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Homebuyer Mortgage Program

Program Overview

The Homebuyer Mortgage Program offers home loans at below-market interest rates primarily to people that have never purchased a home before.  Previous home owners might qualify for this loan if they intend to purchase a home in a federally targeted area that would benefit from an increase in home ownership.

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 Homebuyer Mortgage Program loan at their local CHFA-approved participating bank or mortgage company. (See, list of Participating Lenders near you.)    

Follow the links below for more information regarding the Homebuyer Mortgage Program.  

 

 

Homebuyer Mortgage Program Interest Rates

Currently, the Homebuyer Mortgage Program is providing mortgages at the following rate:

    • 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 a Homebuyer Mortgage Program loan?

Primarily, the Homebuyer Mortgage Program is intended to benefit first-time homebuyers that meet minimum credit, income, and employment standards.   People who have owned homes before may also qualify for a loan under this program if they plan to purchase a home located in one of 18 designated areas in Connecticut targeted for revitalization.  (See, Targeted Areas.) 

  • Who are considered first-time homebuyers?

    First-time homebuyers are those who have never purchased a home before or have not had an ownership interest in a principal residence for the past three years.

  • What are the income guidelines to qualify for this loan?
    An applicant’s annual, before-tax household income must not exceed the CHFA income limits that apply to the geographic region where the applicant intends to purchase a home.  Household income is calculated by combining the income of all resident adults, 18 or older, who are not full time students.

    The CHFA income limits do not apply for homes purchased in targeted areas, unless the applicant also borrows a loan under the Downpayment Assistance Program.
     

 

What types of property can you purchase with a Homebuyer Mortgage Program loan?

The Homebuyer Mortgage Program requires that loan applicants purchase homes that meet specific property and sales price guidelines. 

  • Property Guidelines:

    In order to qualify for this program, the applicant must use the loan to purchase a home in which he or she will reside year-round.  The applicant may not use the loan to purchase recreational, vacation, investment, commercial or rental properties. No part of the purchased property may be designed for commercial purposes.  

    In addition, the property must meet one of the definitions listed below:

    • Existing and new single-family homes, townhouses and Planned Unit Developments
    • Newly constructed homes that meet FHA’s energy efficiency standards (Ask your Participating Lender for more information.)
    • Condominiums listed on FHA's Approved Condominium List
    • Two- to four-family homes that have been used as residences for the past five years or newly constructed, two-family homes in a Targeted Area 
    • Mobile homes that meet FHA guidelines.
       
  • Sales Price Guidelines:
    In order to qualify for this program, the purchase price of a home must not exceed the CHFA sales price limit established for the specific city or town in the state where the property is located.  (See, the CHFA sales price limits.)

 

What else should you know about a Homebuyer Mortgage loan?

The following additional considerations and restrictions apply to Homebuyer Mortgage Program loans.

  • You may qualify for help with your down payment and closing costs.
    For those who lack sufficient funds to cover the upfront expenses associated with purchasing a home, assistance is available statewide for qualified borrowers through the Downpayment Assistance Program (DAP).
     
  • Mortgage insurance may be required.
    Federal mortgage insurance is required under most CHFA loan programs.  The borrower's loan must be insured either through the Federal Housing Administration (FHA), the Veterans Administration, or the USDA Rural Development

    When utilizing the HFA Preferred Loan Program, private mortgage insurance is allowed.

    No mortgage insurance is required when a borrower makes a down payment of at least 20% of the total purchase price. 
     
  • You may be required to pay a special federal tax if you sell your home within nine years.
    Under rare circumstances, CHFA mortgage loans may be subject to the Federal Recapture Tax at the time the property is sold.  The tax might apply if a borrower sells his or her home within nine years of the purchase date, makes a profit on the sale and has an income that exceeds federal recapture tax limits at the time of the sale.

 

How do you apply for a Homebuyer Mortgage loan?

To apply for a Homebuyer Mortgage Program loan, a prospective borrower should contact one of CHFA’s Participating Lenders for guidance through the loan application process.   Generally, the time from applying for the loan to closing the sale of the property is six to eight weeks.


 

Questions? Contact CHFA. 

Prospective borrowers should first contact their lender for information on this loan program.  For additional assistance, borrowers may contact CHFA’s single family underwriting department.

Phone:     (860) 571-3502
Fax:(860) 571-3550
Email:singlefamilyunderwriting@chfa.org


Mailing Address:
CHFA
Attn: Single Family Underwriting
999 West Street
Rocky Hill, CT 06067-4005


 

Additional Information

The following documents are related to the Homebuyer Mortgage Program.  To open and view the document, click on the document title. 

Related Documents Found: 19  matches     Displaying: 1 - 19 
FileSizeType
005 Approval of Assumption - 035-1195 Rev 7-14
This form approves the CHFA assumption of a CHFA Mortgage.
43Kpdf

007 Assignment of Mortgage -Sample 036-1014 Rev 10-14
An Assignment of Mortgage reference sample. CHFA is not a member of MERS (Mortgage Electronic Registration System). Recording data for both the mortgage deed and assignment of mortgage must be in the name of the Connecticut Housing Finance Authority.
13Kpdf

010 Assumption Agreement -Sample - 036-1195 Rev 7-14
This form is a sample of the mortgage assumption agreement.
51Kpdf

015 Borrower Eligibility Certificate - 014-1107 Rev6-14
This CHFA Disclosure Document is required to be signed by Borrower(s) to certify that both the borrower and the home that is being purchased meet the eligibility requirement for a CHFA loan.
161Kpdf

044 Employment Verification (Telephone) - Sample - 057-1195 Rev 8-14
This is a sample of the minimum information that must be provided when a Lender verifies a borrower's employment over the phone.
84Kpdf

080 Loan Purchase Request Form - 066-0408 Rev 7-14
This form must be completed by the Lender and faxed to the CHFA Finance Dept. to request Purchase (funding) for closed CHFA 1st and 2nd mortgage loans.
82Kpdf

100 Owner-Occupancy Inspection (PostClosing)- Sample 025-0400 Rev 8-14
This form is a certification by a Lender to CHFA that the borrower/s are occupying the residence as an eligible dwelling.
36Kpdf

115 Processing Checklist File Submission Order -009-1107 Rev 8-14
This checklist details the mortgage insurance type, standard-CHFA and product-specific CHFA loan documents in the order they must be presented in the loan application package submitted to CHFA for processing.
154Kpdf

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.
73Kpdf

170 Underwriting - Limited Documentation Compliance Checklist 009A-0808 Rev 8-14
This form lists the documents (in order) that must be submitted for streamline documentation for financing loans with ratios up to a maximum of 33%/43% with an "Accept" Risk Status in automated underwriting.
159Kpdf

CHFA APPROVED SERVICER - BOGMAN, INC REFERENCE GUIDES Rev 10-14
For loans delivered to Bogman, Inc. this summary contains their Contact Information, Transfer Guidelines, and Document Checklists.
664Kpdf

CHFA APPROVED SERVICER - U.S. BANK REFERENCE GUIDES Rev 10-14
For loans delivered to U.S. Bank, this summary contains their Contact Information and Document Checklists.
268Kpdf

Income and Sales Price Limits
This document details the income and sales price limits that are in effect in different geographic regions of the state
148Kpdf

Program Brochure - Emergency Mortgage Assistance Program (EMAP)- (Spanish) 4-2014
This brochure provides an overview of the Emergency Mortgage Assistance Program (EMAP). 4/2014
738Kpdf

Program Brochure - Emergency Mortgage Assistance Program (EMAP) 4-2014
This brochure provides an overview of the Emergency Mortgage Assistance Program (EMAP). Rev 4/2014
737Kpdf

Program Brochure - Homebuyer Mortgage Programs (Spanish) 4-2014
This brochure provides an overview of the CHFA Homebuyer Mortgage Program, the Downpayment Assistance Program and the Rehabilitation Mortgage Loan Program.
1063Kpdf

Program Brochure - Homebuyer Mortgage Programs 4-2014
This brochure provides an overview of the CHFA Homebuyer Mortgage Program, the Downpayment Assistance Program and the Rehabilitation Mortgage Loan Program.
951Kpdf

Program Fact Sheet - Teacher Mortgage Assistance Program 2014-2015
This fact sheet lists priority and transitional school districts for the program effective July 1, 2014 through June 30, 2015.
299Kpdf

Targeted Areas - Police Homeownership Program Participating Towns Rev 7-1-2013
This is a list of Town that participate in the CHFA Police Program
114Kpdf
FileSizeType
Found: 19  matches     Displaying: 1 - 19