Big Changes Coming for CHFA Loans

Last week CHFA announced the following changes will go into effect August 19^th—

• Their Advantage program with 3% down and no MI will no longer be available.
• Their Preferred program and Preferred Plus program will have much lower income limits to 80% the home’s county median household income. Metro Denver’s household median income is $92,800. Thus, the new limit will be approximately $74,240, but will vary by county.
• The down payment assistance as a grant/gift will no longer be available. I believe this is happening because there is not enough Yield Spread in the mortgage bond market for CHFA to provide down payment assistance using this option.
• Borrowers will still be able to get a second mortgage from CHFA for down payment assistance on a conventional loan.