Military Homeownership Program
Program Overview
The Military Homeownership
Program, in appreciation and
recognition of our Connecticut
military families, offers home loans
at below-market interest rates to
members of the United States
military, National Guard, veterans
and some widowed military spouses or
civil union partners.
While this program is designed to
benefit first-time homebuyers
primarily, previous home owners may
be eligible if they buy a home in a
federally
targeted area or if their prior
home qualifies for an exemption
under the Tax Relief and Health Care
Act of 2006.
CHFA is committed to helping
members of our military achieve
their dream of homeownership and
values its partnership with the
qualified lenders for this program.
Prospective borrowers may apply
directly for a Military
Homeownership 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
Military Homeownership Program .
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Military Homeownership Program Interest Rates
Currently, the Military
Homeownership Program is providing mortgages at the
following rate:
- Interest rate: 3.875%** (APR range 3.975 - 4.375%)
- Fees: Up to One Point (1% Origination Fee) * Payable to Lender
- Term: 30 years, fixed rate
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** Please note, this rate is subject
to change and additional fees may apply.
Who can
apply for a Military Homeownership
Program
loan?
Primarily, the Military
Homeownership Program is intended to
benefit first-time homebuyers who
are veterans, Active Duty or
National Guard service members of
the United States military.
Unmarried surviving spouses or civil
union partners of eligible veterans
who died as a result of military
service or service-connected
disabilities may also be eligible.
Applicants who have owned homes before may also be
eligible for this loan if they purchase a home located in
one of the
Targeted Areas in Connecticut or if they have been granted a one-time
exemption from the first-time homebuyer rule under the Tax
Relief and Health Care Act of 2006.
Loan applicants are encouraged to bring all documentation
associated with their former homes to their lender in order
to determine whether they qualify for this federal exemption
- 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 $81,000 for a household of one or two and
$93,150 for a household of three or more. 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 Military Homeownership
Program
loan?
CHFA 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. In the case when an
applicant is called to Active
Duty, he or she should contact
CHFA directly to obtain
permission to rent the home
during deployment.
An 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:
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
the
CHFA-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 Military Homeownership Program loan?
The following additional considerations
and restrictions apply to Military
Homeownership 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, CHFA offers
assistance to qualified
borrowers through the
Downpayment Assistance Program
(DAP).
Please note: A
down payment of at least 3.5 %
of the purchase price of the
home is typically required by
the mortgage insurer.
- Mortgage insurance
may be required.
Federal mortgage insurance is
required under most CHFA loan
programs. The borrower must be
insured either through the
Federal Housing Administration (FHA), the
Veterans Administration, or
the
USDA Rural Development.
However, private mortgage
insurance is permitted when a
borrower makes a 15% down
payment on a home in a
targeted area and the
mortgage exceeds FHA loan limits
but is within the CHFA sales
price limits of that area. In
addition, there are targeted
CHFA mortgage programs that are
eligible for PMI insurance.
(Your Participating Lender can
provide more detailed
information on these programs.)
Please note:
No mortgage insurance is
required when a borrower makes a
down payment of at least 20% of
the total purchase price on a
newly constructed home in a
targeted area.
- 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
Military Homeownership Program loan?
To apply for a Military
Homeownership 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.
Mailing Address:
CHFA
Attn: Single Family Underwriting
999 West Street
Rocky Hill, CT 06067-4005
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Additional Information
The following documents are
related to the Military
Homeownership Program. To open
and view the document, click on the
document title.
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