California Teachers and Employees

Teacher Homebuyer Program (THP) is an integral part of the City’s effort to make San Jose California’s most teacher-friendly city. The goal of the THP is to attract and retain public school teachers to provide a quality education for San Jose youth. To achieve this goal, the THP offers a deferred-payment loan of $40,000 or $65,000 depending on household income.

Eligible Applicants

Income eligible full time permanent K-12 public school teachers in San Jose or a qualified border school.

Program Criteria

* Cannot currently own a home as a primary residence.
* Have a gross income that does not exceed 120% of median income for Santa Clara County, adjusted for family size. Please refer to the Santa Clara County Eligibility Criteria sheet for the eligible income levels.
* Sign up and complete a required first-time homebuyer education class. Interested teachers are strongly encouraged to contact Neighborhood Housing Services Silicon Valley (NHSSV) at 408.279.2600. Additional non-profit homebuyer education courses are offered through ACORN Housing at 408.297.3087 and Project Sentinel at 408.720.9888. Your lender may also provide an approved homeownership certificate class. Be prepared to provide the City and your lender with a copy of the certificate of completion.
* Have an acceptable credit history (this also applies to co-borrowers) and a minimum credit score of 600.

Eligible Properties

Owner occupied, single-family homes, townhomes, and condominiums located within the City of San Jose municipal boundaries. The maximum home purchase price is $732,000. However, your total monthly housing cost cannot exceed the “Affordable Housing Cost” limit as shown on the Eligible Criteria sheet. Total monthly housing expenses include:

* loan principal and interest payment
* property taxes
* insurance
* homeowners association dues
* utilities (other than phone)
* maintenance and repair

Loan Limits

The maximum THP loan amount is $65,000 or $40,000 depending on your income.

Affordability Restriction

The property will be subject to a 45-year affordability restriction. The restriction requires either:

1. The property be sold only to an income-qualified household to an affordable price, or
2. The City and the borrower(s) share any increase in equity that accrues between the date of the original purchase and the date of sale.

For more information about this loan program you may either contact the city of San Jose or complete this simple online form.

If you are an employee or a California Public School or Community College you should also consider attending this no-cost on-line class - A Complete Guide to the CalSTRS 80/17 Home Purchase Program

The Faculty & Staff Homebuyer Program (FSHP) is a unique partnership between the City of San Jose, San Jose State University, and Spartan Shops. The goal of the program is to recruit and retain SJSU faculty and staff members to provide a quality education and experience for SJSU students and the surrounding community.” The FSHP offers a deferred-payment loan of up to $60,000 for permanent faculty and staff SJSU. Click here to download a complete Program Handbook.

Eligible Applicants

Income eligible full time permanent faculty & staff at San Jose State University (SJSU).

Program Criteria

• The FHP is NO longer limited to newly hired faculty members.
• Cannot own a home as a primary residence.
• Have a gross income that does not exceed 120% of median income for Santa Clara County, adjusted for family size. Please refer to the Santa Clara County Eligibility Criteria sheet for the eligible income levels.
• Sign up and complete a required first-time homebuyer education class. Interested homebuyers should complete a pre-purchase homebuyer education class through Neighborhood Housing Services Silicon Valley (NHSSV). Please call NHSSV at 408.279.2600 to schedule the workshop. Be prepared to provide the City and your lender with a copy of the Certificate of Completion
• Have an acceptable credit history (this also applies to co-borrowers) and a minimum credit score of 600.

Eligible Properties

Owner occupied, single-family homes, townhomes, and condominiums located within the City of San Jose municipal boundaries. The maximum home purchase price is $732,000. In addition, your total monthly housing cost cannot exceed the “Affordable Housing Cost” limit as shown on the Eligibility Criteria sheet. Total monthly housing expenses include:

• loan principal and interest payment
• property taxes
• insurance
• homeowner association dues
• utilities (other than phone)
• maintenance and repair

Loan Limits

The maximum FSHP loan amount is $60,000. The Housing Department may approve a lower amount, based on your housing-to-income ratio and the amount of liquid assets that will be available after the close of escrow

Loan Terms

The FSHP loan is due and payable in 45 years or upon transfer of the title.

Affordability Restrictions

The property will be subject to a 45-year affordability restriction. The restriction requires either:

1. The property be sold only to an income-qualified household at an affordable price, or
2. The City, Spartan Shops, and the borrower share any new increase in equity that accrues between the date of the original purchase and the date of sale. If the borrower prepays the FSHP loan and remains the homeowner, the affordability restriction will remain in effect.

For more information about this loan program you may either contact the city of San Jose or complete this simple online form.

If you are an employee or a California Public School or Community College you should also consider attending this no-cost on-line class - A Complete Guide to the CalSTRS 80/17 Home Purchase Program

It’s official folks, the bottom of the market is all around us.  First time home buyers and investors pour into the market as home prices continue to plummet.

Here is an article that appeared in the OC Register on November 18th, 2008:

“Bargain-basement sales helped pull down home prices in the SoCal region last month and boosted the number of transactions by a record 67%, DataQuick reported today.

The median price of a Southern California home fell to $300,000 in October — the lowest since April 2003 and down 41% below the peak price hit in the spring and summer of 2007.

The record gain in sales was attributable to very weak sales last year and high foreclosures this year. Since sales fell to record lows a year ago — remember the twin meltdowns in the mortgage market last year? — October’s gain was a percentage record. But at 21,532 transactions, the total still was 12% below average, DataQuick reported.

Record foreclosures also boosted sales while pulling down prices. DataQuick’s figures show that half of October’s sales were recently foreclosed homes. In Orange and Los Angeles counties, foreclosed homes accounted for four out of 10 sales. Lower-priced neighborhoods, where foreclosures predominate, made up the lion’s share of last month’s sales figures.

For example, a third of all SoCal sales last month occurred in the Inland Empire, where foreclosures accounted for two out of every three transactions. The median home price in those counties dropped below $230,000 last month, or almost half of the median sale price at the market peak.”

Once again, It is my contention that this is the bottom of the market for most areas in the State of California.  Credit continues to be available for first time home buyers and there is no better time than now to take advantage of this market.

If you would like more information about foreclosed homes in your area and low to no down payment loan options available to you, either give us a call at 1-866-667-6724 or complete this simple on-line form for more information