chfa brings back our popular zero percent interest, non-amortizing second mortgage loan for down payment assistance
Effective for all new loan reservations made on or after August 18, 2014, CHFA’s Second Mortgage Loans for down payment and/or closing cost assistance will include the following terms:
CHFA Second Mortgage Loans may be paired with the following CHFA loan programs:
- Zero percent (0%) interest rate;
- Non-amortizing, no monthly payments due;
- Thirty-year term, due on the maturity of the First Mortgage Loan*; and
- No prepayment penalty.
The maximum loan amount allowed will remain 3 percent of the CHFA First Mortgage Loan.
- CHFA SmartStep Plussm
- CHFA Preferredsm Plus
- CHFA HomeOpenersm Plus
- CHFA SectionEightsm Homeownership
update reserved status loans by August 15 to take advantage of these exciting changes
For all existing CHFA loan reservations currently in a reserved status, with no loan package yet delivered to CHFA for Program Compliance review, CHFA will allow Participating Lenders to submit a CHFA Form 704 to change the CHFA Second Mortgage Loan from the amortizing second to the new zero percent (0%) deferred second. To do so, CHFA must receive a completed CHFA Form 704 no later than 5:00pm (MST) on August 15, 2014. Unfortunately, CHFA cannot accommodate this change for any loan that has already been logged in our system as submitted for Program Compliance review. Please check with your compliance department for any disclosure modification(s) required due to this change.
Remember to pair CHFA’s new Second Mortgage Loan with our
tiered pricing for added affordability.
Payoff of the Second Mortgage Loan may be due earlier pursuant to the Promissory Note, including upon payoff and/or refinance of the CHFA First Mortgage Loan.