Police Homeownership Program
Program Overview
The Police Homeownership Program
encourages police officers to live
in the communities where they work
by offering home loans at
below-market interest rates to
municipal
and state police officers that
purchase homes in participating
towns.
While the Police
Homeownership Program is primarily
designed to benefit police officers
who are first time homebuyers, the
program is also available to
previous homeowners who purchase
homes in federally targeted areas
that overlap with participating
towns.
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 Police 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
Police Homeownership Program .
|
|
Police Homeownership Program Interest Rates
Currently, the Police
Homeownership Program is providing mortgages at the
following rate:
- Interest rate: 2.750%** (APR range 2.85 - 3.25%)
- Fees: Up to One Point (1% 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 Police Homeownership
Program
loan?
Under the Police Homeownership
Program, municipal and state police
officers who are first-time
homebuyers are eligible if they
purchase a home in a designated area
of a participating town. Qualified
municipal police officers must also work
in the town where they purchase
their home.
While this program focuses primarily on first time
homebuyers, previous home owners may be eligible also, if
the property they intend to purchase is located in a
participating town that is one of 18 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 Police 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. 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:
- 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
towns and cities participate in this
program?
The Police Homeownership Program
is designed to support municipal police
officers who wish to purchase homes
in the communities where they work.
The following towns and cities are
currently participating in the
Police Homeownership Program:
Bloomfield, Branford, Bridgeport,
Cheshire, Danbury,
East Haven, Enfield, Hamden, Hartford, Manchester, Meriden,
Milford, New Britain, New Haven, New London, Norwalk,
Norwich, Putnam, Stamford, Stratford, Waterbury, West Hartford,
Woodbridge
Please note: Interested applicants
should contact their police department or town hall to
obtain details on the eligible areas in their town or city.
What else should you know about
a Police Homeownership Program loan?
The following additional considerations
and restrictions apply to Police
Homeownership Program loans.
- Your town may offer
grants and loans to pay for
closing costs.
Eligible borrowers should
contact their police departments
to determine whether closing
cost assistance is available.
Some towns offer grants or loans
to cover these expenses on a
case-by-case basis.
- You may automatically
qualify for a CHFA loan to 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). Qualified borrowers of
the Police Homeownership Program
automatically qualify for a DAP
loan without regard to their
assets or household savings.
An officer who receives a DAP
loan must certify his or her
intention to own and occupy the
home he is purchasing for at
least seven years.
Please note:
Typically, 3.5 % of the purchase
price is the minimum required
down payment, depending on the
mortgage insurer’s rules.
- 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
Police Homeownership Program loan?
To apply for a Police
Homeownership
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
|
|
Additional Information
The following documents are
related to the Police Homeownership
Program. To open and view the
document, click on the document
title.
| Related Documents |
Found: 11
matches
Displaying:
1
- 11 |
|
 |
|
Found: 11
matches
Displaying:
1
- 11 | |
|