Down Payment Assistance Is Improving Grant CHFA Goes To 4 Percent

Dated: 02/06/2017

Views: 63

CHFA is expanding and enhancing its down payment assistance options for purchase loans to give your borrowers more choices. In early March, the following changes will occur:

·         CHFA DPA Grant


Available for up to 4 percent of the total first mortgage loan amount, the grant may be used for down payment, closing costs, and/or prepaids. This increased flexibility gives your borrowers more ways to use the grant as needed for their home purchase. This 4 percent grant will replace the current 3 percent CHFA DPA Grant.

·         Zero-percent Second Mortgage Loan

Available for up to 5 percent of the total first mortgage loan amount, this product will be a subordinate zero-percent interest mortgage with no monthly payment, but it must be repaid after the payoff/refinance of the first mortgage loan in accordance with the promissory note. It may also be used for down payment, closing costs, and/or prepaids. This product will also have a lower interest rate than the grant, offering your borrowers another affordable assistance option.

·         1 percent Borrower Premium
The current 1 percent Borrower Premium available for purchase loans will be eliminatedwith the introduction of the new 4 percent grant and the 5 percent second mortgage. All Borrower Premium options will remain for refinance loans.

Please note, borrowers may only select one of the two available down payment assistance options. The grant and second mortgage cannot be combined on the same transaction. Both are only available for select purchase mortgages. 

Blog author image

LaDawn Westbrook

With more than a decade of experience, LaDawn enjoys educating first time home buyers, working with the 55+ community, relocation clients, sellers who want to downsize, step up purchase or anything in....

Want to Advertise on this Site?

Latest Blog Posts

OPEN HOUSE In Beautiful Morrison CO June 24

Come see us before Widespread Panic tomorrow night! Or, for some of you, come see us before you go to sleep from seeing Widespread the night before!  Either way...OPEN HOUSE Sunday, June 24th

Read More

Ultra Luxurious Soho Penthouse Is This Weeks Most Expensive New Listing

Highest Listing This Week for a Penthouse in SoHo! Can you quess how much ?!!?? .......$65 MILLION= 8000sqft + 4Beds + 6Baths  The kitchen reminds me of a

Read More

Gorgeous Condo 5 Minutes From The Lake Under 250k

Gorgeous well maintained condo off of C470 and Wads. Quick 5 minutes to the entrance of Chatfield Reservoir. Swim beaches, campground, recreational ponds for paddle boarding, canoeing, kayaking

Read More

Open House In Crystal Valley Ranch Castle Rock

You have to come see this model-like home in the new Crystal Valley Ranch community.  Only one year old, this home is great for those looking for a quiet and secluded neighborhood full of

Read More