Home Loans for Teachers in California (2026): Every Program That Helps
Teacher home loan programs in California at a glance
| Program | What you get | Who qualifies | Where |
|---|---|---|---|
| FHA loan | 3.5% down, flexible credit (580+) | Any buyer who qualifies, including teachers | Statewide |
| Conventional 97 | 3% down; mortgage insurance can be removed later | First-time buyers (usually 620+ credit) | Statewide |
| CalHFA MyHome | Deferred second loan toward down payment & closing costs (up to 3.5% of price) | First-time buyers under county income limits | Statewide |
| CalHFA Dream For All | Shared-appreciation loan up to 20% of price, no monthly payment | First-generation buyers under income limits; awarded by lottery voucher | Statewide, when funded |
| SF Teacher Next Door | Forgivable loan: $40,000 (market-rate home) or $20,000 (below-market-rate home) | SFUSD teachers, paras and certificated staff; up to 200% AMI | San Francisco |
| HUD Good Neighbor Next Door | 50% off the list price of an eligible HUD home | Full-time pre-K–12 teachers serving that area; 36-month occupancy | HUD revitalization areas only |
| City & county assistance | Deferred or forgivable down payment loans | Varies (income, first-time buyer, sometimes local employment) | Many CA cities and counties |
| VA loan | $0 down, no monthly mortgage insurance | Teachers who are veterans, reservists or National Guard | Statewide |
Program amounts, limits and funding windows change. We confirm what's open in your county before you make an offer.
Step 1: Pick the right first mortgage
Every teacher program sits on top of a regular first mortgage, so pick that first:
- FHA (3.5% down): the best fit if your credit is under 680 or your debt-to-income ratio is high from student loans or a car payment.
- Conventional 3% down: usually cheaper for credit scores of 700+, and the mortgage insurance comes off once you reach about 20% equity. That makes it a strong long-term choice for teachers on a step-and-column salary schedule.
- VA (0% down): if you served, this almost always wins.
Step 2: Add down payment assistance
CalHFA MyHome
MyHome is a deferred second loan that covers part of your down payment and closing costs. You make no monthly payment on it and repay it when you sell, refinance or pay off the first mortgage. It pairs with CalHFA's FHA or conventional first mortgage and requires first-time buyer status, county income limits and a homebuyer education course.
CalHFA Dream For All
Dream For All covers up to 20% of the purchase price in exchange for a share of the home's appreciation when you sell or refinance. At least one buyer must be a first-generation homebuyer, and vouchers are handed out by lottery during funding rounds. See our Dream For All 2026 update for the current round.
SF Teacher Next Door (San Francisco only)
SFUSD teachers, paraprofessionals and certificated staff (counselors, nurses, librarians, speech pathologists and others) can get a forgivable loan of $40,000 for a market-rate home or $20,000 for a below-market-rate unit. There's no interest and no shared appreciation. Household income must be at or below 200% of AMI. The loan is forgiven 20% a year in years 6 through 10, and it comes due if you sell, rent out the home or leave SFUSD. It's run by the Mayor's Office of Housing and Community Development.
HUD Good Neighbor Next Door
Full-time pre-K–12 teachers can buy eligible HUD-owned homes in designated revitalization areas at 50% off list price. The discount is secured by a silent second mortgage that's satisfied after you live in the home for 36 months. Homes are listed on HUDHomeStore.gov, and buyers are chosen by lottery when several bid. In California the catch is inventory: very few eligible homes come up, so treat it as a bonus, not a plan.
Local city and county programs
Many California cities and counties run their own down payment programs, usually deferred or forgivable second loans with income limits. Some can be combined with CalHFA. Where you buy decides what's available, so tell us the city before you start house hunting.
How lenders count a teacher's income
This is where teacher files go wrong at lenders who don't do many of them:
| Situation | How it's usually handled |
|---|---|
| Paid over 10 months, or 12 months with summer deferral | Income is based on your annual contract salary, not on the summer months with no paycheck. Bring your contract or a district salary letter. |
| New teacher with a signed contract | Many programs let you close on a signed contract before your first paycheck, often if you start within about 90 days. |
| Step-and-column raise next year | Can count once it's documented in a signed contract or a district letter. |
| Stipends (coaching, department head, extra duty) | Usually need about a two-year history to count. |
| Summer school or tutoring | Usually needs a two-year history. Tutoring paid on a 1099 is treated as self-employment income. |
| Substitute or part-time | Usually needs a two-year history in the role. Hours are averaged. |
| Student loans on an income-driven plan (PSLF) | Conventional can use your documented IDR payment, even $0 on Fannie Mae loans. FHA uses your actual payment, or 0.5% of the balance if the payment is $0. With big balances, this alone can decide FHA vs. conventional. |
Example: a teacher buying a $600,000 home
Illustrative only. Your numbers depend on your county, credit and the programs open at the time.
| Item | FHA + CalHFA MyHome | Conventional 3% down |
|---|---|---|
| Purchase price | $600,000 | $600,000 |
| Minimum down payment | 3.5% = $21,000 | 3% = $18,000 |
| Covered by MyHome (up to 3.5%) | Up to $21,000 | Depends on the program |
| Your cash for the down payment | As little as $0 | $18,000 |
| Closing costs | Can be reduced with a seller or lender credit | Can be reduced with a seller or lender credit |
Teacher home buying checklist
- Signed teaching contract or district salary letter showing annual pay
- Last 30 days of pay stubs and two years of W-2s
- Two years of history for any stipend, summer school or tutoring income you want counted
- Student loan statements showing your current payment and plan (IDR or PSLF)
- Two months of bank statements for down payment and reserves
- Completed homebuyer education course (required for CalHFA and most local programs)
Frequently asked questions
Is there a special home loan for teachers in California?
No single statewide teacher mortgage exists. Teachers use FHA, conventional 3% down or VA loans and add CalHFA MyHome or Dream For All, plus local programs such as SF Teacher Next Door for SFUSD staff and HUD's Good Neighbor Next Door.
How much down payment do California teachers need?
As little as 3% with a conventional loan or 3.5% with FHA. With CalHFA MyHome or a local program covering that amount, some teachers buy with little or no cash for the down payment beyond closing costs.
Can I buy a house over the summer when I'm not getting paid?
Yes. Lenders qualify teachers on annual contract salary, so a summer without paychecks doesn't stop you. Bring your contract or a district salary letter showing you'll return in the fall.
Can a first-year teacher get a mortgage?
Often, yes. Many programs accept a signed teaching contract before your first paycheck, as long as you start within a set window (often about 90 days). Credentials and degree history support the file.
Do student loans on PSLF hurt my mortgage approval?
It depends on the loan type. Conventional loans can use your documented income-driven payment, even $0 on Fannie Mae loans. FHA uses your actual payment, or 0.5% of the balance if your payment is $0. With large balances, conventional often qualifies you for more.
Who is eligible for SF Teacher Next Door?
SFUSD teachers, paraprofessionals and certificated staff such as counselors, nurses and librarians, with household income at or below 200% of AMI, who haven't owned San Francisco residential property in the past three years. It offers $40,000 (market-rate) or $20,000 (below-market-rate) forgivable loans.
Does Good Neighbor Next Door work in California?
Yes, but only for HUD-owned homes in designated revitalization areas, and few come up in California. Eligible teachers get 50% off the list price and must live in the home for 36 months.
Can school counselors, aides and other staff use these programs?
FHA, conventional and CalHFA programs are open to anyone who qualifies, not just teachers. SF Teacher Next Door covers paraprofessionals and certificated staff. Good Neighbor Next Door is limited to full-time pre-K–12 teachers.
Tell us your district, your city and your rough budget. We'll check which programs you qualify for and build the lowest-cash option, by phone, text or email.
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