CHFA FirstStep^sm and CHFA FirstStep^sm Plus

Beginning February 1, 2010, CHFA is pleased to announce the CHFA FirstStep and CHFA FirstStep Plus programs for first time homebuyers and eligible veterans. Both programs have income and purchase price limits and are subject to the (CHFA reimbursable) Federal Recapture Tax. Both Programs require all tax exempt affidavits, disclosures, and three years of tax returns from the Borrower. 

The CHFA FirstStep Plus also offers a CHFA Second Mortgage Loan for down payment and/or closing costs. The CHFA Second Mortgage Loan is for a maximum of 3 percent of the first mortgage; its rate and term mirror the first mortgage.

Want to learn how to use these important Programs for your first time homebuyers? Attend one of the mandatory lender trainings to take advantage of these special programs. For a complete training schedule and RSVP information, please visit our website:

http://www.chfainfo.com/lender/Single_family_lending_partners_and_realtors/Education/Education.icm

Upcoming Changes For All CHFA Borrowers

Effective for all reservations beginning February 1, 2010

·         All CHFA Second Mortgage Loans are now subject to the RESPA requirements. Any CHFA Second Mortgage Loan must now have a Good Faith Estimate as well as a HUD-1A Settlement Statement. These forms and comprehensive instructions will be available on our website. This eNews supersedes the RESPA requirements regarding GFEs in the eNews released 12.31.09.

• Borrower minimum financial contribution will continue to be $1,000; however, now it must come from the Borrower's own funds. Gift funds will not be allowed. CHFA will require verification of funds in the Borrower's depository institution for no less than 60 days.
• Cosigners will not be allowed. For the past few years, CHFA has required that all Borrowers qualify on their own to purchase their home even if there were cosigners. To eliminate confusion, cosigners will no longer be permitted.
• Non-Traditional/Emerging Credit Reports must be developed by a credit reporting agency for all Borrowers with insufficient or non-traditional credit. CHFA will continue to serve the non-traditional credit Borrowers, but Participating Lenders will now be required to provide an actual alternative/emerging credit report from a credit reporting agency, as opposed to providing pay histories from individual creditors or a lender-developed alternative credit history.
• CHFA Risk Information Score Card (CHFA RISC).  CHFA will continue to serve the 580-619 credit score Borrower; however, for all loans to Borrowers and Co-borrowers having credit scores between 580 through 619, a new credit score card must be completed and submitted to CHFA with the Compliance file. The CHFA RISC Score Card and instructions will be available on our website at www.chfainfo.com.
• Elimination of the 30-day delivery option. CHFA will no longer offer the 30-day delivery option. This delivery timeframe was seldom used and those CHFA Participating Lenders that did use this option had a very difficult time meeting the 30-day timeframe.

·         Non-taxable income is calculated at the actual amount received. CHFA does not allow non-taxable income to be grossed up in qualifying a Borrower, nor does CHFA use grossed-up income when verifying that a borrower's income does not exceed the program income limits.

Please contact us with any questions.

303.297.7376 or 1.888.320.3688 Denver
970.241.2341 or 1.800.877.8450 Western Slope
 

Thank you,
CHFA Home Finance