it’s here! chfa’s down payment assistance grant starts today!
Effective for all loan reservations on or after February 2, 2015, CHFA’s Down Payment Assistance (CHFA DPA) will now be provided in the form of a
CHFA DPA Grants:
CHFA DPA Grants are available under the following programs:
- Are non-repayable;
- May not exceed 3 percent of the first mortgage loan amount;
- May be used toward down payment, closing costs and/or prepaids; and
- Will not be secured by a lien.
- CHFA Preferred Plussm
- CHFA SmartStep Plussm
- CHFA HomeOpener Plussm
- CHFA SectionEightsm Homeownership Plus
CHFA will not transfer or convert existing loan reservations (where documents have been delivered to Compliance for review) to include the new DPA grant. However, for loans which are currently in
reserved status (i.e., documents have not been delivered for program compliance review), you have the option to cancel the reserved status loan and create a new loan reservation. If you choose to cancel an existing reserved status loan, the new loan reservation will be subject to the pricing in effect at the time the new reservation is made.
To lock a loan with the CHFA DPA Grant, choose the appropriate loan product with “Plus” in the name, just as you would to get a second mortgage. Funding of the CHFA DPA Grant is the same as the previous CHFA Second Mortgage funding process. A Participating Lender will fund the CHFA DPA Grant at closing and will be reimbursed by CHFA at the time of loan purchase. We encourage all of our lenders to contact their respective warehouse lines, if applicable, to ensure there are no issues or additional requirements related to funding the CHFA DPA Grant. In addition, we highly recommend lenders consult with applicable insurers, guarantors and/or Fannie Mae for programs in which they participate to ensure the CHFA DPA Grant is entered appropriately on all applicable forms and documents. Grant award letters are required for all loans utilizing a CHFA DPA Grant, and will be provided at loan program compliance approval.
Please note: When registering a CHFA “Plus” product, the CHFA DPA Grant amount will not display on the HomeConnection screen. However, it
will display on the email confirmation. Lenders can also access the confirmation by clicking on the reservation letter via the reservation tab at the bottom of the HomeConnection page.
CHFA has also revised its RISC Requirements. Effective with all reservations made on or after February 2, 2015, manually underwritten loans with a DTI of 43% or less will not be required to pass RISC.
Upon the release of the CHFA DPA Grant, updated versions of the following documents will be on our website:
For additional information, please review
CHFA’s DPA Grant FAQs.
- CHFA Form 746
- CHFA Form 746-2nd
- CHFA Form 747
- CHFA Form 747-2nd
- CHFA Form 740
- RISC Instructions
- CHFA RISC FAQs
We anticipate a release of 2015 Mortgage Credit Certificates (CHFA MCCsm) sometime in early February. More information is coming!
We look forward to working with you to make 2015 a successful year.