CHFA supplies different loan programs, each of which is listed below.
Note: To view the income and purchase price limits for all programs listed below, please click on the link in the left navigation bar. You will need Adobe Acrobat Reader, a free download, to view the document.
With these programs, you will need to consider a mortgage type: FHA, USDA Rural Development (RD) or Veteran's Administration (VA).
Homebuyer education requirements
CHFA requires education for all our programs. First time homebuyers applying for CHFA's programs can take our new online CHFA U First Time Homebuyer course. All other borrowers can take our online CHFA U Money Management course. All CHFA programs will accept in-person CHFA Homebuyer Education provided by a CHFA-approved agency.
CHFA FirstStep and CHFA FirstStep Plus
The CHFA FirstStep and CHFA FirstStep Plus statewide Mortgage Loan programs are available to first time homebuyers
and eligible veterans. These programs offer affordable interest rates and a 30 year term. CHFA FirstStep Plus includes
a 30 year fixed rate second mortgage loan to assist with down payment and/or closing costs.
Borrowers must meet income and purchase price limits, as well as complete a CHFA approved first time homebuyer education class.
CHFA FirstStep and CHFA FirstStep Plus loans may be subject to the (CHFA reimbursable) IRS Recapture Tax and may not be used in conjunction with the Mortgage Credit Certificate (MCC) program.
CHFA HomeOpener and CHFA HomeOpener Plus
CHFA HomeOpener and CHFA HomeOpener Plus are statewide first mortgage programs available to homebuyers. There are no purchase price limits or first time homebuyer requirements, and mortgage loans originated in these programs are not subject to the Recapture Tax provision. The CHFA HomeOpener Plus program includes the CHFA Second Mortgage Loan to assist with down payment and/or closing costs for a single family property. The programs offers market interest rates.
These programs have income
limits, and to qualify, you must attend a CHFA U
First Time Homebuyer course if you are a first time homebuyer or CHFA U Money
Management course if you are not a first time homebuyer. You must also contribute a minimum $1,000
of your own funds to
the purchase of the home. The property must be occupied by the homebuyer and not used as a rental property.
CHFA Second Mortgage Loan
Used in conjunction with the CHFA FirstStep Plus and CHFA HomeOpener Plus programs, this optional loan helps with down payment and closing costs. This loan, if used, will come from the same lender as your primary loan.
The CHFA Second Mortgage Loan is available for up to 3 percent of the first mortgage loan amount at the same interest rate and term (30 years) as the first mortgage.
Monthly payments are due on this loan at the same time the payments on
the first mortgage loan payments are due. If the first mortgage is refinanced, title transferred, or if the property is no longer the borrower’s principal residence, the CHFA Second Mortgage Loan is due and payable in full. The CHFA Second Mortgage Loan can not be subordinated to any new first mortgage other than one offered by CHFA.
CHFA JumpStart2 Tax Credit Program
Take advantage of the federal First-Time Home Buyer Tax Credit program by using the CHFA JumpStart2 Tax Credit program for your down payment and/or closing costs. Repay this zero percent second mortgage loan when you get your tax credit refund and build instant equity in your home.
The CHFA JumpStart2 Second Mortgage Loan is available for 3.5 percent of the first mortgage loan amount, up to $6,000, at an initial zero percent interest rate, which converts to an 8 percent interest rate with a 120-month term if not paid in full by December 31, 2010. Interest begins accruing on January 1, 2011, with payments beginning on February 1, 2011, and are made monthly thereafter. This program has income limits, and to qualify, you must attend a CHFA U First Time Homebuyer course.
To receive the greatest benefit from the CHFA JumpStart2 program, CHFA strongly recommends that you repay the CHFA Second Mortgage Loan in full with the tax refund. If the CHFA Second Mortgage Loan goes into repayment, the benefit of the program is substantially diminished. If you do not intend to repay the CHFA JumpStart2 Second Mortgage Loan with your tax refund, you should consider using a different CHFA second mortgage loan program, such as CHFA HomeOpener Plus.
CHFA HomeAccess
People with disabilities or parents of a child with a disability may qualify for the HomeAccess program. This program is available to low income, first time homebuyers or individuals who have not had property ownership or been listed on a title in the past three calendar years. There are purchase price and income limits on these loans.
To assist with down payment and/or closing costs, CHFA provides an optional up to $25,000 CHFA HomeAccess Second Mortgage Loan. Used in conjunction with the HomeAccess first mortgage, this second mortgage is at a zero percent (0%) deferred principal payment. Payment is not due until the sale, refinance, or repayment of the first mortgage, or when the property is no longer the borrower’s primary residence.
CHFA SectionEight and SectionEight Plus Homeownership programs
Renters who receive Housing Assistance Payments (HAP) from Public Housing Authorities(PHA) and are approved by the PHA to participate in their homeownership programs may be eligible for CHFA SectionEight Homeownership program. There are purchase price limits and income limits and the program is only available to first time homebuyers. This program provides a market rate first mortgage. To assist with down payment and/or closing costs, the CHFA SectionEight Plus Second Mortgage Loan is available for up to 3 percent of the first mortgage. Both mortgages are 30 fixed rate loans with a monthly payment.
CHFA Statewide Mortgage Credit Certificate
The CHFA Statewide Mortgage Credit Certificate ( CHFA MCC) program allows first time homebuyers and certain qualified homeowners refinancing a mortgage to claim up to 20 percent of their mortgage interest each year as a federal tax credit on their Federal Income Tax returns. CHFA offers MCCs statewide. To learn how to reduce your federal income taxes with this program, click here.
Contact the Home Finance Division for more information via email or call 888.320.3688.