Last Updated | 1/11/2024 12:00:00 AM |
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Program Name | Colorado Housing and Finance Authority (CHFA) SmartStep |
Loan Type | FHA |
Max Assistance | CHFA SmartStep has no assistance, however a MWF-approved community second program may be layered. |
Max LTV/CLTV | FHA Guidelines 96.5%/105%. |
Min FICO Score | 620 minimum |
Max DTI Ratio |
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Property Type | Single family, one-unit condominium, PUDs, townhomes, manufactured homes. ADUs are acceptable if:
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First-Time Homebuyer | Not restricted to first time homebuyers. |
Max Sales Price/Max Loan Amount | Loan limit: Lower of conforming limit of $766,550 or the limit shown on CHFA’s Program Matrix. Loan limit includes MI/MIP. Sales price limit: No purchase price limits except for FirstStep, where lower of Program Matrix Loan Limit or FHA Mortgage Limits apply. Continue to use the lower of $647,200 or the applicable 2022 program loan limit determined by FHA, VA, USDA-RD, Fannie Mae, or Freddie Mac®, plus any financed MI, MIP, VA Funding Fee, USDA-RD Guarantee Fee, or 203(k) rehab funds, as applicable. Please keep in mind that loan limits may never exceed purchase price limits, when applicable. |
Product Codes | FF30CHFASP - FHA FIXED 30YR CHFA SMARTSTEP |
Special Alerts/Comments | With the new self-service features in HomeConnection, lenders can lock a loan for a past or current CHFA borrower. However, please keep in mind:
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These program parameters pertain to the housing agency’s guidelines as of the last known agency change. Program guidelines should be confirmed with the respective agency prior to loan submission to ensure the use of the most current parameters. When combined with any program, the stricter guidelines will always prevail.
Program Name | Colorado Housing and Finance Authority (CHFA) SmartStep |
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Maximum Assistance Amount | CHFA SmartStep has no assistance, however a MWF-approved community second program may be layered. |
Program Type | 1st Mortgage |
State | CO |
County | Statewide |
Repayment | Due upon maturity, sale, refinance or if property is no longer owner occupied. |
Special Alerts/Comments | With the new self-service features in HomeConnection, lenders can lock a loan for a past or current CHFA borrower. However, please keep in mind:
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Use of Funds | Down payment, closing costs and/or prepaids. |
Interest Rate | See Today's Interest Rates. No LLPAs. |
Status | Active |
Eligible 1st Mortgage Type | FHA |
Eligible 1st Mortgage Types Notes | Fully Amortizing 30-year Fixed Rate. |
MCC Permitted | Yes |
Mortgage Insurance | Follow FHA guidelines. CHFA must have evidence a Mortgage Loan is insured. |
Equity Sharing | Does not have equity sharing. |
Last Updated | 1/11/2024 12:00:00 AM |
Comments |
First Time Homebuyer | Not restricted to first time homebuyers. |
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Homebuyer Education Requirement | Except for permitted refinance loans, Home-Buyer Education is required for all borrowers and co-borrowers prior to closing regardless of FTHB status. For a CHFA-approved homebuyer education course, prior to the closing date. See CHFA Approved Homebuyer Education Course Providers. Framework HBE courses will not be accepted after 1-1-21. Certificates are valid for one year. |
Income Limits | See Income Limits. |
Income Calculation Method |
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Minimum FICO | 620 minimum |
Debt To Income Ratio |
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Borrower Contribution | $1,000 minimum investment required (own funds or gift). CHFA funds may not be used to fund appraisal gaps, CHFA’s Minimum Borrower Financial Contribution, any additional real estate broker or agent fees, or to pay off debt. |
Maximum Assets | N/A |
Minimum Reserves | N/A |
Other Borrower Eligibility Requirements | DACA status applicants are eligible to apply for FHA financing. The following FHA requirements include:
All other requirements per FHA’s 4000.1 The Employment Authorization Document is required to substantiate work status. If the Employment Authorization Document expires within one year and prior history of residency status renewals exist, you may assume that continuation will be granted. If there are no prior renewals, you must determine the likelihood of renewal based on the information from the USCIS. |
Co-Signers | Not Allowed |
Non-Occupant Co-Borrowers and Co-Signers | CHFA does not allow cosigners or non-occupying co-borrowers. CHFA does not permit non-borrowing spouses or others not obligated to the underlying mortgage loan to take title to the subject property. Only borrowers on CHFA loan may take title. |
Eligible Property Types | Single family, one-unit condominium, PUDs, townhomes, manufactured homes. ADUs are acceptable if:
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Maximum Units | 1 |
Ineligible Properties | Investment, 2-4 units, co-ops, non-warrantable condominium, vacation and second homes, singlewide manufactured homes, excess acreage. |
Occupancy | Home must be primary residence. |
LTV/CLTV | FHA Guidelines 96.5%/105%. |
Max Sales Price/Max Loan Amount | Loan limit: Lower of conforming limit of $766,550 or the limit shown on CHFA’s Program Matrix. Loan limit includes MI/MIP. Sales price limit: No purchase price limits except for FirstStep, where lower of Program Matrix Loan Limit or FHA Mortgage Limits apply. Continue to use the lower of $647,200 or the applicable 2022 program loan limit determined by FHA, VA, USDA-RD, Fannie Mae, or Freddie Mac®, plus any financed MI, MIP, VA Funding Fee, USDA-RD Guarantee Fee, or 203(k) rehab funds, as applicable. Please keep in mind that loan limits may never exceed purchase price limits, when applicable. |
High Balance Loan Amount | N/A |
Home Warranty / Termite Inspection | N/A |
Additional Subject Property Requirements | N/A |
Other Property Owned | Borrowers may own one other property at closing. Borrowers may only have one CHFA loan at a time. |
Hazard Insurance | At closing: Mountain West Financial Inc. its Successor and/or Assigns 31 W Stuart Ave, Ste. 200 Redlands, CA 92374 Upon sale: Colorado Housing and Finance Authority, Its Successors and/or Assigns P. O. Box 961292, Fort Worth, TX 76161-0292. The CHFA 2nd does not require Hazard Insurance |
Hazard/Flood Insurance Max Deductible | MWF lender guidelines. |
Impound Requirements | Impound accounts are required.
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Appraisal Requirements | Standard appraisal procedures apply. |
Comments | None |
Lender Participation Info | Required |
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Training Requirements | Required: Lender and Back Office Training. |
Comments |
1st Mortgage Origination Fee | 1%, No discount points are allowed. |
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1st Mtg Underwriting Fee | $795 to MWF. |
1st Mortgage Processing Fee | Standard processing fee of $695. |
1st Mtg Tax Service Fee | N/A (included in MWF fees). |
Compliance Review Fee | N/A |
Master Servicer Funding Fee | N/A |
Other 1st Mortgage Fees |
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2nd Mortgage Processing Fee | N/A |
Other 2nd Mortgage Fees |
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Other Fees |
Lock Time Frame | Locks are tied to the borrower and the specific property. Locks are available for up to 30 days. There is no cost reduction for shorter lock periods. It is strongly recommended that loans obtain full approval before locking on CHFA programs. Loans that are locked prior to full approval and subsequently cancel due to the Borrower not meeting CHFA requirements may be subject to a $100 cancellation fee. |
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# Days for Rate Lock | 30 days CHFA Locks in “Reserved” status will automatically be canceled and a possible fee assessed unless one of the following actions has taken place prior to the Lock’s Expiration Date:
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Extension Policy | Locks can be extended one time for 30 days at 0.350% cost. This fee can be charged to the borrower or seller. The loan must be extended on or before the original lock expiration date. If a loan is changed from one CHFA program to another CHFA program, the interest rate in effect for the new program at the time of the original lock will be used. |
Cancelation Policy | If a lock is canceled and is to be re-instated within 30 days of cancellation, the lock shall be subject to worse case pricing between current rates and the original rate. Should a borrower no longer be purchasing the property listed on the reservation, the lender must cancel the loan and make a new reservation. |
Additional Lock Requirements | See rate lock policies and procedures. Discount points for lock extensions are not allowed |
Loan Submission | The Originator is to follow standard input procedures that apply to a regular 1st mortgage. |
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BOLT Input | Originator is to submit loan in BOLT. Originator is to issues initial disclosure. |
Product Code | FF30CHFASP - FHA FIXED 30YR CHFA SMARTSTEP |
Linked Loan Product Code | |
Comments | Submission Checklist & Forms |
1st Mortgage Registration and Disclosures | The Originator or Processor will be responsible for issuing a Full Disclosure Package on the 1st, as the Originator or Processor does now on a standard 1st mortgage file. CHFA accepts electronic signatures for initial disclosures; CHFA Form 401, Initial Applicant Affidavit; initial loan applications; letters of explanation; and purchase contracts, subject to and as provided in the CHFA Seller’s Guide. |
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2nd Mortgage Registration and Disclosures | CHFA requires a loan estimate for their silent second mortgage. |
Closing Disclosure | Standard CD procedures apply |
QM | CHFA is exempt |
HPML |
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Comments | None |
AUS |
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Manual Underwriting |
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Gift Funds | Allowed |
Seller Contribution | Follow 1st mortgage guidelines. |
Prior-to-Doc Conditions | Except for permitted refinances, the Homebuyer Education certificate must be in the file. |
Prior-to-Funding Conditions | Standard prior-to-funding conditions apply. |
Compliance File | CHFA does not conduct a Compliance review on the Preferred and SmartStep Programs. Other CHFA programs require CHFA Compliance review. |
MWF Overlays | No Escrow Holdbacks. |
Comments | Identify CHFA as the secondary financing source in FHA Connection. Select ‘Government’ from the Source of Funds drop down memo in the Secondary Financing Section in FHA Connection. In addition, Lenders need to identify CHFA by the HUD Lender ID, which is ‘05366’, and not the EIN.
The Underwriter is to review and validate the Computation Worksheet completed by the Loan Processor. If the Underwriter makes any changes or corrections to the computation worksheet, he/she must re-run then DU.
CHFA will provide the DPA Award Letter after CHFA’s review and approval.
To obtain CHFA approval, Underwriter will provide the following to the branch. The branch will deliver the items to CHFA:
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Lien Position | N/A |
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MERS |
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Max Cash Back | Excess funds from DPA may not result in cash back. |
Excess Funds | Follow 1st mortgage guidelines. |
Escrow Holdbacks | N/A |
Doc Provider | MWF |
Note Holder | Only the first mortgage is closed in the name of MWF. |
Requesting Docs | The process will remain the same as a standard mortgage file. The 1st mortgage docs are pulled from LQB. See HomeConnection for checklist. |
Wiring of Funds | MWF Funds |
Notice Prior to Funding | N/A |
Title Insurance | It must be listed under schedule B.1 |
Required Documents | Standard 1st mortgage documents are closed in the name of MWF and are pulled from LQB. See for Check List for required docs. |
Late Payment Information | Follow 1st mortgage guidelines. |
Collateral Process | Endorsement is sent to the warehouse financer blank. Post Closing will request endorsement to CHFA at shipping. |
Funding Source | Government |
DPA Source Documentation | N/A |
Comments | CHFA Form 305, CHFA Second Mortgage Loan Promissory Note, and CHFA Form 310, CHFA Second Mortgage Deed of Trust must be used. Lender cannot use their own Nor or DOT. eSign can be used for the Initial disclosures and initial application. |
Credit Package Delivery Checklist | See Purchase Review Checklist. Post Closing is to complete CHFA forms 726, 728, 747, Purchase Review Submission Voucher and 738 Post Closing Submission Voucher. Please assign a value to all personal property on the CHFA Form 402, Final Application Affidavit: Washer/Dryer and Microwave (if not built in). |
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Compliance File Delivery/Checklist | See Compliance Review Checklist. |
# of Days to Purchase File | Must be delivered within 60 days of registration. |
Post Closing Requests | CHFA must receive all final documents within 120 calendar days after CHFA purchase, otherwise a Final Document Late Fee is assessed. The Final Document Late Fee will increase from $150 to $250 and be assessed at day 121. Thereafter, a fee of $150 will be assessed every 31 days until the loan is in Post-Closing Complete status. |
Post Closing Additional Requirements |
Offering Agency | Colorado Housing and Finance Authority (CHFA) |
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Agency Contact Information | Main: (303) 297-2432 Toll Free: (800) 877-2432 Carmen Cardenas, Business Development Specialist: (303) 297-7308 [email protected] Shelly Ervin, Senior Business Development Specialist: (303) 297-7358 [email protected] |
Website Links | Colorado Housing and Finance Authority |
Program Flyer/Guidelines | See Forms and Matrices. |
Program Provider Type | Government |
Address | 1981 Blake Street Denver, CO 80202 |
Master Servicer | Colorado Housing Finance Agency |
EIN/Tax ID | CHFA’s EIN is 84-0676451 (HUD Lender ID is 05366) FHA Connection: Identify CHFA by the HUD Lender ID, which is ‘05366’, and not the EIN. |
Investor | Colorado Housing Finance Agency |
Program Administrator | Colorado Housing Finance Agency |
Comments | None |