Repayment shall be due and payable at the earliest of the following events:

• Transfer of title
• Sale of the property
• Payoff of the first loan
• Refinance of the first loan

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:

• A borrower may only have one active CHFA mortgage loan at a time.
• Any previous CHFA mortgage loans must be paid in full otherwise CHFA will not purchase the new loan.

See Today's Interest Rates.

Important:

• Any CHFA Preferred loan with an income at or below 80% Area Median Income (AMI) will continue to have charter level Private mortgage Insurance (PMI) coverage.
• CHFA Preferred loans with income above 80% AMI will have standard level PMI coverage.

CHFA is currently evaluating income, loan, and purchase price limits. We have not made any changes at this time. If limits change, we will release a subsequent eNews outlining what changes have taken place. Any changes will be for new locks only; existing locks will not be eligible for the new changes. Please familiarize yourself with the CHFA’s Lock policies found in Chapter Four of the Seller’s Guide.

All other program income and purchase price limits may change later in 2023. Such changes will be announced with subsequent eNews.

View the updated CHFA Home Finance Program Income Limits.

* Existing locks may not be edited to take advantage of the new income limits.

Effective for new locks* made on or after January 30, 2023, CHFA Preferred^sm Program will have a statewide limit of $148,120. The income limit is regardless of county or household size and does not include the CHFA Preferred Very Low Income Program (VLIP).

All other program income and purchase price limits may change later in 2023. Such changes will be announced with subsequent eNews.

View the updated CHFA Home Finance Program Income Limits.

* Existing locks may not be edited to take advantage of the new income limits.

• CHFA uses borrower’s qualifying income
• Any other individual who is expected to both live in the home and to be secondarily liable (e.g. co-signors, which CHFA currently does not allow) on the loan.

DACA status applicants are eligible to apply for FHA financing. The following FHA requirements include:

• The property will be the borrower’s principal residence.
• The borrower has a valid Social Security Number (SSN), except for those employed by the World Bank, a foreign embassy, or equivalent employer identified by HUD.
• The borrower is eligible to work in the U.S., as evidenced by the Employment Authorization Document issued by the USCIS; AND
• The borrower satisfies the same requirements, terms, and conditions as those for U.S. Citizens.

All other requirements per FHA’s 4000.1

Single family, one-unit condominium, PUDs, townhomes, manufactured homes. ADUs are acceptable if:

• Zoned for Single Family occupancy
• Cannot be zoned 2-4 units
• Must meet investor guidelines and city/county zoning ordinances
• May not be income-producing and must be for personal use only

• Conventional: 97%/105%
• Manufactured: 95%/105%

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.

Effective for new locks* made on or after January 9, 2023, use the lower of $726,200 or the applicable program loan limit determined by FHA, VA, USDA-RD, Fannie Mae, or Freddie Mac^®, plus financed MI, MIP, VA Funding Fee, USDA-RD Guarantee Fee, or 203(k) rehab funds, as applicable

Here are two examples to help clarify:

The CHFA FirstStep^sm Programs have purchase price limits. Purchase price limits have not changed. Please keep in mind that loan limits may never exceed purchase price limits.

* Existing locks may not be edited to take advantage of the new loan limits.

• Borrowers may own one other property at closing excluding.
• Borrowers may only have one CHFA loan at a time.

• SFR: Maximum deductible is $5,000
• Condo/PUD: The maximum deductible of $5,000 is not applicable for blanket or master policies. Maximum deductibles for blanket or master policies must meet insurer, guarantor, Fannie Mae, or Freddie Mac guidelines, as applicable.

Impound accounts are required.

• Lenders are responsible at minimum for the payment of the first half year taxes
• CHFA will require proof of property tax payments prior to loan purchase.

• MERS totaling $25.00
• No additional fees may be charged to the 1st.
• $175 Form 1004D Appraisal Update and/or Completion Report if applicable.

* Existing locks may not be edited to take advantage of the new loan limits.

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:

• If the Lock is no longer required, please cancel the Lock to avoid a cancellation fee of $100.
• If the Lock is still required and you will meet the expiration deadline, submit required documentation immediately.
• If additional time is needed, you may request a 30-day extension for 35% of the Original Principal Balance of the First Mortgage Loan. CHFA will allow a maximum of two 30-day extensions.

* Existing locks may not be edited to take advantage of the new loan limits.

Please ensure you select the right lock as CHFA Preferred Freddie Mac^® and CHFA Preferred Fannie Mae loans could have different interest rates.

1. CHFA encourages you to obtain full loan approval through the applicable AUS prior to making a Lock. For reference:
   • Desktop Underwriter^® (DU^®) for Fannie Mae loans; loan identified as HFA Preferred
   • Loan Product Advisor^® (LPASM) for Freddie Mac loans; loan identified as HFA Advantage 
   • See rate lock policies and procedures.

Discount points are not allowed

* Existing locks may not be edited to take advantage of the new loan limits.

CF30CHFAP - CONF FIXED 30YR CHFA PREFERRED

• HPML is acceptable
• CHFA will purchase an FHA HPML assuming that:
  • The loan meets all other CHFA criteria; and
  • The loan complies in all respects to Reg Z requirements for HPML’s including underwriting and consumer protection requirements.

• DU App/Eligible, LPA Accept.
• No LPA with manufactured housing. DU only.

• Manual underwriting is not permitted with Manufactured Housing.
• Manual underwriting is not permitted on conventional loans.

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:

• If Conventional financing, CHFA needs: 1008, AUS findings, MI Approval.
• If FHA financing: 1008, Underwriting Transmittal.

• 1st is to be registered in MERS with both ORG IDs: CHFA’s MERS Org ID number is 1008017. DMI (sub-servicer) Org ID is 1001484
• CHFA 2nds are not closed in MERS.
• The Transfer of Servicer (TOS)/Transfer of Beneficiary (TOB) must be completed within the MERS system using a transfer date within five (5) days of CHFA’s loan purchase.

Standard 1^st mortgage documents are closed in the name of MWF and are pulled from LQB.

See for Check List for required docs.

second mortgage deed of trust and title insurance policy: mailing originals no longer required

Effective today, Monday, February 6, 2023, CHFA will no longer require lenders to mail original copies of a CHFA Second Mortgage Deed of Trust or the title insurance policy on the CHFA First Mortgage Loan to CHFA.

Lenders are still required to record the original Second Mortgage Deed of Trust with the appropriate county.

Important Change: Recorded Deed of Trusts should be returned to the lender. Complete the Deed of Trust recording information by entering your company’s mailing information in the upper left corner.

After recording, the lender will upload the original Second Mortgage Deed of Trust through HomeConnection to create an electronic version. Lenders may retain the original at their discretion. Again, do not mail the original Second Mortgage Deed of Trust to CHFA.

Please upload documents to the appropriate line item in HomeConnection:

• CHFA Second Mortgage Deed of Trust = Security Instrument Recorded
• Title Policy for CHFA First Mortgage Loan = Title Policy Insurance

This new policy provides efficiencies and gets us a step closer to a fully electronic transaction.