Connecticut Fair Alternative Mortgage Lending Initiative & Education Services (CT FAMLIES) Program

Frequently Asked Questions
And
Information about CT FAMLIES

What is an Adjustable Rate Mortgage (ARM)?

There are various types of Adjustable Rate Mortgages. The key similarity of all of the different types offered is that the interest rate charged by the lender is not a fixed rate. These mortgages allow for the interest rate to adjust at certain times during the life of the mortgage loan. The more popular forms of Adjustable Rate Mortgages offer a period of time that your rate and payment remain fixed – in some instances 1 year, 2 years, 3 years or 5 years before the rate and payment begin to adjust, usually then adjusting every 12 months. In addition there are those mortgages referred to as “Option ARMS”, “Pick-A-Pay” and/or Interest Only ARMS that allow the borrower to make reduced monthly payments.

How can I tell if I have an Adjustable Rate Mortgage?

Refer to your copy of the Note provided to you when you closed on your current mortgage. The title of the Note will indicate if it is an Adjustable Rate Mortgage.

I have a fixed rate mortgage on my home. Am I eligible to apply for CT FAMLIES?

Yes, you are eligible to apply. At this time the CT FAMLIES program is open to those who have an Adjustable Rate Mortgage or to homeowners who have a fixed rate, but must be current with their mortgage payments.

I have an interest-only Adjustable Rate Mortgage. Am I eligible for CT FAMLIES?

Yes. Interest Only, Option ARMs and Pick-A-Pay Adjustable Rate Mortgages all fall within the category of eligible non-FHA ARMs.

Since purchasing my home, I refinanced my original mortgage. Am I still eligible for the CT FAMLIES program?

If at any time in the past, you had a fixed rate mortgage on your home, you may still be eligible to refinance under the FHASecure program but would not be eligible for a CT FAMLIES loan. We encourage you to contact any one of the participating lenders as they offer the FHASecure program as well as the CT FAMLIES loan program.

Do I have to be delinquent in order to be eligible?

No. CHFA encourages homeowners facing a rate reset to refinance before they fall behind. But even if you have fallen behind due to an interest rate and payment increase, you may be eligible.

How far behind can you be on a mortgage to be eligible?

Whether you’re one month behind or multiple payments behind, as long as the delinquency is the result of your interest rate and payment increasing, you may be eligible for a CT FAMLIES mortgage loan.

I am struggling to pay my increased mortgage payment but have fallen behind on several of my credit cards. Will this disqualify me for a CT FAMLIES loan?

No. If you are late on other payments because your mortgage rate and payment increased, you may still be eligible for a CT FAMLIES loan.

What if I can’t afford the closing costs to refinance?

In addition to a CT FAMLIES first mortgage, you may be eligible for a CT FAMLIES Second Mortgage Assistance for financing of closing costs and other related expenses. You should ask your CHFA lender if you qualify for a CT FAMLIES second mortgage.

I owe more money than my property is worth. Can CT FAMLIES still help me?

In many instances, a CT FAMLIES second mortgage is available to help bridge the gap between your home’s current value and the amount owed on your current mortgage.

Exactly what is a CT FAMLIES second mortgage?

A CT FAMLIES second mortgage is a low-interest, 30-year fixed-rate mortgage that can be offered in conjunction with a CT FAMLIES first mortgage to help homeowners finance their closing costs and, in some instances, their mortgage debt when the amount available under the first mortgage is insufficient to cover the current mortgage balance, fees and closing costs.

What types of properties are eligible for the CT FAMLIES program?

Owner-occupied single family homes [including condominiums and Planned Unit Developments (PUD’s)] and owner-occupied multifamily homes up to four units are eligible.

Are there income or mortgage amount limitations that apply?

CHFA maximum income limits apply based on the location of your home and the number of individuals in your household. Please click here for income limits under Homebuyer Programs for further details.

What is the maximum mortgage amount that I can borrower to refinance my loan?

Click here for FHA maximum mortgage limits.

What will my new interest rate be?

When you refinance into a CT FAMLIES mortgage, you’ll have the security of having a 30-year fixed rate mortgage. CT FAMLIES loans carry the same low interest rate as CHFA’s Homebuyer Mortgage Program loans. Click here for the current interest rate.

How do I apply for a CT FAMLIES loan?

For further information on the CT FAMLIES program and to see if you qualify, contact a CT FAMLIES participating lender (see list below):

CT FAMLIES LENDERS

What if I don’t qualify for CT FAMLIES or FHA programs?

Homeowners are encouraged to contact the HOPE Hotline at 1-888-995-4673. The HOPE Hotline has counselors who will determine what agency can best assist you. The HOPE Hotline provides free counseling 24 hours a day, seven days a week, in both English and Spanish and links callers, as appropriate, with their mortgage lender servicer or an enrolled NeighborWorks® Organization for additional counseling.

Are there any programs for people already in foreclosure?

It is possible that CT FAMLIES may help homeowners already in foreclosure, but each situation is unique and eligibility depends upon the value of your home and how much you owe, and if the servicer of your loan is willing to offer a second mortgage. CHFA has partnered with many counseling agencies. Homeowners facing foreclosure are strongly encouraged to talk with their lenders to determine the best course of action. Click here for a listing of counseling agencies.

To find a HUD-approved housing counselor, please contact the CHFA Call Center at 860.571.3500.

rev. 5/12/08