Connecticut Housing Finance Authority (CHFA) HFA 3% Down Conventional Mortgage

By
Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

 

 The Connecticut Housing Finance Authority (CHFA) has introduced their new Connecticut Housing Finance Authority (CHFA) HFA 3% Down Conventional Mortgage.  This is great news for Connecticut First Time Homebuyers, and for the housing market in Connecticut. 

The Connecticut Housing Finance Authority (CHFA) is the premier first time homebuyer mortgage program in Connecticut.  In 2008 CHFA discontinued Conventional Purchase Loans, and only offered FHA Insured Loans.  With the  FHA changes that went into effect on April 1, 2013, CHFA began to realize the FHA changes were a  disadvantages to Borrowers, and once again began incorporating Conventional Products into their Purchase Mortgage Programs.

The first change took place on January 21, 2013, with CHFA providing an option for Conventional Mortgages on 1-4 Unit Properties with a 20% downpayment.  But that option was not available for existing Fannie Mae (FNMA) eligible condominiums.  However, on March 15, 2013, CHFA extented the Conventional Mortgage 20% Down Payment program to Condominiums.

Even though the 20 Down Conventional Mortgage Programs offered by CHFA in early 2013 were welcomed programs, the 20% Down Payment requirement was a problem for most First Time Homebuyers.  It became obvious a conventional mortgage program with similar downpayment requirements, and the availability of Down Payment & Closing Costs Assistance was needed.  It took CHFA about a year to come up with a conventional option,  but they did with the introduction of the CHFA Housing Finance Authority (HFA) 3% Down Conventional Mortgage.  The CHFA HFA Conventional Mortgage Program trully makes CHFA a real option for First Time Homebuyers again.

Under the HFA Mortgage Program First Time Homebuyers can purchase a home with:

  • 3% Downpayment
  • Conforming Loan Limits
  • CHFA Income & Sales Price Limits.
  • Standard CHFA below market interest rates apply
  • Single Family Units or Condos only at 3% down payment, 680 Minimum FICO
  • Two family Unit Properties 5% down payment, 640 Minimum FICO, but Borrower must have 3% of their own funds.
  • Down Payment Assistance (DAP) Loans available up to 105% Max Cumulative Loan To VAlue (CLTV) if using 3% down program
  • 45% Debt-To-Income Ratio (with no DAP)
  • 43% Debt-To-Income Ratio (with DAP)
  • Seller Contributions:
    • 3% for CLTVs Greater Than 90%
    • 6% for CLTVs Less Than 90%

In my next blog I will provide a loan comparison which will show the Connecticut Housing Finance Authority (CHFA) HFA 3% Down Conventional Mortgage, is a huge advantage to First Time Homebuyers by increasing their buying power, and substantially reducing their monthly payment.  Also because the CHFA FHA is a conventional mortgage program, the Borrower can eliminate the Private Mortgage Insurance (PMI) once the loan balance reaches 78% LTV, as oppose to the FHA Monthly Insurance Premium (MIP) which remains on the loan life time for loans with an LTV greater than 90%.

 

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator 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, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who is licensed in #CT, #RI, #MA, #NH, & #FL and can assist you with all your #FHA, #Conventional, #VA, #USDA, and #State Bonded Progam #mortgage needs in #CT, #RI, #MA, #NH, & #FL. George resides in Middlesex County which includes #Middletown, #Old Saybrook, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or souto@snet.net

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Rainmaker
1,816,979
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in Southern RI and beyond

Always sharing the latest and greatest on CT mortgage loans for home buyers George!

Jul 28, 2014 09:48 PM #2
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Maria Gilda Racelis I will be posting the follow up blog tomorrow, and hope you can clear your schedule to be at my MeetUp a week from Thursday :)

Ginny Gorman I try.  I have another program that we just rolled out which is a 10% Down Payment program with NO PMI that I will be posting about soon.

Jul 28, 2014 09:54 PM #3
Rainmaker
3,940,980
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning George,

Thank you for always posting the latest information on your CT mortgage loans for you home buyers. I'm sure your posts are avidly read and you get many calls!

Jul 28, 2014 10:37 PM #4
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Dorie Dillard  thank you and I would imagine if this program is available in CT then it should also be available through other Housing Finance Authorities in other states as well.

Jul 28, 2014 11:19 PM #5
Rainmaker
3,463,835
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Sounds like a great plan for some home buyers, George. We have variations on this theme in NC as well.

Jul 29, 2014 01:04 AM #6
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

This is such good news for first time home buyers.  That higher down payment is a serious barrier for many buyers. 

Their rent doesn't stop until they close.  The grocery bill doesn't stop. 

It's harder than ever for buyers to accumulate even 3%.

Jul 29, 2014 06:05 AM #7
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Nina Hollander I would expect others states to have a variation of this program as well and it is up to us to get the word out about it.

Lenn Harley you are right and the beauty of this program is that the 3% Down Payment and Closing Costs can be Borrowed at the same low interest rate as the first loan.  And with the PMI dropping off at 78% LTV makes this program a major advantage to the FHA program.  I will show that in my blog tomorrow morning.

Jul 29, 2014 06:47 AM #8
Rainmaker
2,350,188
Anita Clark
Coldwell Banker Access Realty ~ 478.960.8055 - Warner Robins, GA
Realtor - Homes for Sale in Warner Robins GA

George: This is an incredibly good deal for Connecticut first-time buyers! It is good to hear the CHFA is making strides in the right direction!

Jul 29, 2014 08:11 AM #9
Rainmaker
2,188,285
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Hi George,

This is great news for the people of Connecticut. Let's get those homes sold before the cold winter starts. I can't think of any reason why anyone would want to wait!

Jul 29, 2014 09:17 AM #10
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Anita it is a step in the right direction, and a long time coming.

Patricia, you are right there is no good reason for waiting any more.  Those who continue to wait will regret they did when this market turns around.

Jul 29, 2014 10:41 AM #11
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Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

Hi George, great loan program for Connecticut home buyers!  I imagine especially first time home buyers will be able to take advantage of it.

Jul 29, 2014 10:56 AM #12
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Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

George, this is a great program for those buyers that qualify, CHFA is certainly leading the way for easier mortgages in CT

Jul 29, 2014 11:00 AM #13
Rainmaker
2,878,896
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

George, this is a wonderful program.  Holy Gads, conventional loan with 3% down?  This will make buying a home a possibility for many first time home buyers. 

Jul 29, 2014 11:14 AM #14
Rainmaker
1,317,757
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

George -- this type of program is great for first time buyers.  I think it will open up home buying opportunties for them.  

Jul 29, 2014 12:08 PM #15
Rainmaker
2,706,751
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Hello George,

This is going to be a very popular program...get ready for a flood of applications!

Jul 29, 2014 12:09 PM #16
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

George, This program will help so many that don't have a lot of downpayment for a home. You make it so easy to understand.

Jul 29, 2014 12:20 PM #17
Rainmaker
2,332,298
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning George. I continue to say, no one know CHFA better than you do. Thank you for the new information, when I have someone that would be a good fit, I will refer them to you.

Jul 29, 2014 06:18 PM #18
Rainmaker
3,463,835
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

George... you mentioned my name in your comment and the new system sent me a message... so cool!

Jul 29, 2014 08:58 PM #19
Rainmaker
1,439,377
Jeff Jensen
The Federal Savings Bank/Lending in 50 states - Greenwich, CT

Hey George,  I hope you are having a great summer!

Jul 30, 2014 07:54 AM #20
Rainmaker
431,981
Frances C. Rokicki
Fran Rokicki Realty, LLC - Bolton, CT
Broker-Mentor,CRS

Yay!  This is a much needed product for first time homebuyers!   Should help many people into homeownership! 

Thank you, George, for always being a step ahead with good information!  It helps me to better serve my clients:)

Jul 31, 2014 08:10 AM #21
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