median income. It’s paired only with CalHFA’s Dream For All Conventional first mortgage. The 2026 application window ran February 24 – March 16, 2026. Full details: Dream For All guide.

HUD Good Neighbor Next Door for Teachers

Teachers are one of the professions eligible for HUD’s Good Neighbor Next Door program, which sells select HUD-owned homes in revitalization areas at 50% off the list price. HUD’s requirements:

• You’re employed as a full-time teacher by a state-accredited public or private school serving students in pre-kindergarten through 12th grade.
• Your school serves students from the area where the home is located.
• You commit to living in the home as your sole residence for 36 months. The discount is secured by a silent second mortgage with no interest or payments if you meet that commitment.

Homes are listed for seven days, with a random lottery if more than one eligible buyer bids. Inventory in California is thin and often isn’t near where teachers work, so treat GNND as a bonus to check, not the plan. Classified staff and administrators who aren’t full-time teachers don’t meet HUD’s definition.

Beware of “Teacher” Branded Programs

You’ll see private programs with names like “Teacher Next Door” or “hero” home loans. These are run by private companies, not HUD or the state. Some offer real grants or rebates, but amounts depend on location and funding. If anyone promises you a specific grant, get it in writing and compare the full Loan Estimate — rate, fees and credits — against other options. Union members should also check CTA or local union benefits for credit union offers.

Which Loan Works Best for Teachers?

• FHA with CalHFA MyHome. Often best for first-time buyers with limited savings and credit of 640 or higher (CalHFA’s minimum for its FHA loans); below 640, a standard FHA loan without CalHFA assistance can go down to 580. FHA mortgage insurance usually lasts for the life of the loan with less than 10% down, so plan to refinance once you have equity.
• Conventional. With stronger credit, conventional can cost less than FHA. 3% down works on loans up to $832,750; high-balance loans up to your county limit need 5%. Mortgage insurance can be removed once your balance reaches 80% of the original value.
• VA. If you served, zero down and no monthly mortgage insurance usually beat everything else. See VA loans in California.

How Teacher Income Is Counted

• Contract salary. Lenders use your annual contract salary, whether your district pays over 10 or 12 months — a summer break is not a gap in employment when you’re returning under contract.
• New teachers. A signed contract plus your credential program or school history can satisfy the employment-history requirement even if you don’t have two years of W-2s.
• Stipends and extra-duty pay. Coaching, department chair, summer school and tutoring income can count when documented and likely to continue, usually with at least a 12-month to two-year history.
• Substitute and part-time teachers. Hourly or per-day pay is variable income and is averaged over your history.
• Two incomes. A spouse or co-borrower’s income is added in, which is how many teachers buy in expensive counties.

What Can a Teacher Afford?

Estimates for a single borrower with no other monthly debts, 10% down, a 6.75% 30-year fixed rate, property tax of about 1.1% of the price and $150/month for insurance — before mortgage insurance. Your numbers will differ.

Many lenders allow debt-to-income ratios above 43% with strong credit or reserves — Fannie Mae’s automated underwriting goes up to 50% — so these are conservative. See how much house you can afford.

Strategies for Expensive Markets

• Buy where the numbers work and commute. Teachers in Bay Area and coastal districts often buy in more affordable nearby cities.
• Buy a duplex. FHA allows 2–4 unit owner-occupied purchases with 3.5% down, and projected rent from the other unit can help you qualify.
• Consider an ADU property. Some programs count rental income from an accessory dwelling unit. See ADU income and mortgage qualification.
• Layer assistance with a family gift. MyHome plus a gift can bring cash to close close to zero.

Frequently Asked Questions

Is there a CalHFA program just for teachers?

Not anymore. CalHFA ended its School Teacher and Employee Assistance Program as a separate program in March 2020. Teachers now use CalHFA MyHome Assistance and, when funded, Dream For All, under the same rules as other first-time buyers.

Can teachers use Good Neighbor Next Door in California?

Yes, if a HUD-owned home is listed in a revitalization area served by your school and you’re a full-time pre-K–12 teacher at a state-accredited school. You must live in the home for 36 months. California inventory is limited.

How much down payment help can a teacher get?

CalHFA MyHome provides up to 3.5% of the price with a CalHFA FHA loan (3% with conventional). GSFA Platinum provides up to 5.5% of the loan. First-generation buyers selected for Dream For All can receive up to 20%, capped at $150,000.

Do lenders count summer months as a gap in employment?

No. If you’re returning under contract, lenders use your annual contract salary whether it’s paid over 10 or 12 months.

Can a teacher buy a home with no money down?

Veteran teachers can with a VA loan. Other teachers can get close by combining an FHA loan with CalHFA MyHome or GSFA Platinum and, if available, a family gift, though closing costs still have to be covered.

Do teachers get a mortgage rate discount?

There’s no government rate discount for teachers. Some lenders and private programs offer fee credits or rebates; DiVita Home Finance offers a complimentary appraisal to educators. Compare full Loan Estimates to see what’s actually cheaper.