Cutting the Red Tape
First of all, let me make sure you are caught up on the past changes to CHFA so you are up to speed.
- CHFA does not have a first time buyer requirement
- CHFA always has funds available for your buyers
- CHFA has down payment assistance for FHA, VA, USDA and Conventional loans with as little as $1,000 down
- CHFA does not require repayment of their down payment assistance
- CHFA offers tiered pricing to reduce closing costs in addition to their down payment assistance
- CHFA no longer has purchase price limits (except on MCC and Home Access)
The BIG Change
And now for the BIG change I mentioned earlier. CHFA has modified the method in which they calculate income to determine if buyer(s) qualify under the CHFA income limits. This probably doesn’t sound like a very big change, but let me explain. Here is a good example of a situation:
- Husband = $38,000/yr in income (he will be on the loan)
- Wife = $38,000/yr in income (she will be on the loan)
- Wife’s Mother = $20,000 in social security income (she will not be on the loan)
Only the Husband and the Wife will be on the mortgage. The TOTAL income for the household is $96,000 which exceeds the Denver Metro income limit of $79,900 for most of CHFA’s programs. Prior to now, this family would not have qualified for CHFA financing. CHFA calculated TOTAL income without consideration as to whether that income was being used to qualify for the mortgage or not. Husband and Wife combined make $76,000 which is under the income limit of $79,900 mentioned above which means they would qualify if we could just use their incomes since they are the only ones on the loan. Well, now we can with the change CHFA just made!
Effective with reservations made on or after March 14, 2016, CHFA will now accept qualifying income for purposes of meeting CHFA income guidelines for all of their programs except MCC, Home Access and SectionEight.
Because of this change we now have more flexibility to qualify your buyers for CHFA financing. If we don’t need that bonus income to qualify and it would push them over CHFA income limits, we remove it from qualifying. If we have a borrower on the loan that we can remove without negatively impacting qualifying and reduce the income below CHFA income limits, we can do this now!
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