Update on CHFA Loans

Earlier this week a first time home buyer called me looking for help with buying their first home with no money down. Neither one of them are a veteran of the military, so a VA loan is not possible. Second, their income is too high for any down payment assistance loans except for CHFA loans.

Here are two things I learned about CHFA loans this week. First, their interest rates are incredibly high right now at around 8%. Ouch! Why? They usually run out of money near the end of the year and maybe the credit crunch is hitting them too.

Second, I learned that first time home buyers who use CHFA funds which primarily come from tax exempt bond sales do NOT qualify for the $7,500 first time home buyer tax credit. That really sucks!

So, be aware and educate your clients.