RD Guaranteed Loans Not Eligible for Purchase at Current CHFA Interest Rates

As you are aware, the municipal bond market is currently frozen and few bonds are being issued. This has greatly increased our cost of capital so we have correspondingly raised interest rates on single family loans. As a result of these interest rate increases, CHFA’s current interest rates exceed those allowed for Rural Development guaranteed loans.

Pursuant to RD Instruction 1980-D, 1980.320, and RD Instruction 440.1, Exhibit B, footnote 9: “The rate charged may not exceed the current Federal National Mortgage Association posted yield for 90-day delivery (Actual/Actual) plus six-tenths of 1 percent for 30-year fixed rate conventional loans, rounded up to the nearest one-quarter of 1 percent.”

CHFA continues to provide financing through FHA, Conventional, and VA loan products. When interest rates fall within acceptable RD parameters, CHFA will resume accepting RD reservations.

Please contact the Home Finance Division 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