Teacher Down Payment Assistance in California: 7 Programs for Educators (2026)
California teachers and school employees can access up to 10% in forgivable down payment assistance through multiple programs. Top options include CalHFA STEAP (up to 3.5%), CalHFA Forgivable Equity Builder (up to 10% for buyers under 80% AMI, forgiven after 5 years), CalHERO (2% forgivable grant + reduced rates), and GSFA Platinum (up to 5.5%). CalSTRS members and school district employees qualify—many programs accept repeat buyers, not just first-timers.
7 DPA Programs for California Teachers
1. CalHFA STEAP
Up to 3.5%School Teacher and Employee Assistance Program – California's primary DPA for educators.
- Up to 3.5% of the loan amount for down payment
- Deferred second mortgage, 0% interest
- Pair with CalHFA first mortgage (FHA or Conventional)
- Eligible: K-12 public/charter schools, district offices, county schools
- All employees qualify—teachers, admin, support staff
2. CalHFA Forgivable Equity Builder
Up to 10%Forgivable Equity Builder Loan – CalHFA's most generous forgivable down payment assistance program.
- Up to 10% of purchase price for down payment/closing costs
- 0% interest, fully forgivable after 5 years
- Income must be below 80% of Area Median Income
- Pair with CalHFA first mortgage (FHA, VA, or Conventional)
- 660 minimum credit score required
- 8-hour homebuyer education required
3. CalHERO Advantage
2% Grant + Fee SavingsHero loan program – Replacement for discontinued CalSTRS 80/17 loan.
- 2% forgivable down payment assistance grant
- Reduced interest rates vs. market
- Waived lender fees (~$4,000 savings)
- NO first-time buyer requirement
- CalSTRS members, school staff, and retired educators all qualify
- 15-30 day close times
4. GSFA Platinum for Teachers
3.5% to 5.5%Golden State Finance Authority – Special educator benefits.
- 3.5% DPA (Assist-to-Own for CalSTRS/school district employees)
- Up to 5.5% DPA with Platinum SELECT
- +$5,000 bonus in targeted census tracts
- NO first-time buyer requirement
- Forgivable after 3 years (if you stay in home)
5. CalTAP
Up to $10,000 Cash BackCalifornia Teacher and Public Employee Home Loan Program
- Up to $10,000 cash back at closing
- Free float-down if rates drop after lock
- Lowest rate guarantee
- NO first-time buyer requirement
- CalSTRS, CalPERS, and all public employees eligible
6. Good Neighbor Next Door
50% Off List PriceHUD program – Massive discounts on qualifying properties.
- 50% discount on HUD-owned homes
- Pre-K through 12th grade teachers qualify
- Must teach at state-accredited public/private school
- Property must be in HUD-designated revitalization area
- 3-year occupancy requirement
- Limited inventory—properties listed weekly
7. Local District Programs
Varies by DistrictCheck with your school district – Many offer additional assistance.
- LAUSD, SFUSD, and other large districts may have partnerships
- Some districts offer employer-assisted housing
- County programs (NHSIE CalHOME, CityLIFT) often include teachers
- Ask HR about homebuyer assistance benefits
📚 CalSTRS 80/17 Loan Update
The original CalSTRS 80/17 combo loan was discontinued in September 2013. CalHERO was created as a replacement and offers similar benefits—reduced rates, waived fees, and down payment assistance—for current, retired, and former CalSTRS members.
Quick Comparison: Teacher DPA Programs
| Program | Amount | First-Time Required? | Best For |
|---|---|---|---|
| CalHFA STEAP | Up to 3.5% | Yes | First-time K-12 employees |
| CalHFA Forgivable | Up to 10% | Yes | Lower-income first-time buyers |
| CalHERO | 2% + fee savings | No | Repeat buyers, CalSTRS members |
| GSFA Platinum | 3.5% - 5.5% | No | Maximum DPA amount |
| CalTAP | Up to $10K cash | No | Cash back at closing |
| Good Neighbor | 50% off | No | HUD home buyers |
Search Homes in Your School District
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View Listings →Who Qualifies as an Educator?
Different programs have different definitions. Generally, these roles qualify for teacher DPA programs:
- Teachers: Pre-K through 12th grade, public and private schools
- CalSTRS Members: Current, former, and retired (automatic eligibility for many programs)
- School Administrators: Principals, vice principals, department heads
- Support Staff: Counselors, librarians, paraprofessionals
- District Employees: Administrative, maintenance, transportation
- Charter School Employees: Most programs include charter schools
- Higher Education: CSU, UC, community college, private college faculty and staff
Questions About Teacher DPA Programs?
Get personalized guidance on eligibility, program stacking, and maximizing your educator benefits.
Can I Combine Teacher Programs?
Yes, strategic layering can maximize your total assistance. Common combinations:
- CalHFA STEAP + Forgivable Equity Builder: Combine 3.5% + up to 10% if under 80% AMI income limit
- CalHERO + County DPA: Reduced rates/fees + LA County HOP or local programs
- GSFA + CalHERO: May be able to combine for maximum benefit
- Any program + MCC: Add Mortgage Credit Certificate for ongoing tax savings
Note: Layering programs may extend closing timelines to 45-60 days. Work with a lender experienced in multiple educator programs.
Frequently Asked Questions
What DPA programs are available for California teachers?
California teachers can access: CalHFA STEAP (up to 3.5%), CalHFA Forgivable Equity Builder (up to 10% for buyers under 80% AMI, forgiven after 5 years), CalHERO Advantage (2% grant), GSFA Platinum (3.5-5.5%), CalTAP (up to $10,000 cash back), and Good Neighbor Next Door (50% off HUD homes). CalSTRS members qualify for most programs.
Do I have to be a first-time homebuyer for teacher DPA programs?
Not always. CalHERO, CalTAP, GSFA Platinum SELECT, and Good Neighbor Next Door do NOT require first-time buyer status. CalHFA STEAP and Forgivable Equity Builder do require first-time buyer status (no ownership in past 3 years).
Is the CalSTRS 80/17 loan still available?
No. CalSTRS discontinued the 80/17 teacher loan program in September 2013. CalHERO was created as a replacement, offering similar benefits including reduced rates and down payment assistance for CalSTRS members.
What is the CalHFA Forgivable Equity Builder Loan?
The Forgivable Equity Builder is CalHFA's most generous DPA program, offering up to 10% of the purchase price at 0% interest. The loan is fully forgiven after 5 years of occupancy (20% forgiven each year). To qualify, your income must be below 80% of the Area Median Income for your county. Teachers who qualify can stack this with STEAP for even more assistance.
Can retired teachers use these programs?
Yes, for some programs. CalHERO and CalTAP specifically include retired educators and former CalSTRS members. If you can document previous employment in education, you may still qualify for these benefits.
Ready to Explore Teacher DPA Benefits?
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