Posted on: 04th Jan, 2009 10:43 am
Hi I am currnetly in the process of trying to buy a home. I am a first time home buyer that is looking to buy a home in Bloomfield, CT. I have been told that i qualify for a CHFA loan. Just wanted to know if I wanted down payment assistance how do I go about applying and will it increase my mortgage payments?
hi guest!
welcome to forums!
in case of chfa loans, you can take the help of a down-payment assistance program. you can contact your lender and get a form to apply for a down payment assistance program. you will have to fill it up and submit. it your form gets accepted, then you can get the assistance program. you should also note that chfa's down payment assistance is not considered as a form of a gift, but instead is an interest-free second mortgage loan.
feel free to ask if you have further queries.
sussane
welcome to forums!
in case of chfa loans, you can take the help of a down-payment assistance program. you can contact your lender and get a form to apply for a down payment assistance program. you will have to fill it up and submit. it your form gets accepted, then you can get the assistance program. you should also note that chfa's down payment assistance is not considered as a form of a gift, but instead is an interest-free second mortgage loan.
feel free to ask if you have further queries.
sussane
hi guest...please excuse sussane for her inaccuracies. she is in alaska so wouldn't know the chfa rules. i am here in bloomfield, actually, and i can fill you in a bit better.
when you apply for your mortgage, we will need to verify your assets. if you have $5000 or less, you'll likely qualify for downpayment & closing costs assistance. chfa requires that you use any amount that exceeds $5000 in the transaction, so if you have $6000, you will be required to use $1000 of your own money. the remainder can come from the DPA loan.
chfa does, indeed, charge interest on its DPA loans. the current rate is 5.25% on both the primary mortgage and on the DPA (second mortgage). if rates were to go above 6%, the DPA loan is capped at a maximum of 6%.
frankly, this is the best deal in the state of connecticut for buyers whose funds are not sufficient. the loans are done as fha products, so there is a mortgage insurance premium due (both up-front and monthly) until equity is built. how long it takes to build equity these days is anybody's guess, though we in connecticut have been hit much less than most other states.
i'm tempted to advertise, but since i fuss at so many others who do it, i won't. at any rate, let us know if you have any other questions about the process.
when you apply for your mortgage, we will need to verify your assets. if you have $5000 or less, you'll likely qualify for downpayment & closing costs assistance. chfa requires that you use any amount that exceeds $5000 in the transaction, so if you have $6000, you will be required to use $1000 of your own money. the remainder can come from the DPA loan.
chfa does, indeed, charge interest on its DPA loans. the current rate is 5.25% on both the primary mortgage and on the DPA (second mortgage). if rates were to go above 6%, the DPA loan is capped at a maximum of 6%.
frankly, this is the best deal in the state of connecticut for buyers whose funds are not sufficient. the loans are done as fha products, so there is a mortgage insurance premium due (both up-front and monthly) until equity is built. how long it takes to build equity these days is anybody's guess, though we in connecticut have been hit much less than most other states.
i'm tempted to advertise, but since i fuss at so many others who do it, i won't. at any rate, let us know if you have any other questions about the process.
guest, i don't know if you've been paying attention to chfa rates, but last thursday they reduced the rate to 5.125%.
this is a wonderful time to buy with prices being as low as they are, and with a rate like that, your purchase will be that much more affordable. as i noted earlier, chfa is a wonderful deal for a first time homebuyer. our office volume is probably 50% or more chfa loans in comparison to other programs.
it's worth discussing some more, no doubt.
this is a wonderful time to buy with prices being as low as they are, and with a rate like that, your purchase will be that much more affordable. as i noted earlier, chfa is a wonderful deal for a first time homebuyer. our office volume is probably 50% or more chfa loans in comparison to other programs.
it's worth discussing some more, no doubt.