SchoolsFirst Federal Credit Union has launched a new mortgage grant program for California school employees that provides up to $7,500 toward down payment and closing costs for eligible first-time homebuyers.
Eligible members can use the funds toward the purchase of a primary residence in California through the Tustin, Calif.-based credit union's School Employee Mortgage program. To qualify as a first-time homebuyer, applicants cannot have owned a home or been listed on a property title within the past three years.
"For many school employees, the challenge isn't qualifying for a loan; it's covering the down payment and closing costs while keeping up with everyday expenses," Andrea Blais, SVP of real estate lending at SchoolsFirst, said. "By making this grant available to qualified members, we're helping remove the barrier that keeps otherwise qualified members from moving forward with buying a home."
The grant program is available to active eligible school employee members whose primary income comes from a school system. Applicants also must finance the purchase through the credit union's School Employee Mortgage program, meet income limits equal to 150% of California's median income and complete a homeownership education course through Fannie Mae. Grants are available on a first-come basis through the loan consultation process.
The program provides 30-year mortgage terms with loan amounts up to $1 million. Borrowers must finance 97% of the mortgage loan and contribute at least 1% of the down payment from their own funds.
"Credit unions are in a unique position to see what's holding members back and respond with solutions that reflect their reality," Blais said. "Programs like this are about helping school employees achieve the stability and long-term security that comes with homeownership."
Members who receive grant funding are not eligible for an additional grant in the future. Grants will be awarded through the loan consultation and approval process and applied as the final source of funding toward down payment and closing costs.
The School Employee Mortgage program also includes low down payment options and no private mortgage insurance, according to SchoolsFirst.
"We know that for many school employees, the biggest challenge is not the monthly payment; it is the upfront cost of buying a home," Blais said. "This program is designed to help close that gap and support our members at a critical moment in their homebuying journey."
SchoolsFirst, founded in 1934, serves more than 1.5 million members and focuses on serving California school employees and their families.
Joyce Moed can be reached at joyce.moed@arc-network.com.
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