• Income limits are now based on two buckets (1-2 Person Household & 3+ Person Household)
• Higher income limits in targeted areas
• First time homebuyer restriction removed for targeted areas for all CHFA programs

Two Income Limit Buckets

Previous to this recent change, CHFA had three income buckets.  The buckets were for 1, 2 or 3+ person households.  They have eliminated the bucket for 1 person households which are now part of the 2 person bucket now labeled 1-2 person household.  Here are the new income limits in Denver Metro for First Step, First Step Plus and MCC with CHFA:

Previously, the income limits for a 1 person household size was much lower (a bit over $60,000).

Targeted Area Income Limits

The income limits have been increased and are also put into two buckets as mentioned above.  Here are the revised targeted area income limits for Denver Metro:

Visit CHFA’s website for a full list of target areas.

Non-First Time Homebuyers Now Allowed

Here is a direct quote from CHFA about this change:

CHFA has removed the First Time Homebuyer restriction for the CHFA FirstStep, CHFA FirstStep Plus, and CHFA MCC programs for all loans made or CHFA MCCs issued on properties located in a Targeted Area.

However, and most pertinent, Section 1006 (e) of ARRA also eliminated the prohibition of the Borrower’s access to the federal First-Time Home Buyer Tax Credit if their loan was financed with Mortgage Revenue Bonds (MRBs).

The CHFA FirstStep and CHFA FirstStep Plus programs, made available on February 1, 2010, are funded with MRBs. Many ARRA or federal First-Time Home Buyer Tax Credit-related websites have not been updated to highlight this specific provision of the law; however, the actual IRS Form 5405 has been updated to reflect this change. Click here to read complete ARRA bill as written.

The Wynn Team has found that the National Association of Home Builders website created for the First Time Home Buyer Tax Credit has the most comprehensive information and the best FAQ page of any other site.  By the way, they have updated the MRB inclusion.

This is important because qualified first time home buyers who need down payment assistance and want to take advantage of the First Time Home Buyer Tax Credit before it goes away can finance a home with competitive market rates.

Lending A Hand

Marla Wynn

The Wynn Team

• Long term mortgage rates are at 20-30 year lows
  • According to Freddie Mac, in a press release yesterday, the average rate on a 30-year fixed mortgage was 5.01% this week, up from 4.98% last week.  Last year at this time, the average rate for a 30 year fixed mortgage was 5.25%.  Rates fell to a record low of 4.71% average in early December
• FHA allows 6% seller concessions (may decrease to 3% this summer)
• FHA up front mortgage insurance is currently only 1.75% (set to increase to 2.25% on April 5)
• FHA 90 day flipping rule waiver is in effect until February 1, 2011
• CHFA (Colorado Housing and Finance Authority) has financing for buyers with credit scores as low as 580
• CHFA has down payment assistance programs available
• CHFA can offer loans with market interest rates and down payment assistance with the FirstStep Program
• CHFA MCC (Mortgage Credit Certificates) are available
• Fannie Mae is offering 3.5% incentive to buyers purchasing Fannie Mae owned properties
• HomePath financing is available for Fannie Mae owned properties
• The First Time Home Buyer Tax Credit is available
• Move Up Buyers receive a $6,500 tax credit
• Home values expected to increase from November 2009-2010

If you were on the fence before reading this, we hope this spurs you into action and clears up any confusion or questions about the benefits of purchasing now.  If you have any questions, please contact us.

Lending A Hand

Marla Wynn

The Wynn Team

• Closing Costs
• The purchase of new Whirlpool appliances by Fannie Mae or
• A mix of closing costs and appliances, at the buyer’s discretion, up to the maximum 3.5%

To be eligible for this incentive:

• Offers must be accepted on or after January 28, 2010
• Property sales must close before May 1, 2010
• Buyers must be owner-occupants, investors are excluded

This is an incentive part of the ongoing effort to stabilize these neighborhoods.  Terry Edwards, Executive Vice President of Credit Portfolio Management had this to say:

Attracting qualified buyers to the market and reducing the inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover. Many families are taking advantage of the federal homebuyer tax credit to buy a new home so this is a great time for Fannie Mae to offer some additional help.  Homebuyers have the option to choose between financial assistance toward closing costs or new appliances for their home.

Properties eligible for this incentive are listed on the HomePath website and most listings include detailed property descriptions, photographs, community and school information and more.  In addition, many Fannie Mae owned properties are eligible for special HomePath Mortgage financing which offers homebuyers an opportunity to purchase with as little as 3% down.  As of this posting, there are 930 homes available in Colorado.

If you are interested in the special HomePath Mortgage financing, you will want to be sure to find a lender who is participating in this program.  There are currently only 20 lenders in the entire state of Colorado, of which we are one.  If you would like to apply online for financing, you can do it through our website.

The HomePath website allows you to put in very specific search criteria to find a home in your desired area that fits your needs.

Lending A Hand

Marla Wynn

The Wynn Team

CHFA FirstStep

Through the sale of non-taxable mortgage revenue bonds, CHFA is able to offer mortgage rates at or below market interest rates for first time buyers (anyone who has not owned a home for the past 3 years).

CHFA FirstStep Plus

Same program as the FirstStep with the addition of a second mortgage loan to assist with down payment, closing costs, prepaids and/or temporary buy downs.  The maximum amount of the second mortgage is 3% of the first mortgage amount.

Income Limits

Both of these programs do have income limits associated with them.  The entire household (everyone over 18 who will live in the home) must be below the total income as follows:

• 1 Person Household = $60,800
• 2 Person Household = $76,000
• 3+ Person Household = $87,400

Additional Restrictions

• CHFA is only available within the state of Colorado
• Borrowers must work with a CHFA Approved Lender
• Can not be combined with the Mortgage Credit Certificate
• Must be owner occupied and qualify for FHA, VA or USDA Mortgage Loans
• Additional restrictions may apply and details can be found at CHFA

Interest Rates

Rates can change at any moment but at the moment I type this the First Step Rates are:

• FirstStep = 5.000%
• FirstStep Plus = 5.25%
• Rates can be found on the CHFA website at http://www.chfainfo.com/lender/Single_family_lending_partners_and_realtors/Todays_rates.icm

Lending A Hand

Scott Wynn

The Wynn Team