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HFA Preferred Loan Program

Program Overview

The HFA Preferred Loan Program offers home loans at below-market interest rates to first-time homebuyers with low mortgage insurance costs. There are no exceptions for CHFA Income Limits in Targeted Areas with this Program. This Program cannot be combined with any other program offered by CHFA.

CHFA is committed to helping Connecticut residents achieve their dream of homeownership and values its partnership with the qualified lenders for this program.  Prospective borrowers may apply directly for a HFA Preferred Loan through one of CHFA-approved participating lenders. (See, list of Participating Lenders under the HFA Preferred Loan Program.)    

Follow the links below for more information regarding the HFA Preferred Loan Program.     



HFA Preferred Interest Rates

Currently, the HFA Preferred™ Program is providing mortgages at the following rate:

    • Non-Government Insured Interest Rate: 3.125%**(APR range 3.225% - 3.625%)
    • Fees: Additional fees may apply.
    • Term: 30 years, fixed rate

** Please note, this rate is subject to change and additional fees may apply.


Who can apply for an HFA Preferred loan?

Borrowers must be first-time homebuyers.  Eligible borrowers must have incomes that meet the requirements of CHFA income guidelines. The gross annual household income for borrower(s) cannot exceed the limit shown for the city/town where you are purchasing the home.   


What types of property can you purchase with an HFA Preferred loan?

    • 1 unit homes
    • Fannie Mae approved condominiums
    • Planned Unit Developments
    • 2-4 unit homes

NOTE:  Manufactured homes and co-ops are not permitted.

What else should you know about an HFA Preferred Loan?

The Sales price limit cannot exceed the CHFA Sales Price limits established for the city/town where you are purchasing your home, providing it does not exceed the Fannie Mae maximum loan limits.

The loan must be used toward the purchase of a primary residence, which must be owner-occupied by the borrower.  Investment or vacation properties are not allowed.

Homebuyer Education

All homebuyers must attend a minimum of a 3-Hour Homebuyer Education Class and if purchasing a 2-4 family home must also attend a Landlord Class through a CHFA/HUD approved Counseling Agency.


What are the Downpayment Requirements?

Depending on the mortgage insurer, some borrowers may be required to use their own funds towards the downpayment.  In some cases, borrowers who do not have funds saved for a down payment may utilize the CHFA Downpayment Assistance Program.  The minimum down payment may vary depending on the Mortgage Insurer.  Your Participating Lender will determine the minimum down payment requirement for you.   Borrowers who are purchasing 2-4 unit homes are required to put 3% of the purchase price as a down payment from their own funds.

What are mortgage insurance requirements?

Borrowers must pay Mortgage Insurance.  The amount of mortgage insurance is determined by credit score utilizing a respective Mortgage Insurer’s guidelines.  Your lender will review Mortgage Insurance requirements with you. 

Mortgage Insurance companies participating in this program are Genworth Financial, MGIC, Radian and United Guaranty.


How do you apply for a HFA Preferred loan?

The HFA Preferred Loan Program will be offered through the following CHFA Participating Lenders.  Contact one of the lenders listed below to apply for a CHFA HFA Preferred loan.

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LenderContact Info
LenderContact Info


Related Documents

The following documents are related to the HFA Preferred™ Loan Program.  To open and view the document, click on the document title. 

Related Documents Found: 9  matches     Displaying: 1 - 9 
120 Recapture Tax (The Federal) Notice to Mortgagor -Method to Compute - 052-1195 Rev 7-14
Notice of maximum Recapture Tax and Method to Compute on Sale of Home is required. Form must be signed and dated by borrowers providing them legal notice of the Tax due upon sale of the home during the Recapture Tax period.

122 Recapture Tax (The Federal) Notice to Mortgagor- Potential Tax 051-0597 Rev 9-14
This is a CHFA disclosure that advises the borrower of the reason for the Recapture Tax provision and the conditions under which it will be applicable.

124 Recapture Tax (The Federal) Notice to Mortgagor- Understanding Tax - 050-0597 Rev 7-14
This is a CHFA Disclosure document that the Lender is required to present to a potential borrower at the time of application to certify the applicant has been informed of the potential Recapture Tax liability associated with CHFA mortgage loan financing.

125 Recapture Tax (The Federal) Reimbursement Request - 049-0313 Rev 8-14
Form is used to request reimbursement from CHFA of the Federal Recapture Tax borrowers paid following the sale or other disposition of a residence purchased with a mortgage financed through tax-exempt bonds issued by CHFA for closings on or after 3/18/13

126 Recapture Tax (The Federal) Threshold Income Limits Chart - 048-0405 Rev 8-14
This chart lists the threshold income limits for Recapture Tax liability based on the geographic location of the home and the number of years of ownership.

Counseling Class Schedule - Pre-Closing Education Class - 1Q 2015
This chat list the 1st quarter schedules for the Pre-Closing Education classes. These classes are available to homebuyers who are getting a Downpayment Assistant Loan and have a reservation loan number for a CHFA loan.

Counseling Class Schedule - Pre-Purchase Education Class - 1Q 2015
This chart list the 1st quarter schedules for the Pre-Purchase Education classes. These classes are available to prospective homebuyers.

Program Fact Sheet - HFA Preferred Program 6-14
CHFA offers a first-time homebuyer a mortgage loan program that offers a 30-year, fixed rate mortgage with low cost mortgage insurance coverage requirements.

Program Fact Sheet - HFA Preferred Program Outline and Underwriting Guidelines Rev 12-8-14
CHFA - Fannie Mae (FNMA) HFA Preferred Program Outline and Underwriting Guidelines Rev 12-8-14
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