chfa is making homeownership even more affordable
CHFA is excited to announce that we are changing how we offer down payment assistance (DPA). CHFA is planning to replace the CHFA Second Mortgage Loan with a CHFA DPA Grant . The CHFA DPA Grants will be:
We are announcing this proposal to you now, so you are able to make any adjustments to your internal systems and inform your borrowers that a CHFA DPA Grant option will soon be available to them under the following programs:
- be in an amount of 3% of the first mortgage loan, and
- assist with down payment, closing costs, and/or prepaids.
We currently anticipate that the CHFA DPA Grant option will be effective for all loans reserved on or after February 2, 2015. Due to system constraints,
we will be unable to transfer existing reservations. However, for loans in a reserved status only, you will be able to cancel that loan and make a new reservation.
If you choose to cancel an existing reservation, not delivered for compliance review, the 30 day lock-out for a new reservation will be in effect or be subject to worst case pricing.
- CHFA Preferred Plussm
- CHFA SmartStep Plussm
- CHFA HomeOpener Plussm
- CHFA SectionEight Plussm
Funding of the CHFA DPA Grant will follow the same process as our current CHFA Second Mortgage funding process. The Participating Lender will continue to 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 these grants.
Thank you for your continued partnership and we look forward to an exciting 2015.