An ad for down payment assistance, specifically CHFA, was brought to my attention over the weekend. This ad stated that CHFA would contribute 4% of the loan amount towards the down payment. This is not true, CHFA has programs that contribute up to 5% and these are the most popular of the options. After seeing this ad, it made me think about all of the people, homebuyers, lenders and Realtors, included, who really don’t understand how CHFA works and in what situations it can be used to save the day. I am all about saving the day and getting people into homes of their own. The CHFA program is a great tool for many people and with the higher income limits, over $115k per year, the flexibility to remove a buyer or to only use base income to qualify, no max loan amount, Conventional and FHA options, no max debt to income ratio, and credit scores down to a 620 without an interest rate adjustment, it is a great option for almost everyone. And… if the seller will agree to cover the closing costs, typically $5500 to $6000, the buyer can truly purchase a home with $1k out of pocket, that is CHFA’s minimum borrower contribution. There are so many beneficial ways to utilize programs like CHFA, you really need to be sure that you are taking advantage of the best program to fit your needs.
If you’ve been following the real estate market at all, you’ve probably picked up on the fact that property values have been