CalHFA School Teacher and Employee Assistance Program (STEAP)

What is CalHFA School Teacher and Employee Assistance Program (STEAP)?

CalHFA School Teacher and Employee Assistance Program (STEAP) is a deferred second loan for homebuyers in California.

• Up to 3.5% of purchase price as a deferred-payment silent second (2.5% interest) for K-12 California public/charter school employees including teachers, administrators, and support staff. Must be used with CalHFA first mortgage.
• Up to 3.5% of purchase price in assistance.
• no monthly payments on DPA.
• Funding comes from State.

How much assistance does it provide?

CalHFA School Teacher and Employee Assistance Program (STEAP) provides assistance worth 3% of the purchase price, as set by the program.

• The program asks buyers to contribute 1% of purchase price (borrower minimum).
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

CalHFA School Teacher and Employee Assistance Program (STEAP) is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Sale, refinance, or payoff of first mortgage.
• The assistance is recorded in Second position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

CalHFA School Teacher and Employee Assistance Program (STEAP) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

CalHFA School Teacher and Employee Assistance Program (STEAP) limits household income to 120% of the area median income, which varies by county and household size.

• Contact program provider for current income limits.
• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

CalHFA School Teacher and Employee Assistance Program (STEAP) caps the purchase price at $765,000.

• Eligible property types include Single-family (1-4 unit), FHA-approved condominium, townhome/PUD.
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

CalHFA School Teacher and Employee Assistance Program (STEAP) names educators among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

CalHFA School Teacher and Employee Assistance Program (STEAP) serves buyers purchasing anywhere in California.

How do you apply?

Applications for CalHFA School Teacher and Employee Assistance Program (STEAP) go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through HUD-approved homebuyer counseling agency.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through CalHFA Lender Portal (CLMS), and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.