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Hans Fetterhoff

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How CHFA Can Open Doors To Home Ownership

02-15-10
Hans Fetterhoff

I'm sure most of you have a preconception of what CHFA is or what CHFA is all about. Most of what I heard before I became a lender was always negative. There was always a stigma associated with it, like it was for people with bad credit or the recapture tax was terrible, or the compliance review took too long and even that CHFA was broke.
Well now after experiencing a few first hand, I have to say that you’re missing out if you don't consider a CHFA mortgage for yourself or for your buyers if you’re an agent. A CHFA loan can definitely open doors with its down payment/closing cost assistance program and as the market swings back in the seller’s direction; I see the popularity of CHFA mortgages only increasing.
First, let’s dispel the myths and negativity associated with this program:
• CHFA is not broke and never was, it's bond program was suspended for a short period of time but they were always solvent and lending.
• Compliance reviews are currently at 24-48 hrs
• There is only one program out of 4 that has a recapture tax associated with it and CHFA will reimburse you if you ever have to pay it!
• This isn't just a program for folks with credit challenges; buyers with great credit can take advantage of the down payment assistance programs as well. Unfortunately this is the only option for buyers who have credit scores between 580-619 and buyers with no credit scores at all.
CHFA currently has four programs available designed for first time home buyers and non first time home buyers and is currently the only way to monetize the $8000 tax credit. Most programs have a down payment/closing cost assistance component that typically comes in the form of a second mortgage. Even though this second mortgage has to be paid back it is still very affordable because it is amortized over thirty years and it's typically a very small loan in the first place.
The two most basic requirements are that the buyers take a buyers education class and that they contribute a minimum of $1000 to the transaction.
All-in-all it's a very useful program and for the right person can open doors that would have been closed otherwise. Please consult with your CHFA approved mortgage lender or contact me with any questions 719-686-3652.
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Down Payment Assistance Programs Are Back In Vogue In El Paso County

02-09-10
Hans Fetterhoff

Well they never really went out of style, except for the seller funded stuff.

As a Mortgage lender that specializes in home purchase transactions in Colorado Springs, the biggest challenge that I see keeping potential homeowners from purchasing a home today is the lack of a down payment.

When applying for financing, especially in today's market, the amount you have saved for your down payment really dictates the type of financing that will be offered to you even if your you have great credit. If the down payment requirement is the only thing holding you back from the benefits of being a homeowner, then I have some great news!

If you live in El Paso County you may qualify for grant through the El Paso Co Mortgage bond program. This grant can equal 3% of the loan amount and it never has to paid back! This grant works very well in unison with an FHA loan which requires only 3.5% down.(It can also be used with VA or USDA Financing). For example, if you were looking to buy a home that was listed for sale at $150,000 under current FHA guidelines you would need $5250 down. If you were to use this program the grant would be for $4342 which means you only need $907.

This program isn't for everybody and has some stringent guidelines regarding income and credit score, not to mention a possible recapture tax if the home is sold within 9 years.

Below are some highlight but make sure you speak to a qualified mortgage profesional about your scenario before you apply for this type of financing.

  1. Minimum Credit Score 600
  2. First Time Home Buyers Only(Except in target areas)
  3. Maximum Loan Amount $283,000(Higher in Target Areas)
  4. Family income no greater than $71,000 for a 2 person household or $81,650 for a 3 person household or more. (Higher in target areas)
  5. Interest Rate 5.125%/5.238%APR
  6. 30 Year Fixed Rate Mortgage

Get Started With Are Quick Pre-Qualification Form!

Hans Fetterhoff

Mortgage Banker

CMB #100009597

Crestline Mortgage

"A Division of Universal Lending Corp"

Twitter: CoMortgagePro

www.SpringsHomesAndLoans.com

www.ColoradoSpringsMortgagePreApproval.com

You're Better Off With Fetterhoff"

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