Connecticut Fair Alternative Mortgage Lending Initiative
and Education Services Program
Overview
The Connecticut Fair Alternative Mortgage Lending Initiative
and Education Services Program (CT FAMLIES) offers to
refinance first mortgage loans for
Connecticut homeowners who are delinquent or anticipate
becoming delinquent and who would
benefit from refinancing their mortgage into more
affordable 30-year fixed-rate mortgages.
In addition, the CT FAMLIES
program offers second mortgage
loans in conjunction with the first
mortgagere loan.
The second mortgage can be used to pay closing costs, back
taxes and other arrearages. In addition, the second
mortgage can be applied towards any gap between the
appraised value of the home and what is owed on the home.
CHFA is
committed to helping Connecticut’s homeowners who are facing
financial hardship. Homeowners who believe
they might benefit from a CT FAMLIES Program mortgage loan should
apply directly with a CHFA CT FAMLIES participating
lender. (See, CT FAMLIES
participating
lenders.)
Follow the links below for more information
regarding the Connecticut Fair Mortgage Lending Initiative
and Education Services Program
|
|
CT FAMLIES Program Interest Rates
Currently, the CT FAMLIES Mortgage
Program is refinancing mortgages at the
following rate:
- Interest rate: 4.000%** (APR range 4.1 - 4.5%)
- Fees: Up to 1.5 points (1.5% Origination Fee) *Payable to Lender
- Term: 30 years, fixed rate
|
** Please note, this rate is subject
to change and additional fees may apply.
Who can apply for a CT FAMLIES Program
mortgage loan?
Eligible homeowners under the CT FAMLIES Program are
those who own one home that they occupy year-round as a
primary residence. They are currently delinquent
or anticipate becoming delinquent on their mortgage due to an extenuating circumstance or rate
increase. In addition, eligible homeowners have
a household income within the CHFA’s
income limits.
Household income includes the before-tax income of all
adults, 18 or older, who are not full time students and are
living in the home.
Please note: Income limits do not apply
to any applicant whose home is located in a designated
targeted area census tract in Connecticut.
(See,
Targeted Areas.)
- Applicants must demonstrate financial
responsibility prior to hardship.
- Homeowners who are delinquent or who anticipate
becoming delinquent on their mortgage payments must demonstrate that
their delinquency is the result of a financial
hardship caused by
circumstances beyond their control.
The eligible homeowners must also demonstrate that their loan
payment history was current for the six months
preceding the onset of their hardship. If they are
unable to do so, the lender will review their
payment record for the last 12 months to determine
whether their payment history is acceptable under
the program. (Your CT FAMLIES
paticipating lender can advise you as to whether you
meet these conditions.)
Homeowners that do not meet the CT FAMLIES eligibility
requirements may contact a CHFA-approved Housing Counseling
Agency to explore other options that may be available. (See,
Homebuyer Education for a list of agencies near you.)
What types of
mortgages are eligible for a CT FAMLIES
refinance mortgage loan?
All types of mortgages are eligible to be considered for
a CT FAMLIES refinance.
What types of
property can you finance with a CT FAMLIES refinance
mortgage loan?
The CT FAMLIES Program requires that applicants eligible
for this program have homes that meet property, appraisal and inspection guidelines.
- Property Guidelines
In order to qualify for this program, the property must
be the applicant’s primary and only residence where the
applicant lives year-round. The applicant may not use the
loan to refinance recreational, vacation, investment,
commercial or rental properties. No part of the refinanced
property may be designed for commercial purposes.
In
addition, the property must meet one of the definitions
listed below:
- Single-family home
- Two- to four-family home, as long as the
borrower is an owner-occupant of one of the units
- Condominiums or Planned Unit
Developments (PUDs)
- Appraisal and Inspection Guidelines
In order to qualify for this program, the home must have an appraised value
that supports the mortgage. The CT FAMLIES
participating lender will order a
full appraisal of the home. In the event the appraisal
indicates that the property is in need of repairs, they must
be completed prior to closing. The appraiser will perform
an inspection of the repairs and provide a satisfactory
repair inspection report to the Participating Lender. The
homeowner is required to pay for the repair inspection when
one is necessary.
What is the maximum you can borrow under the CT FAMLIES
Program?
CHFA sales price limits determine the maximum mortgages
available under the CT FAMLIES Program by the county where
the home is located. Furthermore, the maximum mortgage on
a home cannot exceed 97% of the appraised value.
How do you qualify for a CT FAMLIES Second Mortgage
loan?
Under the CT FAMLIES Second Mortgage Assistance Program,
CHFA will provide additional financing up to $25,000 to
assist eligible borrowers when the first mortgage loan is
not enough to pay off their current mortgage, and/ or they
lack sufficient resources to pay for closing and other
costs, like back taxes and water and sewer arrearages.
To further qualify, eligible borrowers under this program
must have exhausted their financial resources, including
liquid assets, above $5,000. They must also establish that
they can afford to repay both the first and second mortgage.
What else should you know about a CT FAMLIES Program
mortgage loan?
How do you apply for a CT FAMLIES Program
mortgage loan?
Prospective borrowers under the CT FAMLIES Program may
contact one of the following CT
FAMLIES participating lenders and should be prepared to provide full
documentation of their household income and credit
obligations.
- Liberty Bank - 888-570-0773
- McCue Mortgage - 800-382-0017
- New Alliance Bank - 800-892-2096
- People’s United Bank - 800-772-1090
- Webster Bank - 888-681-7788
Prospective borrowers should first contact their
CT
FAMLIES participating lender for information on this loan program. For
additional assistance, borrowers may contact CHFA’s Customer
Call Center at 1-860-571-3500 or toll free at 1-877-571-2432.
The following documents are related
to the CT FAMLIES Program.
To open and view the document, click
on the document title. Please
note that some documents may need
client software to view the
document.
| Related Documents |
Found: 2
matches
Displaying:
1
- 2 |
|
|
Found: 2
matches
Displaying:
1
- 2 | |
|