Federal First-Time Homebuyer Tax Credit Is Nearing Its End!

CHFA is reminding everyone of the pending sunset of the Federal First-Time Homebuyer Tax Credit. Although discussion abounds regarding its extension and expansion, nothing has been approved. Therefore, we are all operating under the original dates for “purchases of main homes located in the United States after April 8, 2008 and before December 1, 2009”. This means that all closings must transpire before December 1, 2009.

As you know, the CHFA Jumpstart Tax Credit Loan Program was designed around the Federal Tax Credit. The CHFA JumpStart program will also sunset with the Tax Credit. Please encourage your Borrowers to take advantage of this unique opportunity before time runs out.

CHFA will continue to accept reservations in the CHFA JumpStart Program until 10:00pm Friday October 30, 2009 to ensure that CHFA can complete its Compliance review timely to avoid any closing delays. First time home buyers who are utilizing the CHFA HomeOpener, CHFA HomeAccess and CHFA SectionEight Programs may be eligible for the tax credit, so CHFA will do its best to ensure that Compliance reviews are completed on time as well.

To ensure that your Borrowers will have timely approvals and closings, please remember the following:

• CHFA is closed on Thursday, November 26 for Thanksgiving and only open from 8 am till noon on Friday, November 27 with a limited staff. Loans delivered to CHFA on these dates may not be approved in time for closing before December 1.
• Missing documents cause loans to be suspended and delay approval.
• Underwriters must review and approve loans before they are submitted to CHFA for Compliance Review.

Should the tax credit be extended, CHFA will notify the Participating Lenders of any programmatic changes.

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