New Refinance Programs from CHFA effective Monday, September 22, 2008

CHFA is rolling out two additional refinance programs to assist borrowers, both providing Borrowers with thirty (30) year fixed rate term for the rate and term refinance of an existing first mortgage or subordinate lien into an FHA product.

Taxable Home Opener Refinance Program
This Program may be used for any non-streamline fixed rate FHA product.
Program Directive
Program Matrix

CHFA FHA 203(k) Refinance Program
The Program may be used for any fixed rate FHA 203(k) product. Lenders who originate Taxable 203(k) mortgage loans sold to CHFA, whether refinance or purchase, will receive an additional Program Premium of 1% UPB.
Program Directive
Program Matrix

Requirements for both Programs:

• No cash back to the Borrower is allowed
• One thousand dollar ($1,000) Minimum Financial Investment
• Completion of the online CHFA Money Management course, or other CHFA-approved Homebuyer Education, is required
• Eligible FHA Total Scorecard findings are Accept/Approve
• Maximum LTV/CLTV: 97%/100% with a CHFA Second (CHFA may allow additional subordinate financing on a case-by-case basis)
• Maximum acceptable ratios for a manual underwrite are 31%/43%
• Temporary Interest Rate buydowns are not permitted in this Program
• The new Mortgage Loan amount may include (if there is sufficient equity):
  • unpaid principal balance of existing first mortgage
  • unpaid principal balance of purchase money second mortgage
  • repairs pursuant to HUD’s 203(k) program [for CHFA FHA 203(k) Program only]
  • the amount required to satisfy any subordinate mortgage lien or dormant HELOC
  • closing costs for the new Mortgage Loan
  • prepaids for the new Mortgage Loan
• Borrower must meet CHFA income limits and FHA loan limits
• Complete list of CHFA Forms applicable to these Programs

Please contact the Home Finance division with any questions. 303.297.7376 or 1.888.320.3688 (970.241.2341 Western Slope)

Thank you,
CHFA Home Finance