Conventional AMI Loan Program (CALP)

The CHFA Conventional Area Median Income (AMI) Loan Program (CALP) provides  first mortgage loan financing to qualified first-time homebuyers that do not qualify for the FNMA - HFA Preferred^TM  or FHLMC - HFA Advantage^®  Loan Programs due to their qualifying income being greater than 80% of the Area Median Income.  This program helps borrowers save on insurance costs, along with CHFA's below-market interest rate.  If you are not a first-time homebuyer, you may still qualify for this mortgage program if you are purchasing a home in a Targeted Area.

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  Benefits

  • No upfront mortgage insurance costs
  • Lower monthly mortgage insurance costs
  • Mortgage Insurance premiums end when borrower reaches 20% equity

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  Eligible Properties

  • Single-family homes, Townhouses  
  • Fannie Mae or Freddie Mac eligible Condominiums
  • Planned Unit Developments (PUDs)
  • Two-to-four unit homes

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  Eligibility Requirements

  • You must be a first-time homebuyer or have not owned a home in the past three years.
  • The home must be your primary residence.  Investment or vacation properties are not allowed.
  • The sales price of the home must be within the CHFA Sales Price Limits, and the applicants qualifying income must be greater than 80% AMI but it cannot exceed the CHFA income limits for the city or town where the property is located.  The CHFA Resource Map can tell you if you are within program eligibility limits.

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  Additional Considerations

  • You will be required to attend a free Homebuyer Education class prior to closing. The class will help you understand the home-buying process and offer tips for maintaining your new home. Classes are held online and at locations across Connecticut.
  • You may be required to pay mortgage insurance. The amount is specific to your individual circumstances.   This requirement will end once you pay the equivalent of a 20% down payment.
  • In rare cases, you could be required to pay a Federal Recapture Tax if you sell your home within the first nine years, AND earn a profit, AND your income exceeds the designated Federal Recapture Tax Income at the time of sale.  Should you fall into this category, you may be reimbursed by CHFA for the taxes paid if you complete and file the required forms. Consult a tax professional if you have questions on the Recapture Tax.