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Home Finance
Check out CHFA's HomeStretchsm Program -
a True 40 year loan!
The CHFA HomeStretch Program offers a conventional Mortgage Loan with a forty (40) year fixed rate term
for either the acquisition of a home or the rate and term refinance of an existing first mortgage
(and any subordinate lien with twelve [12] months seasoning).
Conventional insured Mortgage Loans will be insured with up-front lender paid mortgage insurance (LPMI) provided by Genworth Financial or Republic Mortgage Insurance Corporation.
| Mortgage Insurance Coverage and Premiums 95.01 – 97.00% LTV*: 20% coverage: 1.61% premium 90.01 – 95.00% LTV: 18% coverage: 1.43% premium 85.01 – 90.00% LTV: 16% coverage: 1.24% premium < 85.00% LTV: 12% coverage: .95% premium |
*A
note about LTV: Participating
Lenders must verify the maximum LTV/CLTV with the applicable insurer according
to property type and other insurability restrictions.
Program Comparison
| term | 30 year | 40 year | ||
| program | MRB FirstStep |
MRB FirstStep with 2nd mortgage |
CHFA HomeStretch |
CHFA HomeStretch with 2nd mortgage |
| loan amount | $150,000 | $150,000 | $150,000 | $150,000 |
| interest rate | 6.25% | 6.50% | 7.25% | 7.50% |
| P&I payment | $923.58 | $948.10 | $959.51 | 987.11 |
| monthly MI | $97.50 | $97.50 | n/a | n/a |
| total payment | $1,021.08 | $1,045.60 | $959.51 | $987.11 |
Features
- CHFA Second Mortgage Loan is available for all Borrowers
- Involuntary unemployment insurance is provided for all Conventional Insured Borrowers
- Single-premium lender paid mortgage insurance (LPMI) will be reimbursed at Purchase
- Optional budget drafting payment plan significantly reduces the total interest paid and decreases the effective term of the Mortgage Loan from forty (40) years to approximately thirty (30) years
Automated Underwriting Systems
CHFA requires all Mortgage Loans be credit underwritten prior to CHFA's Compliance Review. Participating Lenders should be aware that refinances underwritten by DU or LP may receive a finding of Expanded Approval or A-Minus, rendering the loans ineligible for CHFA financing. CHFA recommends refinances to be manually underwritten to avoid this problem. DU (Desktop Underwriter) and LP (Loan Prospector) may be used for acquisition loans. CHFA will decline any Mortgage Loan with AUS findings of Expanded Approval or A-Minus.Find out more about CHFA HomeStretchsm
