homeownership faqs

Buying a home doesn’t have to be overwhelming. Click here for helpful steps that can assist you with obtaining a mortgage loan with CHFA.

Use one of our calculators to find out how much you might be able to afford and your estimated monthly payment.

Contact a CHFA Participating Lender in your area to inquire about CHFA's mortgage loan programs. The lender will look at a variety of factors including your monthly income, credit history, and debt level to determine how much you may qualify for. He or she will also work with you to find the best CHFA program for your needs.

CHFA offers two types of assistance: a CHFA Down Payment Assistance Second Mortgage Loan or a CHFA Down Payment Assistance Grant. Each of these programs must be paired with a CHFA first mortgage loan program.

Borrowers may obtain either the CHFA Down Payment Assistance Grant or the CHFA Down Payment Assistance Second Mortgage Loan, but cannot obtain both options in conjunction with their CHFA first mortgage loan.

Repayment requirements depend on what down payment assistance option you choose:

• CHFA’s Down Payment Assistance Grant offers up to 3% of your first mortgage loan amount and does not require repayment.*
• CHFA's Down Payment Assistance Second Mortgage Loan offers up to 4% of your first mortgage loan amount. Repayment is deferred until certain events, such as payoff of your first mortgage (including sale or refinance) or if the home is no longer your primary residence.*
  *Higher rates apply.

Yes. CHFA requires borrowers to make a Minimum Financial Investment (MFI) of $1,000 toward the purchase or refinance of the Property in addition to any remaining closing costs or down payment requirements. This contribution can be counted as part of the down payment or toward closing costs required for the loan. Gifts from family members or other eligible sources may be used to meet the Minimum Borrower Financial Contribution.

Yes. You can always put down more than the minimum required down payment and still utilize a CHFA first mortgage loan and one of CHFA’s down payment assistance options.

​Yes. All CHFA programs have income limits. Income limits are based on household size, county, targeted or non-targeted area, and CHFA loan program. Click here to view income limits.

• All borrowers must have a mid-credit score of 620, however, there may be exceptions for those individuals with no credit score. In addition to meeting CHFA program requirements, borrowers must qualify according to the underwriting guidelines as determined by one of CHFA’s Participating Lenders.
• Need information on how to improve your credit? Contact a homebuyer education provider.

CHFA requires all borrowers purchasing a home utilizing a CHFA first mortgage loan program to take a CHFA-approved homebuyer education class before closing on their loan. Take a homebuyer education class early in the homebuying process to help with everything from selecting a realtor and lender to understanding “the hidden costs of homeownership.” CHFA sponsors classes across the state, both in-person and online (in-person classes are free). View our list of CHFA-approved education providers and check the schedule to find a class date convenient for you.

No, working with a real estate professional is not required, but is recommended.

CHFA’s homeownership programs are available through our statewide network of more than 100 participating lenders. Find a CHFA Participating Lender close to you and get started.

Mortgage insurance protects the lender – not you – if you fall behind on your payments. Borrowers making a down payment of less than 20 percent of the purchase price of the home may need to pay for mortgage insurance. Typically, if you are required to pay mortgage insurance, it will be included in your total monthly payment.

Loans under certain CHFA programs are, in accordance with IRS requirements, subject to Recapture Tax. The CHFA program must be funded using tax exempt financing and all three of the following conditions must be in effect to trigger the tax**:

• The home is sold or transferred in some other way within nine years of the original closing date.
• The borrower has a net gain on the sale of the property.
• The borrower's income has increased to more than an amount prescribed by the Federal Tax Code.

Learn more about Recapture Tax.

** Exceptions apply.

Certain geographical areas of the state are federally designated as a "targeted area". These targeted areas may include entire counties or certain census tracts within a county. Income and purchase price limits may be higher in these areas.

Please call 888.320.3655 to request a copy of your MCC. To learn more about how you can have your MCC reissued.

Please contact a CHFA Participating Lender to learn more.