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CITY OF OAKLAND EXTRA CREDIT TEACHER HOME
PURCHASE ASSISTANCE PROGRAM (OAKLAND TEACHER PROGRAM)
The Oakland Teacher Program provides
a below market interest rate CalHFA first loan, together with
a forgivable interest CalHFA $7,500 second loan and a third
loan, up to $20,000, from the City of Oakland to assist qualified
teachers and principals to purchase their first home. It is
designed in most cases to provide up to 100% of the financing
needed for the purchase of a home. This program is intended
to assist high priority schools in the Oakland Unified School
District recruit and retain credentialed teachers, administrators
and staff members to increase their academic standing and
thus provide pupils with high quality education. At the same
time, the Oakland Teacher Program makes homeownership a possibility
in the City of Oakland for teachers, administrators and staff
members who otherwise would not be able to purchase a home
without an affordable loan and down payment assistance. Click
here for a current list of eligible high priority schools.
THE PROGRAM PROVIDES THREE LOANS
The CalHFA first loan:
30-year Term Fixed Rate (For the first year, the interest
rate will be reduced by 1%) Below Market Rate Loan Amount
to the Maximum a Teacher or Principal can Qualify for According
to Income. Combined with: The Down Payment Assistance Second
Loan:
The CalHFA second loan:
$7,500 30-year Term Deferred Payments (no monthly payment
required) Forgivable Interest Rate from 5% to 0%*
*If the teacher or principal remains employed at a high priority
school continuously for three years, the interest rate on
the second loan will be reduced progressively to zero percent
(0%) and remain there for the term of the loan. The interest
rate on the first loan remains fixed at the initial rate for
the entire term of the loan. See further details on interest
forgiveness below in the section on "HOW TO APPLY FOR
INTEREST FORGIVENESS ON THE SECOND LOAN."
The City of Oakland Third Loan:
Up to $20,000 10 year term Deferred payments
for 5 years, amortized over the remaining term
Additionally, CalHFA will permit homebuyers
to use other CalHFA-approved down payment assistance loans
or grants to help in the acquisition of the home. Some local
housing agencies offer this type of assistance that may be
combined with the Oakland Teacher Program.
PROPERTY LOCATION AND SALES PRICE LIMITS
The property the teacher or principal
is purchasing must be located in the city of Oakland. Additionally,
each county has a maximum sales price allowable for this program.
Click here for Sales Price Limits.
TEACHER AND PRINCIPAL ELIGIBILITY
All borrowers must be first-time
homebuyers whose income does not exceed CalHFA income limits
adjusted for Alameda county and family size. Schools employing
teachers, administrators and staff members who are applying
for this program will be required to provide the lender with
a certification of school and employment eligibility.
All first-time teacher and principal homebuyers
must meet Oakland Teacher Program eligibility requirements:
a. High priority School. Currently
be employed and intends to teach or provide administration
for 3 years continuously from the date of the loan in an Oakland
Unified School District high priority School that scores in
the bottom fifty percentile (50%) Statewide Rank Academic
Performance Index ("API"), as published by the Superintendent
of Public Instruction or the Department of Education pursuant
to Ed Code § 52056.
b. Credentialed. Be a holder of an appropriate credential.
An eligible teacher, administrator or staff member is any
person who holds one of the credentials listed and issued
by the California Commission on Teacher Credentialing.
c. First-time Homebuyer. The borrower must be a first-time
homebuyer (i.e. not have owned and occupied a home in the
last three years).
d. Occupancy. The residence being purchased must be located
in the city of Oakland, and shall be intended to be the borrower's
primary residence.
e. Income Limits. The total family household income does not
exceed CalHFA Income Limits adjusted for county and family.
f. Single Family Residence Only/Sales Price Limits. The residence
being purchased and financed is a single-family residence,
condominium, or manufactured housing located within California,
and does not exceed CalHFA area sales price limits.
g. Qualify for the Loan Program. The teacher or principal
must be able to credit qualify for either a CalHFA FHA-insured,
VA Guaranteed, or Mortgage Insurance Services-insured 30 year
fixed rate first loan for the amount necessary to purchase
a home.
HOW TO APPLY FOR INTEREST FORGIVENESS ON
THE CalHFA $7,500 SECOND LOAN
Interest on the second loan may
be reduced to 0% if the teacher or principal meets continued
eligibility by remaining employed in the teaching or administrative
position at the school on a continuous basis for three years
from the date specified on the second loan documents. The
interest rate on the second loan will be reduced by 1% the
first full year, by one percent (1%) the second full year
and by three percent (3%) the third full year, at which time
it will reach zero percent (0%) and then will remain there
for the term of the loan. In the event of the borrower's termination
of employment during the first three years, the interest rate
on the second loan will accrue at the last reduced rate (if
applicable) that the teacher or principal met continued eligibility.
In order to qualify for partial or full
interest rate reduction, the principal or teacher shall produce
documentation evidencing continued eligibility to the satisfaction
of CalHFA at the end of the three-year period.
Repayment of the principal and accrued
interest on both the first and second loans shall be due and
payable at the earlier of the following events:
a. Transfer of title.
b. Sale of the residence.
c. Payoff/refinance of the first loan.
d. The property is no longer the borrower's primary residence
(subject to CalHFA hardship provisions
described in the CalHFA lending manual)
Oakland Teacher Program Credential List
(An Applicant must hold one of the following credentials
issued by the California Commission on Teacher Credentialing
)
For Teachers:
Single Subject Teaching Credential
Multiple Subject Teaching Credential
Specialist Instruction Credential in Special Education
Education Specialist Instruction Credential
Standard Elementary Teaching Credential
Standard Secondary Teaching Credential
Standard Early Childhood Education Teaching Credential
Standard Restricted Special Education Teaching Credential
General Kindergarten-Primary Teaching Credential
General Elementary Teaching Credential
General Junior High Teaching Credential
General Secondary Teaching Credential
Special Secondary Teaching Credential in Art
Special Credential for Teaching Exceptional Children
Special Secondary Teaching Credential in Business Ed
Special Secondary Credential for Teaching the Blind
Special Secondary Teaching Credential in Homemaking
Special Secondary Teaching Credential in Industrial Arts
Special Secondary Credential for Teaching Lip Reading
Special Secondary Teaching Credential in Music
Special Secondary Limited Teaching Credential in Music
Special Secondary Teaching Credential Limited in Agriculture
Special Secondary Credential for Teaching the Partially Sighted
Child
Special Secondary Teaching Credential in Physical Education
Special Secondary Speech Arts
Special Secondary Teaching Credential in Correction of Speech
Defects
Special Secondary Credential for Teaching the Mentally Retarded
For Administrators:
Administrative Services Credential
Administrative Services Credential (Examination)
Standard Supervision Credential
Standard Administration Credential
General Elementary School Administration Credential
General Elementary School Supervision Credential
General Secondary School Administration Credential
General Secondary School Supervision Credential
General Administration Credential
General Supervision Credential
The Supervision Credential
General School Principal or Supervisor Credential
For Staff Members:
School Nurse Credential
Clinical or Rehabilitation Service Credential
Pupil Personnel Services Credential
(e.g. School Counseling, School Social
Work, School Psychology and Child Welfare and Attendance)
Library Media Teacher Service Credential
Designated Subjects Vocational Education Teaching Credential
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