CHFA Changes

Over the weekend, CHFA made some major changes that I expect will make the program much more meaningful in Southeastern Connecticut.  For all CHFA loan reservations on or after November 25, 2013, we are excited to announce the following changes: 

• The amount of liquid assets borrowers will be allowed to retain is increasing from $5,000 to $10,000.
• 100% of the funds in any retirement plan including, but not limited to IRA accounts and 401k plans may be excluded from asset calculations when determining if a client is eligible for down payment assistance, even if the plan allows for the applicant(s) to withdraw funds from the plan.
• When determining whether or not an applicant meets CHFA’s regional income limitations, the income used to determine eligibility will be basedsolely on the income of the borrower.   We will no longer be required to document or verify the income of any person (dependent, relative, orspouse) who will occupy the property if that person is not an applicant and will not sign the mortgage note/deed. Although the qualifying income for the CHFA income limits will be based solely on the income of the borrower(s), family size will still determine the amount of income they may earn. 
• CHFA will no longer require borrowers to include 100% of rental income from 2-4 unit properties when determining whether a file is in compliance with CHFA income limits.  The amount of income from the rental units will now be calculated based on the anticipated fair market income consistent with the loan program.
• CHFA will be decreasing their standard rate lock period and commitment expirations from 120 days to 90 days.

Written by Jay Johnson, Darien Rowayton Bank  (DRB) 860-739-0704

NMLSR #149795