zero percent deferred second mortgage now available!
Effective on all new reservations made on or after today, August 18, 2014, CHFA’s Second Mortgage will now be a zero percent (0%) deferred mortgage.
All CHFA Second Mortgage loans reserved prior to August 18, 2014, will remain interest-bearing Second Mortgage loans with monthly payments due, unless you have submitted the
CHFA Form 704 to change the reservation to the zero percent (0%) Second Mortgage. If you have an existing reservation in “reserved” status, you may submit the CHFA Form 704 to change to the new zero percent (0%) Second Mortgage. Unfortunately, we are unable to transfer any loans already in process to the new Zero Percent Second Mortgage. Please wait for confirmation of the change from CHFA prior to re-disclosing to your borrower(s).
Please ensure that you are disclosing the correct terms to borrowers and using the correct documents based upon the type of CHFA Second Mortgage loan you have reserved. In order to assist you, we have made available written instructions for both Second Mortgage loan programs.
Please note: The Note and Deed of Trust are different for each program. The forms required for each program are as follows:
Interest Bearing Second Mortgage
CHFA Form 306, Interest Bearing Second Mortgage Note; and
CHFA Form 311, Interest Bearing Second Mortgage Deed of Trust
New Zero Percent Deferred Second Mortgage
CHFA Form 305, Zero Percent (0%) Deferred Second Mortgage Note; and
CHFA Form 310, Zero Percent (0%) Deferred Second Mortgage Deed of Trust