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Connecticut Fair Alternative Mortgage Lending Initiative and Education Services Program

This program has been discontinued. The details below are posted for informational purposes only.


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 mortgage 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:

    ** 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?

    • You will be required to attend Homebuyer Counseling.

      All borrowers are required to attend a 3-hour financial fitness class prior to closing the CT FAMLIES loan with a CHFA-approved counseling agency. (See, Financial Fitness Class Schedule.)


    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.  

      • Freedom Mortgage Corporation - 800-813-9420
      • Liberty Bank - 888-570-0773
      • McCue Mortgage - 800-382-0017
      • First Niagara Bank, N.A. - 800-892-2096
      • People’s United Bank - 800-772-1090
      • The Savings Institute Bank and Trust - 800-423-0142 or  860-423-4581
      • Webster Bank - 888-681-7788


    Questions? Contact CHFA.

    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.


    Additional information

    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.

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