Downpayment Requirement

• Loans with less than 20% downpayment must have
   mortgage insurance or a mortgage guaranty. (Loans eligible for guarantees    from the US Department of Veterans Affairs (VA) or the US Department of    Agriculture Rural Development  (RD) may not require any downpayment.)
• The minimum downpayment is determined by the mortgage insurance used.
• Generally, a minimum of only 3% is required for a downpayment.
• Downpayment assistance loans are available statewide through the
    Downpayment Assistance Program administered by CHFA.

Downpayment Assistance Loan Terms (Second Mortgage)

You may request a loan for downpayment assistance through the State Downpayment Assistance Program (DAP). The DAP loan, which is offered at a below-market interest rate, is secured by a second mortgage on your new home.

All other considerations for CHFA Homebuyer Mortgage Program apply to Military Homeownership Program loans.

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.)

Contact:
Single Family Underwriting (860) 571-3502