chfa downpayment assistance

CHFA Loans – Connecticut Housing Finance Authority Mortgage Assistance

CHFA Mortgage Assistance for Connecticut Home Buyers

The Connecticut Housing Finance Authority, or CHFA, provides mortgage assistance programs to homebuyers in Connecticut. To receive CHFA mortgage assistance, you must be a first-time homebuyer or buying a home in a revitalization zone and qualify for CHFA assistance based on income. CHFA offers both low interest rate loans as well as downpayment assistance.

CHFA mortgages can be used to purchase single family homes, condos, multi-family homes, and even some mobile homes.

The current CHFA interest rate is 3.5% for government insured mortgage loans and 3.75% for non-insured mortgage loans.

CHFA First-Time Homebuyer Mortgages

Under the CHFA, first-time homebuyers and those who have not owned a home in over three years qualify for the First-Time Homeowner program. The Buyer, or borrower, must also mee

There are also income limits as well as property value limits for CHFA mortgages. The Buyer, or borrower, must make less than a certain amount, which is $87,800 for a home of 1 to 2 people, and $100,970 for a home of three or more people. There are also some income limit differences depending on the town you are looking to purchase in. The property value limits also vary by town. The income and property value limits for specific towns are listed here: CHFA Income & Value Limits by Town.

CHFA Down Payment Assistance

As a separate service from its low interest mortgage loans for low-income households, CHFA also offers downpayment and closing cost assistance. Down Payment Assistance is offered to borrowers who can afford to pay both loans but lack the savings to make the downpayment (less than $10,000.00 total household savings).

The minimum for Down Payment Assistance loan amount is $3,000, with the maximum being the minimum downpayment amount for the actual CHFA mortgage. In most cases, the Down Payment Assistance interest rate will match the CHFA mortgage interest rate, but it can vary and could be up to 6%.

CHFA Revitalization Zones

CHFA also offers mortgage assistance for homebuyers looking to purchase homes in certain areas marked for revitalization. These are areas where the Federal Government has determined would benefit from and increase in home ownership.

In the CHFA Revitalization Zones, the first-time homebuyer requirement is suspended, 1/4% reduction in CHFA published interest rate, income limits do not apply unless also seeking downpayment assistance, and mortgage insurance may be suspended.

In Connecticut, these revitalization areas include Ansonia, Bridgeport, Danbury, Derby, East Hartford, Groton, Hartford, Manchester, Mansfield, Meriden, Middletown, New Britain, New Haven, New London, Norwalk, Norwich, Stamford, Torrington, Windham and Waterbury.


The Lender you choose can give you more information about the details, costs, benefits and downsides of a CHFA mortgage. Click for a List of Participating CHFA Lenders

maximum fha loan amount

Federal Housing Finance Agency “FHFA” Raises FHA Loan Limits for 2017 – First Increase Since 2006

FHFA Announces Increase in Maximum Loan Amounts for Conforming “FHA” Mortgages

There is some good news for those people looking to buy a home in 2017. The Federal Housing Finance Agency, or FHFA, has announced that for the first time since 2006, they will be raising the maximum conforming loan limits for FHA mortgages.

FHA mortgages, for those that may not be aware, are those that are insured by the Federal government. FHA mortgage loans are popular because they allow prospective home buyers to put as little as 3.5% down to buy.

How is the FHA Maximum Mortgage Loan Limit Calculated?

The baseline loan limit for FHA mortgages was set back in 2008 through the Housing and Economic Recovery Act (HERA). HERA sets the baseline FHA mortgage loan limit at $417,000 with a yearly review and adjustment based on the average home price nationally. However, we all know that home prices vary greatly across the country. Therefore, the FHA raises mortgage loan limits in high-cost areas; where the median (or mid point) of home values is greater than 115% of the baseline loan amount. The maximum increase in high-cost areas is to 150% of the baseline.

What are the 2017 FHA Mortgage Loan Limits?

The FHFA Housing Price Index for the third quarter of 2016 increased for the first time since the third quarter of 2007, on which the HERA baseline was calculated. The increase in the Housing Price Index between the two periods was about 1.7%. Therefore, the baseline FHA loan amount for conforming mortgages is being increased from $417,000 to $424,100. The maximum FHA mortgage loan amount is further increased to up to $636,150 for high-cost areas.

Fairfield County, Connecticut is considered to be a high-cost area under the FHA guidelines. The Maximum FHA mortgage loan amount for Fairfield County is $601,450. This is just $34,700 less than the FHA absolutely maximum allowable mortgage loan amount for the highest cost areas in the country.

Why Buy With An FHA Loan?

A stated above, FHA mortgage loans are popular because they allow the Buyer to put less than 20% down, often as low as 3.5%. Additional benefits are refinancing without appraisals and FHA mortgages being assumable by future Buyers.

However, FHA loans require mortgage insurance premiums (MIP) for any loans with less than 20% down. There is both an “up front” fee that is paid at closing as well as monthly payments. MIP is an additional expense that home buyers should consider when deciding between FHA and other loan types.