Monday, February 13, 2012

Earnest Money and CHFA Loans

CHFA (Colorado Housing and Finance Authority) offers down payment and closing cost assistance for Colorado home buyers and they only require the buyer to contribute $1,000 of their own money to the transaction.

However, if a buyer pays more than $1,000 in earnest money, they are NOT allowed to get the amount that is in excess of $1,000 back at the closing. So make sure that when your buyer is getting a CHFA loan, they only pay $1,000 in earnest money.

Have a buyer who needs a CHFA loan? Send them to us and we'll take care of everything for you.


Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com


By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

2 comments:

rick said...

I was told I qualified for a chfa loan and paid earnest money, appraisal cost, and inspection. Then they told me I don't qualify after all of that because me and my SO make too much based on a projection in current year of earnings from January to February. Is there anything I can do? Please help!

Chris and Debbie Thomas said...

Rick,

If you earn too much to qualify for CHFA, you should get a regular FHA loan instead. The interest rate will be lower and you only need 3.5% for a down payment. You can get the down payment as a gift or a loan from a relative.

If you just want to get out of the deal altogether, you can get your earnest money back by telling the seller in writing that you can't get the loan. You will need to do that before the loan conditions deadline date listed in your sales contract. Ask your real estate agent for help with that.

You should also get a different lender. Any good lender will check your income to see whether you qualify before you start spending money.