CHFA offers a borrower premium feature which provides borrowers an opportunity to finance all, or a portion, of their closing costs through an increased interest rate. Borrower premiums are accomplished in the form of a lender credit.
Effective June 30, 2014, the following programs are eligible for the Lender Credit:
CHFA Advantagesm Refinance
CHFA Preferredsm/CHFA Preferred Plussm
CHFA SmartStepsm/CHFA SmartStep Plus
CHFA HomeOpenersm/CHFA HomeOpener Plus
CHFA FHA Streamline Refinance
disclosing borrower premiums
Lenders should disclose the Borrower Premium on the Loan Estimate and the Closing Disclosure in accordance with the lender’s company guidelines, provided those comply with all applicable legal and regulatory requirements, including any specific Fannie Mae or insurer/guarantor requirements. In addition, for loans reserved using Borrower Premium, the full 1, 2, or 3 percent as applicable must be reflected on the Closing Disclosure as a credit to the borrower.
If you have any additional questions, please contact
CHFA Home Finance.