CHFA eNews: Home Finance
chfa enews - home finance 
  October 30, 2018

chfa program changes

Effective Monday, November 5, 2018, CHFA will implement the below changes:
  • Statewide Income Limit (excluding CHFA FirstStepsm, CHFA Very Low Income Program (VLIP) and CHFA HomeAccesssm programs)
  • Elimination of CHFA HomeOpenersm programs
  • Elimination of Debt-to-income (DTI) Overlays
  • Manual Underwriting Available on all Programs
  • Additional Property allowed with Freddie Mac loans
  • Elimination of Borrower Premium on CHFA Refinances (excluding CHFA FHA Streamline Refinance)
  • New Lender Premium on CHFA FirstStep Loans with No Down Payment Assistance (DPA)
Statewide Income Limit

CHFA will implement a statewide income limit of $115,600 for its CHFA Advantagesm, CHFA Preferredsm, CHFA SmartStepsm and CHFA SectionEightsm Homeownership programs. This limit is regardless of county, targeted or non-targeted area, or household size.

How does this change affect existing reservations?

Lenders may cancel a loan and reserve a new loan for the same borrower and property only to utilize the new income limit. Please note, the new reservation will be subject to worst case pricing or the Original Expiration Date. Please contact for questions.

Important exclusions: The statewide income limit will not be used for the CHFA FirstStep, CHFA Very Low Income Program (VLIP), and CHFA HomeAccess programs. Please refer to the income limits charts to determine the income limits for each of these programs.

Elimination of CHFA HomeOpener programs

Due to CHFA’s implementation of a statewide income limit, CHFA will no longer offer CHFA HomeOpener programs.

Elimination of Debt-to-income (DTI) Overlays

CHFA will remove its overlays for DTI limits on all mortgage loan programs. In no event may a loan exceed the maximum DTI ratio permitted by FHA, USDA-RD, VA, Fannie Mae, Freddie Mac, and/or the maximum DTI ratio determined by the Automated Underwriting System (AUS) findings, as applicable.

Manual Underwriting Available on all Programs

CHFA will now accept manually underwritten conventional loans, as well as government loans. Should a loan not receive an AUS approval, or if the lender is required to downgrade a loan to a manual underwrite, lenders may choose to manually underwrite government and conventional loans. Loans must be underwritten in accordance with FHA, USDA-RD, VA, Fannie Mae, or Freddie Mac guidelines.

Additional Property

As of October 29, 2018, Freddie Mac will remove restrictions relating to ownership of an additional property under its Home Possible offerings. Given this change, beginning November 5, 2018, CHFA will allow a borrower to own an additional property and utilize a Freddie Mac loan under the CHFA Advantage or CHFA Preferred programs as long as it is to purchase a primary residence.

  • Borrower premiums will no longer be available for CHFA Preferred Refinance or CHFA Advantage Refinance programs. Borrower premium options will remain for the CHFA FHA Streamline Refinance program.
  • CHFA will provide an additional lender premium of 0.25 percent on each CHFA FirstStep loan that has no down payment assistance.
Please contact us should you have questions.
CHFA Home Finance
303.297.7376 or 888.320.3688 Denver
970.241.2341 or 800.877.8450 Western Slope

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