Rehabilitation Mortgage Loan Program

Please note:
Savings Institute Bank and Trust is currently the only CHFA lender originating CHFA Rehabilitation Mortgages. They originate loans in Windham, Tolland or New London County areas East of the Connecticut River only.   
 tel: 860-456-6594

A Rehabilitation Mortgage Loan can finance the purchase or refinance of a home in need of repair. In the case of a home purchase, the Rehabilitation Mortgage Loan funds the home purchase price along with the expenses for renovation. When used to refinance a home, the Rehabilitation Mortgage Loan amount includes the funds to pay off the existing first mortgage as well as the cost of repairs. After the loan closing, the funds for the home repairs will be held by the lender in a separate escrow account. Payment is made directly to the general contractor as repair work is completed. All work must be done by a state-registered general contractor.

Eligible Borrowers
Household income limits apply to all purchasers with one exception: In targeted areas, over-income households may still apply for CHFA financing without regard to the income limits.

Eligible Properties
The following types of homes are eligible for Rehabilitation Mortgage Loan financing:
• existing one- to four-family homes
• deteriorated homes where 75% of exterior walls exist
• existing multi-unit dwellings to be converted into one- to
four-family homes

Please note: Condominiums and mobile homes are not eligible.
The total acquisition cost including the cost of rehabilitation of the home must be below the CHFA sales price limits for the applicable town.

Eligible Improvement/Repairs and Considerations