Learn more about how to obtain a CHFA Multifamily Loan.
Obtaining a CHFA Multifamily Loan
Loan Process
CHFA’s typical loan process includes the following steps:
- Prescreening: CHFA reviews information provided by the developer and, if it looks like a good fit for CHFA financing, issues Term Sheet.
- Application: CHFA provides welcome letter and checklist, collects due diligence information, and provides direction for an environmental assessment if HUD insured.
- Underwriting: CHFA analyzes the application and project-related documents and seeks internal approvals from Loan Committee and, for certain loans, the CHFA Board.
- Commitment: CHFA issues a Commitment letter, and submits materials to HUD for Firm Approval Letter of Risk Share Insurance if Risk Share is involved.
- In the case of a forward commitment, the commitment remains through the construction period until the project reaches stabilized occupancy, at which time the closing process begins. For immediate fundings, we will move to the closing phase after commitment.
- Closing: CHFA prepares and circulates draft loan documents, collects and reviews final project and closing checklist information, participates in regularly scheduled closing calls, and submits a closing docket to HUD for Note endorsement if Risk Share insured. If bonds are involved, the process toward approving and issuing the bonds occurs after the Commitment Letter is signed and returned.
How to Begin
Next Steps Following Initial Contact
One of CHFA’s Loan Officers will analyze the project financials and send a preliminary term sheet with a financing proposal if CHFA financing is determined to be a good fit Once the term sheet is signed and returned with the application fee, we will begin the application review and due diligence process.
Underwriting and Commitment Process Timing
CHFA offers fast process time from application to commitment once we’ve received required due diligence items.
- On a forward commitment where CHFA is the permanent lender, the due diligence and commitment period takes from 60 to 90 days from the receipt of a complete loan application to issuance of a loan commitment.
- For construction-to-permanent loans that involve Private Activity Bonds, the timing ranges from 150 to 180 days due to the additional timing needed to market and issue the bonds, along with deeper due diligence on the construction documents. The HUD environmental review also adds lead time to the due diligence period.
Post-closing
Your connection with CHFA continues past closing, offering you peace of mind through the life of the loan. You will work with CHFA’s Asset Management Division who will provide oversight and compliance for your property.