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Home Finance
CHFA wants to remind Participating Lenders of the Reservations policy for all CHFA loans. Per the Seller’s Guide, Chapter 4, Reservation, Section 402: Making a Reservation:
When a Reservation is made prior to receipt of a fully executed contract, the Reserved Interest Rate may not be valid if it was not available on the actual date the contract was fully executed. CHFA will randomly audit files where the property address has changed and will request a copy of the Purchase Contract for the original property for which the Reservation was made. If the Reservation was made prior to receipt of a fully executed contract, the Reservation will be corrected to the date of the fully executed contract, and the Interest Rate will be corrected to that which was applicable on the corrected Reservation date.
CHFA understands that if the contract is for an REO property, there may be a time delay in getting a fully executed contract from the bank-owner, relocation, or disposition company. CHFA considers any proof (email, letter) of written acceptance of the offer that identifies the property address, buyers, and accepted price to be an adequate substitute for a fully executed contract. Please note that a fully executed contract is required for Compliance Review.
Thank you in advance for your cooperation in providing additional documentation upon request. Please contact Home Finance with any questions.
B. If applicable, Borrower has a fully executed purchase contract on a Property that is eligible for the applicable Program, and that meets the Purchase Price Limits for the applicable Program. [NOTE: This is not applicable for refinance Reservations in the HomeStretch, Hardship Refinance and CHFA’s FHASecure Programs.]
When a Reservation is made prior to receipt of a fully executed contract, the Reserved Interest Rate may not be valid if it was not available on the actual date the contract was fully executed. CHFA will randomly audit files where the property address has changed and will request a copy of the Purchase Contract for the original property for which the Reservation was made. If the Reservation was made prior to receipt of a fully executed contract, the Reservation will be corrected to the date of the fully executed contract, and the Interest Rate will be corrected to that which was applicable on the corrected Reservation date.
CHFA understands that if the contract is for an REO property, there may be a time delay in getting a fully executed contract from the bank-owner, relocation, or disposition company. CHFA considers any proof (email, letter) of written acceptance of the offer that identifies the property address, buyers, and accepted price to be an adequate substitute for a fully executed contract. Please note that a fully executed contract is required for Compliance Review.
Thank you in advance for your cooperation in providing additional documentation upon request. Please contact Home Finance with any questions.
