Tuesday, April 14, 2009

CHFA Loans - 99.395% Financing

Need 100% financing with an FHA loan WITHOUT getting a gift or a loan from a relative? Check out CHFA loans. The Colorado Housing and Finance Authority (CHFA) can't quite get you to 100%, but they can get you to 99.395%, which is pretty close.

Only a small percentage of mortgage brokers and lenders are approved to sell CHFA loans, so you might not know how good they are. Here's how they work:

-- There are two loans. The first mortgage is a regular FHA loan. It requires a 3.5% down payment.
-- The second mortgage is for 3% of the first loan amount. The total of the two loans is 99.395% of the purchase price.
-- The interest rate for both mortgages is the same and they are both 30-year fixed rate loans.
-- CHFA requires the borrower to contribute $1,000 towards the purchase.
-- There is an online class that all borrowers must take (it is free).
-- There is no property price limit, but the maximum loan amount for the first mortgage is the same as for FHA loans. They FHA limits went up recently. Check our web site for the details.
-- There is NO first-time homebuyer requirement.
-- The seller can pay up to 6% of the purchase price towards the buyer’s closing costs – more than enough to cover everything.
-- There are income limitations, but they are much higher than for any other down payment assistance program. Check our web site for the income limits.

We have a Quick Reference Guide for CHFA loans on our web site. Follow the link at the bottom of our home page. Here's the link to get to our home page:

www.mtgsupportservices.com

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