Eligible Improvement and Repairs

Costs for improvements and repairs must be estimated at a minimum $5,000
for the purchase of a home. Refinance loans are subject to higher minimum
repair amounts. The following lists examples of eligible rehabilitation work:

• structural alterations and repair of damage to the home, including chimneys,
   walls, roofs, and ceilings

•  repair of termite or water damage

•  changing or adding to the number of units -- for example, converting a single     family home to a duplex, or a six-unit building to a three-family home

•  items that improve energy efficiency such as plumbing, heating, and    electrical systems

•  installation or replacement of wells, septic tanks, windows, and hot water
    systems

•  repairs that substantially improve the basic livability of the home such as    flooring, roofing, handrails, downspouts, and exterior siding

•  alterations for handicapped accessibility

Additional Considerations
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.)

All other considerations under the CHFA Homebuyer Mortgage Program apply to Rehabilitation Mortgage Loans.

Contact:
Single Family Underwriting (860) 571-3502