CHFA HomeStretchsm is a 40 year fixed interest conventional loan program for any potential homebuyers who are considering financing a home using an ARM or interest-only product, or for homeowners that may be considering a refinance out of their existing ARM or interest-only mortgage.
New changes: Effective immediately with reservations.
The CHFA HomeStretch 40-year loan program has been expanded to reach more homeowners achieve a safe affordable mortgage.
- Previous cash out refinances are now acceptable
- Borrowers who want a rate and term refinance of a current mortgage, in which they used their available equity, may do so, if the current mortgage is a least 12 months old.
- Manufactured Housing now acceptable
- Borrowers wishing to purchase or refinance a manufactured home may do so if the LTV/CLTV does not exceed the requirements of the applicable insurer.
- Freddie Mac 40 year Home Possible underwriting guidelines now acceptable
- CHFA accepts Freddie Mac Loan Prospector (LP) AUS Accept/Eligible findings. (LP A-Minus findings are not allowed.)
- Expanded MI partnerships
- RMIC has agreed to insure and underwrite CHFA HomeStretch mortgages along with Genworth, offering all the same benefits, such as low LPMI rate and free job loss protection.
- Subordinate Mortgage Seasoning Requirement
- Borrowers refinancing a first mortgage with any subordinate liens (HELOC, 80-20, etc) the subordinate liens must have at least 12 months seasoning.
Some features of the product:
- Higher income limits, the same as our Taxable HomeOpener program.
- The borrower can get a 97 percent loan-to-value (LTV) for the first mortgage for an acquisition or a refinance. Maximum first mortgage is the lesser of sales price or appraised value, minus a $500 borrower contribution.
- The borrower can get an optional second mortgage with a combined loan-to-value of 100 percent (CLTV) for either an acquisition or refinance.
- Homebuyers must still take a CHFA Homebuyer Education class, whether that be in-person or online. Both our First Time Homebuyer class and our CHFA Money Management class (for current homeowners) are available online.
- Involuntary Unemployment Insurance, provided through Genworth and RMIC, during the first three years of the loan.
- Optional budget drafting to repay the mortgage more quickly and reduce the interest paid over the life of the loan.
To qualify, the borrower must:
- Be eligible for Fannie Mae’s MyCommunityMortgage 97% or Freddie Mac Home Possible
- Be current on payments
- Meet the credit and property requirements of the applicable insurer
Program Comparison
|
term
|
30 year
|
40 year
|
|
program
|
MRB FirstStep
|
MRB FirstStep
with 2nd mortgage
|
CHFA HomeStretch
|
CHFA HomeStretch
with 2nd mortgage
|
|
loan amount
|
$150,000
|
$150,000
|
$150,000
|
$150,000
|
|
interest rate
|
6.25%
|
6.50%
|
7.25%
|
7.50%
|
|
P&I payment
|
$923.58
|
$948.10
|
$959.51
|
987.11
|
|
monthly MI
|
$97.50
|
$97.50
|
n/a
|
n/a
|
|
total payment
|
$1,021.08
|
$1,045.60
|
$959.51
|
$987.11
|