The mission of Colorado Housing and Finance Authority (CHFA) is “to strengthen Colorado by investing in affordable housing and community development.” How? They offer many services to help people to achieve their dreams of owning a home and recent changes have made it even easier to qualify!
First of all, let’s discuss the current CHFA guidelines…
- 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)
And now for the new change…
CHFA has modified the way in which they calculate income to determine if the buyer(s) qualify under the CHFA income limits. This change will take place beginning March 14, 2016. It may be easier understood by illustrating the change rather than trying to explain in words. Take a look at this example:
- 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!
Basically, the changes are allowing for more flexibility with the CHFA qualification process. To take advantage of this great opportunity, contact us TODAY @ 720-593-2014. We can put you in contact with a CHFA lender so together, we can start making your real estate dreams come true! We look forward to hearing from you!