Connecticut Housing Finance Authority (CHFA) still has money available for their Connecticut Families Refinance Program, but it is quickly running out. The primary goal of this program is to help families that have found themselves in a financial hardship due to matters that are out of their control such as:
- Loss of Job, but they have to be presently employed to qualify, because they have to demonstrate the ability to pay the new reduced payment.
- Temporary loss of overtime or reduction in work hours
- Unexpected loss of child support or alimony
- An unanticipated expense such as a funeral or medical bills.
- An unforeseen housing repair expense not covered by insurance
- Loss of rent if the house is a multi-family house.
These are just of few of the possible things that qualify as a financial hardship for this Connecticut Housing Finance Authority (CHFA Connecticut Families Refinance Program. What does not qualify as a hardship is if the financial problems were caused by financial mismanagement, such as running up credit cards. A divorce is also not a qualifying reason for a hardship for this program. The Homeowner does not have to be current on their payments, as well as other monthly debts, but as stated before the reason for the financial problems can’t be because of financial mismanagement.
Guidelines for the Connecticut Housing Finance Authority (CHFA) Connecticut Families Refinance Program are:
- Max LTV 97%; Max CLTV 108%
- Pre-closing and post-closing counseling are required
- Underwritten by CHFA guidelines – no delegated underwriting
- No minimum FICO
- Ratios 31%/43% although exceptions up to 50% are allowed with compensating factors on a case-by-case basis.
- Cannot refinance if meets the guidelines of available conventional or government insured fixed rate mortgage
- Homeowner must write a hardship letter fully detailing the cause(s) for the hardship.
- Interest rate is the current CHFA rate (3.75% this week)
- Do not have to be first time homeowners to qualify, as the case for other CHFA programs.
There are other guidelines for this program, but these are the major ones. Please feel free to call me with your questions about the Connecticut Housing Finance Authority (CHFA) Connecticut Families Refinance Program, and I will try to further explain. This is one of the few programs that I have seen that has actually provide real help for homeowners that are in trouble with their mortgage. If you think you or someone you know may qualify for the program, contact me and I will help determine if you do.
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Who To Call For Your Mortgage Needs In Connecticut:
George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.
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