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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.

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:

    • Interest rate: 3.650%** (APR range 3.75 - 4.15%)
    • Fees: Origination Fees Payable to Lenders: 3.65% Rate - 1% Point; 3.75% Rate - .75% Point; 3.85% Rate - .50% Point; 4.00% Rate - 0.00% Point
    • 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 all adults that intend to occupy the home cannot exceed the limit shown for the city/town where you are purchasing the home. All sources of income must be included, except for income received by persons under age 18 and income received by dependents enrolled in a full-time undergraduate program.  


 

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

    • 1 unit homes
    • Fannie Mae approved condominiumns
    • 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 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.

American Neighborhood Mortgage (AnnieMac)
Citibank, N.A.
Citizens National Bank
Fairfield County Bank
Farmington Bank
First World Mortgage
Franklin American Mortgage Company
Homestead Funding corporation
iServe Residential Lending
Liberty Bank
Mortgage Master, Inc.
People’s United Bank
Prospect Mortgage
Putnam Bank
Rockville Bank
Savings Institute Bank and Trust
Wells Fargo Bank, N.A.
William Raveis Mortgage, LLC


 

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: 5  matches     Displaying: 1 - 5 
FileSizeType
Federal Recapture Tax Limits
This chart lists the threshold income limits for Federal Recapture Tax liability based on geographic location of the home and the number of years of ownership.
128Kpdf

HFA Preferred Program Fact Sheet
CHFA offers a first-time homebuyer mortgage loan program that offers a 30-year, fixed rate mortgage with low cost mortgage insurance coverage requirements.
713Kpdf

CHFA Homebuyer Mortgage Programs Brochure (Spanish)
This brochure provides an overview of the CHFA Homebuyer Mortgage Program, the Downpayment Assistance Program and the Rehabilitation Mortgage Loan Program.
1823Kpdf

CHFA Homebuyer Mortgage Programs Brochure
This brochure provides an overview of the CHFA Homebuyer Mortgage Program, the Downpayment Assistance Program and the Rehabilitation Mortgage Loan Program.
1772Kpdf

Listing of Targeted Areas with Census Tracts
This is a listing of Tarted Areas with Census Tracts in conjunction with CHFA Homebuyer Programs.
9Kpdf
FileSizeType
Found: 5  matches     Displaying: 1 - 5