How CHFA Can Open Doors To Home Ownership

I'm sure most of you have a preconception of what CHFA is or what CHFA is all about. Most of what I heard before I became a lender was always negative. There was always a stigma associated with it, like it was for people with bad credit or the recapture tax was terrible, or the compliance review took too long and even that CHFA was broke.

Well now after experiencing a few first hand, I have to say that you’re missing out if you don't consider a CHFA mortgage for yourself or for your buyers if you’re an agent. A CHFA loan can definitely open doors with its down payment/closing cost assistance program and as the market swings back in the seller’s direction; I see the popularity of CHFA mortgages only increasing.

First, let’s dispel the myths and negativity associated with this program:
• CHFA is not broke and never was, it's bond program was suspended for a short period of time but they were always solvent and lending.

• Compliance reviews are currently at 24-48 hrs

• There is only one program out of 4 that has a recapture tax associated with it and CHFA will reimburse you if you ever have to pay it!

• This isn't just a program for folks with credit challenges; buyers with great credit can take advantage of the down payment assistance programs as well. Unfortunately this is the only option for buyers who have credit scores between 580-619 and buyers with no credit scores at all.

CHFA currently has four programs available designed for first time home buyers and non first time home buyers and is currently the only way to monetize the $8000 tax credit. Most programs have a down payment/closing cost assistance component that typically comes in the form of a second mortgage. Even though this second mortgage has to be paid back it is still very affordable because it is amortized over thirty years and it's typically a very small loan in the first place.

The two most basic requirements are that the buyers take a buyers education class and that they contribute a minimum of $1000 to the transaction.

All-in-all it's a very useful program and for the right person can open doors that would have been closed otherwise. Please consult with your CHFA approved mortgage lender or contact me with any questions 719-686-3652.