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.