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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.
•Under the Teachers Mortgager Program, you may apply for a Downpayment
Assistance Loan regardless of your assets. This
is an exception from our regular Downpayment Assistance
Program. Downpayment
assistance loans are available statewide
through the Downpayment Assistance Program administered
by CHFA. The DAP loan is secured by a second mortgage
on your new home.
All
other considerations for CHFA Homebuyer
Mortgages apply to Teachers Mortgage Assistance 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
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