Additional Considerations

• The origination fee is one point (one percent of the mortgage
   amount).

•  The percentage of downpayment required on a CHFA loan is determined by      the type of mortgage insurance obtained.  

Effective January 18, 2008, all CHFA loans must be submitted with FHA, RD or VA insurance or guaranty commitments. CHFA will no longer accept uninsured or PMI-insured loan applications, except for Targeted Program Exemptions and Target Area Exemptions listed below.

    1. For a FHA-insured loan, there is a  minimum downpayment requirement of
        3% of the purchase price amount.     
    2. For a VA guarantee (if applicant qualifies as a veteran), the VA will insure
        100% of the purchase price, therefore there is no minimum downpayment
        requirement.
    3. For a USDA Rural Development (RD) guarantee there is no minimum
        downpayment requirement as RD will insure 100% of the purchase price.

• Targeted Program Exemptions

• CHFA will continue to partner with nonprofit agencies and affordable
   developers to offer innovative programs for low-and-moderate
   income first-time homebuyers. Loan reservations for the following
   programs remain eligible for PMI coverage (or may be uninsured
   loans*).

          • * Empower New Haven MI HomePower Program
          • * Housing Development Fund SMARTMove Program
          •    Manchester Pilot Program
          •    CHFA UR Home Program
          •    Newly Constructed Housing
(This list may be amended as programs are developed or expanded.)

     • When applicable, PMI insurance will be accepted from the following
         CHFA-  approved PMI companies: AIG United Guaranty; Genworth
         Financial; Mortgage Guaranty Insurance Corp.; PMI Mortgage Insurance
         Co.; Radian Guaranty Inc.; Republic Mortgage Insurance Co.

•    Target Area Exemptions

       Properties located in federally designated target areas
       (or target census tracts) may be FHA, RD or VA insured or be uninsured
       with a minimum 20% downpayment. Acceptable source of funds for the
      downpayment include:

       • Borrower(s) own funds
       • Gifts
       • CHFA / HUD approved nonprofit agency DAP or Grant programs;
       • CHFA-approved Government or Municipal DAP or Grant programs.

•  Borrowers are qualified for a loan based on their income, assets,
    and credit history.  The applicant's income must be sufficient to
    cover monthly mortgage payments, real estate estate taxes, 
    insurance, and all existing long-term debt.  Adequate funds must
    be available to pay the downpayment and closing costs unless a
    Downpayment Assistance Program loan will be used.  The borrower's
    credit history must show prudent use of credit and timely repayment
    of debts.

• The borrower must occupy the CHFA-financed property throughout
    the term of the loan.

• The loan is subject to federal recapture tax if the borrower sells the
    home within nine years, there is a capital gain on the sale of the home
    and the borrower's household income at the time of the sale exceeds
    applicable limits. (Federal recapture tax occurs at the time property
    is sold, only if all three conditions apply.)

• The program interest rate is subject to change weekly;  however,
    once a borrower has reserved funds, the rate is locked** in for four
    months.

** PLEASE NOTE: The rate is locked in at the time of loan reservation for a       period of 4 months. If the rate changes after your reservation has been       made, you are not allowed to change your interest rate, as it is locked in.

Contact
Single Family Underwriting (860) 571-3502