The Connecticut Housing Finance Authority (http://www.CHFA.0rg) expanded their Military Homeownership Program effective today.  Up to this point a veteran had to be on active duty to take advantage of the MHP.  The change made today allows veterans who have an honorable discharge or a release from service other than dishonorable to enjoy the benefit of the Military HP.  Unmarried surviving spouses of veterans who died as a result of military service or service connected disability will also be eligible.

Another change to make a note of is regarding previous homeownership. Traditionally CHFA is available to first time home buyers.  For a limited time, until funds raised from the sale of Mortgage Revenue Bonds issued between 12/20/06 and 01/01/08 are used up, the veteran borrower does not need to be a first time home buyer.  This means that instead of having to show that you have not owned a home in the last three years, you can buy right now with CHFA as long as you fit the guidelines for the Military Homeownership Program.

This week, the regular interest rate for the CHFA program is 5.875% with 1 point.  The rate for the Military Homeownership Program is 5.75% with 1 point.  For active duty veterans, CHFA will also allow the rental of the primary residence if the veteran is transferred to another duty station.   This is worth looking into if you fit these guidelines.  CHFA is a 30 year fixed rate, fixed payment mortgage with NO prepayment penalty.  At McCue Mortgage Company we have been a participating lender since CHFA was formed in 1969.