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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: 3.125%** (APR range 3.225 - 3.625%)
    • Fees:
    • 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.

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 Police Homeownership Program.  To open and view the document, click on the document title. 

Related Documents Found: 12  matches     Displaying: 1 - 12 
FileSizeType
005 Approval of Assumption - 035-1195 Rev 7-14
This form approves the CHFA assumption of a CHFA Mortgage.
43Kpdf

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

030 Downpayment Assistance Program (DAP) Appl for Dwnpymnt and Closing Costs - DAPappcc Rev 6-14
This is the Downpayment Assistance Program application for downpayment assistance and closing costs.
154Kpdf

115 Processing Checklist and File Submission Order - 0009-1107
The 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

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

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

Police Eligibility Letter_Sample - 03-12-7
This is a sample of the format and language that may be duplcated by a public safety official to certify a Police Officer's eligibility to receive CHFA mortgage loan financing under the term and conditions of the Police Mortgage Assistance Program.
48Kpdf

Police Program Participating Town List Rev 7-1-2013
This is a list of Town that participate in the CHFA Police Program
114Kpdf

Police Homeownership Program Fact Sheet
This provides a one-page overview of the Police Homeownership Program.
464Kpdf

Recapture Tax (The Federal) Threshold Income Limits - rev. 8-18-2014
This chart lists the threshold income limits for the Federal Recapture Tax liability based on geographic location of the home and the number of years of ownership.
266Kpdf

Teacher Statement of Eligibility for Mortgage Assistance
This document must be completed by an authorized agent of the school system to certify Teachers eligibility to received CHFA mortgage loan financing under the terms and conditions of the Teachers Mortgage Assistance Program.
200Kpdf
FileSizeType
Found: 12  matches     Displaying: 1 - 12