CHFA SmartStep Program

CHFA SmartStep Program

CHFA SmartStep purchase mortgage program is open to home-buyers that have a mid credit score of 620 or higher. This program features CHFA’s lowest mortgage interest rate.  It features FHA, VA, and USDA Rural Development. If you qualify, you may also pair CHFA SmartStep with CHFA’s down payment and closing cost assistance programs.  You may also add a CHFA Statewide Mortgage Credit Certificate (CHFA MCC) for an annual tax credit. Continue reading




CHFA Advantage

CHFA Advantage

Do you have a minimum mid credit score of 680? It could be possible for you to purchase or refinance with a 30-year fixed rate mortgage with only 3 percent down and no mortgage insurance.  On a traditional loan borrowers would need to contribute 20 percent down to avoid paying for costly mortgage insurance (MI). Continue reading




CHFA Preferred Loan Program

​With CHFA Preferred, you could save money up front and throughout the life of your loan with a lower down payment requirement and lower monthly mortgage insurance payments than similar programs in the market.

The CHFA Preferred loan may be paired with CHFA’s down payment and closing cost assistance programs.

 ​​​Benefits

​CHFA Preferred offers the following unique benefits:perferred photo

  • Only 3 percent down payment requirement (similar conventional programs require 5 percent)
  • An optional CHFA Down Payment Assistance Grant (CHFA DPA Grant) to help cover down payment, closing costs, and/or prepaids
  • Reduced-cost mortgage insurance
  • The possibility to cancel your monthly mortgage insurance payments once you reach 80 percent loan-to-value (competing FHA mortgage programs do not allow the same flexibility)
  • Eligible homebuyers may also be able to increase their savings with a CHFA Mortgage Credit Certificate (CHFA MCC​).

CHFA Preferred Qualifications

​Applicants must meet the following minimum criteria:​

  • Have a mid credit score of 620 or higher
  • Meet income limits​​​
  • Complete a CHFA-approved homebuyer education class prior to loan closing
  • Contribute a minimum of $1,000 toward the transaction

Looking to the Future

Want help or advice to start moving forward into a new home, we would love to help at Colorado Mortgage Group. Call today at (303) 444-5251 or email us at Info@cmglending.com.




CHFA Down Payment Assistant Programs

What is CHFA?

CHFA’s mission is to strengthen affordable housing and economic development across the state. They offer many financial resources to strengthen homeownership, affordable rental housing, and businesses. They also offer education classes and technical assistance to help borrowers succeed.

CHFA has invested more than $10 billion in Colorado’s economy. Their resources have helped:

  • 84,472 Colorado homebuyers achieve homeownership;
  • 97,761 households attend homebuyer education classes held statewide;
  • 58,628 affordable rental housing units be developed or preserved; and
  • 3,670 business access capital to support 49,570 jobs.

Home Finance Programs:

borrower qualifications vary by program; however there are certain ones that apply in all or most instances:

  • No first time homebuyer requirements on most loan programs
  • CHFA-sponsored homebuyer education required with purchase programs and CHFA Mortgage Credit Certificates (CHFA MCCs)
  • $1,000 minimum borrower contribution required (may be a gift) on most loan programs

You will find below a brief overview of CHFA programs, along with key benefits of each to help you determine which might be best for you.

 

home finance program comparison chart

Take the next step towards your future with confidence by financing your home with Colorado Housing and Finance Authority (CHFA). Need Help feel free to call us with any question at (303)-444-5251 or email at info@cmglending.com.
couple colorado photo



Down Payment Assistance Grant-CHFA

CHFA Grant Program

The number one hurtle first time home buyers constantly struggle with is the traditional down payment needed to start your investment.  If having a down payment has been a source of frustration in the past, you are not alone.  CHFA has a down payment assistant grant created to help Colorado residents become home-owners.  CHFA’s new grant is available to either first-time or non-first-time homebuyers under most of its 30-year, fixed rate, first mortgage loan programs. Borrowers who meet income requirements, have a mid-credit score of 620 or higher, contribute $1,000 toward the transaction, and complete a CHFA homebuyer education class (online or in-person) prior to loan closing may be eligible. 

CHFA has been offering down payment assistance in various forms since 1991, and this is the first time in more than 10 years CHFA has offered a grant as part of its loan programs for homebuyers. The CHFA grant program may be used toward the down payment, closing costs and/or other fees. ​ Below is the details to get started moving forward today.

How much Assistance can I get?

You can get a grant for up to 3 percent of your first mortgage loan to help cover some of your down payment and/or closing costs.  That would mean up to a $5,100 for a $170,000 for your first mortgage loan.  Another benefit of this program is you never have to pay it back.  With the CHFA DPA grant, you can have the freedom of owning your own house and not stress about ever paying it back.  

 How can this Grant be used? mountain home colorado photo

  • Save money up-front
    Use the CHFA DPA Grant to help with your down payment, closing costs, and/or prepaids.
  • Keep your savings
    Use the CHFA DPA Grant and keep more of your money in savings.​
  • ​Improve your new home
    Use the CHFA DPA Grant to leave more of your money available to make your home your own​.​

How To Qualify:

  • Your total household income and the purchase price must be within the limits. Income Limits can be found at: http://www.chfainfo.com/participating-lenders/single-family/forms/CHFA_Income_Limits.pdf
  • You must complete a CHFA homebuyer education class (online or in-person) prior to loan closing
  • You must contribute a minimum of $1,000 toward the purchase of a home
  • You must have a mid-credit score of 620 or higher

Looking to the Future

Want help or advice to start moving forward into a new home, we would love to help at Colorado Mortgage Group. Call today at (303) 444-5251 or email us at Info@cmglending.com.




New FHA County Loan Limits for 2016

Loan Limits in the State of Colorado

What is a Loan limit? Loan limits have a definition very closely related to their name. A loan limit is the maximum allowable loan size for a mortgage. Loans for amounts above loan limits cannot be approved. Mortgage loan limits can vary by product and by ZIP code. An example would be the particular loan limits set for FHA Loans that differ from Fannie Mae or Freddie Mac.  A VA which is managed by the Department of Veteran Affairs also has a different set of specific limits.  For 2016, the limit for all counties is $417,000 for single-unit homes.  This is the set default mortgage loan limit nationwide.

The Federal Housing Administration released its maximum mortgage limits for 2016 on Wednesday December 9th 2015.  Limits will increase in 188 counties due to the changes in home prices, and no counties will have decreasing loan limits.

Below are are the Colorado limits for 2016 and the previous years limits:

  • Adams County, Colorado 2016 Loan Limit: $458,850 (2015: $424,350)
  • Arapahoe County, Colorado 2016 Loan Limit: $458,850 (2015: $424,350)
  • Boulder County, Colorado 2016 Loan Limit: $474,950 (2015: $456,550)
  • Broomfield County, Colorado 2016 Loan Limit: $458,850 (2015: $424,350)
  • Clear Creek County, Colorado 2016 Loan Limit: $458,850 (2015: $424,350)
  • Denver County, Colorado 2016 Loan Limit: $458,850 (2015: $424,350)
  • Douglas County, Colorado 2016 Loan Limit: $458,850 (2015: $424,350)
  • Elbert County, Colorado 2016 Loan Limit: $458,850 (2015: $424,350)
  • Gilpin County, Colorado 2016 Loan Limit: $458,850 (2015: $424,350)
  • Jefferson County, Colorado 2016 Loan Limit: $458,850 (2015: $424,350)
  • Park County, Colorado 2016 Loan Limit: $458,850 (2015: $424,350)

What Are My Options As A Borrower?

Want help choosing a loan program listed below are the general details for conventional, FHA, and VA programs.

Conventional

  • No Overlays
  • PIW’s accepted
  • 97% LTV – Fixed
  • 90% LTV – 5-7 year ARM’s
  • 620 Min FICO
  • Fannie Mae & Freddie Mac
  • LPMI Available
  • DU Refi Plus and Open Access

FHA

  • Make Sense Underwriting
  • FICO’s down to 580
  • Streamlines to 580 (mortgage only credit)
  • Extra .5% for purchase above 680
  • Extra .5% for streamlines

VA

  • Make Sense Underwriting
  • 100% Cash Out
  • FICO’s down to 580
  • Streamlines to 580
  • Extra .5% for purchases above 680
  • Extra .5% for streamlines



Freddie Mac Home Possible Advantage Mortgages

Program Overview:

Are you currently looking for a new house, or have you been frustrated with the process in the past? Freddie Mac Home Possible advantage mortgages offer outstanding flexibility and options to help meet your needs. With Home Possible, you’ll capitalize on opportunities to meet the home financing needs of low- and moderate-income borrowers looking for low down payments and flexible sources of funds. Freddie Mac Home Possible AdvantageSM offers more flexibility for maximum financing. This offering adopts the responsible and affordable flexibility of Home Possible, but with additional requirements. Below are some of the key features of the Home Possible Advantage Mortgage.

Feature Home Possible Home Possible Advantage
Property Types
  • 1- to 4-unit primary residences
  • Condos
  • PUD
  • Manufactured homes (with restrictions)
  • 1-unit primary residences
  • Condos
  • PUDs
Eligible Mortgage Products
  • Fixed-rate mortgages.
  • 7/1 and 10/1 ARMs if secured by a 1- or 2-unit primary residence.
  • 5/1 ARMs if secured by a 1- or 2-unit primary residence other than a manufactured home.
  • Construction Conversion and Renovation Mortgages.
  • Mortgages with an RHS Leveraged Second.
  • Fixed-rate mortgages.
  • Construction Conversion and Renovation Mortgages.
Maximum LTV/TLTV Ratios
  • For Home Possible: LTV/TLTV/HTLTV ratio of 95 percent.
  • For Home Possible Advantage: 97 percent LTV/ 105 percent TLTV.
Eligibility/Underwriting A Home Possible mortgage may be submitted to Loan Prospector® or may be a manually underwritten mortgage. See Guide Section A34.8 for credit underwriting requirements.
Requirements for Minimum Borrower Contribution and Sources of funds See Guide Section A34.10 for requirements on minimum contributions from borrower personal funds, reserves and permitted sources of funds.
Homebuyer Education See Guide Section 34.12 for homeownership education and landlord education requirements related to:

  • Borrower(s) who are all first-time homebuyers.
  • Restrictions on parties that may provide the homeownership education.
  • Homeownership education documentation  that must be retained in the mortgage file.
  • Acceptable types of homeownership education, including Freddie Mac’s CreditSmart®
  • Borrower disclosure requirements.
  • Landlord education (2- to 4-unit primary residences) requirements for purchase transactions.
Delivery Fees See Guide Exhibit 19 for:

  • Special postsettlement delivery fees are applicable to Home Possible mortgages and Home Possible Advantage mortgages.
  • Delivery fee exclusions.
Special Delivery Requirements See Guide Section 17.18(b) for special delivery instructions for Home Possible mortgages.
Single-Family Seller/Servicer Guide Refer to Guide Chapter A34.

colorado house photo

Key Features and Flexibility

  •  Fixed-rate mortgages with a term of up to 30 years.
  •  Eligible properties: one-unit properties, condominiums, and planned united developments. (Manufactured homes are ineligible.)
  •  All borrowers must occupy the property as their primary residence.
  •  Maximum loan-to-value (LTV) is 97% and maximum total loan-to-value (TLTV) is 105%.
  •  Reduced mortgage insurance coverage (18%).
  •  Temporary Subsidy Buydown plans lower initial monthly payments.
  •  No reserves required.
  •  More eligible sources of funds for down payment and closing costs.
  •  Eligible annual income up to 100% of Area Median Income or higher in select counties and no income limit in underserved areas.
  • May be submitted through Loan Prospector® or manually underwritten

Benefits

  • No minimum borrower contribution from borrower personal funds.
  • Gift from related persons and other sources of funds permitted for down payment and closing costs.
  • Lower monthly payments from reduced mortgage insurance coverage levels.
  • Lower monthly payments means less income needed to qualify.
  • No minimum LTV limit.
  • No reserves required, lowering cash needed to close.
  • Flexible closing cost funding options.

Home Possible Advantage or FHA?

Comparison of Home Possible Advantage with monthly PMI vs. FHA using $150,000 sales price.

30-year fixed rate mortgage scenario Home Possible Advantage
18% Monthly MI Coverage
4.375% Note Rate**, 97% LTV
FICO Ranges 680-719 / 720-759
FHA No FICO Cuts 3.750% Note Rate* 96.5% LTV
Base Loan Amount $145,500 $144,750
Upfront MIP Rate (%) 0 1.75%
Upfront MIP Cost ($) 0 $2,533
Total Loan Amount $145,500 $147,283
Down Payment $4,500 $5,250
Monthly MI Rate (%) .80%/ .60% 0.85%
Monthly MI ($) $97/$73 $102
Principal/ Interest $726 $682
Total Monthly Payment $823/$799 $784

 

The Freddie Mac Home Possible advantage mortgage could be a great option. Call today to get more information and started on the loan process today!




Doctor Loan

Loan Overview:

Has heavy loan dept been a barrier to purchasing a home in the past? You aren’t alone. Student loan dept is cited as being one of the most challenging struggles to people from the ages of 25-34 entering into a house of their own. For those coming out of medical school Colorado Mortgage Group is offering a loan program to help.  This mortgage program has been created to help meet the needs of doctors just getting started on their career. Physician loans make qualifying easier, lower down-payments, and flexible insurance options.  One borrower must have a medical license. Eligible borrowers with student loan debt that is in deferment for 12 months beyond the Note Date are not required to include the deferred debt in the debt-to-income (DTI) ratio calculation.

Loan Amounts

Maximum: $850,000

Minimum: $20,000

Eligible Borrowers

At least one borrowers must hold one of the following valid license type and have student loans currently deferred for 12 months or more:

  • Medical Doctor (MD)Doctor photo
  • Medical Resident (Educational License)
  • Doctor of Dental Science (DDS)
  • Doctor of Dental Medicine or Surgeon (DMD)
  • Doctor of Optometry (OD)
  • Doctor of Ophthalmology (MD)
  • Doctor of Pediatric Medicine (DPM)
  • Doctor of Osteopathy (DO)

Ineligible Borrowers

  • Non-residential aliens
  • Non-permanent resident aliens
  • All trusts
  • Land trusts, except for Illinois Land Trust
  • Non-occupant co-borrowers
  • Limited Partnerships, general partners or corporations
  • Non-arms-length transactions

Eligible Property Types

  • 1-unit properties
  • Fannie Mae warrantable condominiums
  • Planned unit developments (PUDs)
  • Modular homes

To qualify you must have a minimum credit score of  700.  Colorado Mortgage Group is currently offering 5/1 adjustable rate at a term of 30 years and a 7/1 adjustable rate at a term of 30 years.  To see if you qualify or for additional assistance please call us at (303)-444-5251 or email at info@cmglending.com.




My Community Mortgage Program by Fannie Mae

What is A My Community Mortgage?

Has a down payment been a stumbling block to advancing your goals of purchasing a home, Fannie Mae may have the loan program for you. The My Community program was created by Fannie Mae with the intent to provide low rates, minimal risk-based price adjustments, and reduced mortgage insurance costs to home buyer who meet certain requirements.   Homebuyers can purchase a house under Fannie Mae’s My Community Mortgage product with a 3% down payment if at least one co-borrower is a first-time buyer.

Benefits:

Low Rates Risk Based Price Adjustments

The program has a no loan-level-price adjustments.  These on a conventional loan could lead to the borrower paying more due to the higher risk associated for the lender, however this is not the case with the My Community Mortgage program. A few LLPAs to consider are the following:

  • FICO score, the good news is whether you have a 620 or 800 score, those who get approved get the same interest rate pricing.
  • Property type- Fannie Mae will increase the cost of loan if the property is labeled as higher risk. Properties that are commonly high risk are condominiums, duplexes, triplexes, or fourplexes.
  • Down payment, on a conventional loan Fannie Maw will adjust pricing based on the size of your down payment. For example if you have the ability to pay a larger down payment then the outcome would result in better pricing.  With the My Community Mortgage you have access to the same rate regardless of your down payment.
  • Subordinate Financing or Second Mortgages, this program does not have any additional charges is there’s a second mortgage.

Affordable Mortgage Insurance 

A positive attribute of this loan program is that is has reduced mortgage insurance costs.  On a traditional loan the insurance cost is determined by many factors, “coverage” requirements is one of those factors.  With a My Community Mortgage, the coverage requirement from the lender is noticeably less, making way for a cheaper mortgage insurance costs. Listed below is a table comparing coverage for a traditional loan vs a My Community Mortgage.

Down Payment 15-19.99% down 10%-14.99% down 5%-9.99% down Less than 5% down
PMI Coverage Amount for a regular Conventional Loan 12% PMI Coverage 25% PMI Coverage 30% PMI Coverage 35% PMI Coverage
PMI Coverage Amount for a My Community Mortgage 6% PMI Coverage 12% PMI Coverage 16% PMI Coverage 18% PMI Coverage

Reduced Down Payments 

One of the biggest draws of this program is the down payment requirements.  This programs allows Down Payment Assistance to assist in a down payment that can provide as little as zero down on a new property.  Now that conventional 3% down loans are a reality, buyers have a real alternative to FHA. While the FHA loan has its benefits, it comes with high upfront fees and permanent mortgage insurance.  Three percent down loans with the following characteristics will be considered for approval:

  • The mortgage is a fixed rate loan.
  • The property is one-unit single family home, co-op, PUD, or condo.
  • At least one buyer has not owned a home in the last three years.
  • The property will be the owner’s primary residence.
  • The loan amount is at or below $417,000

For those wishing to use a first time homebuyer program, there are several options.  Both FHA and the Fannie Mae My Community Mortgage are some of the best options available.  If you wish to know more information or take action on determining your eligibility, we would love to help.  Please feel free to email or contact us at (303) 444-5251.

 




FHA Condominium Project Approval

FHA Guideline Update:

Thought about purchasing a condominium in the past? FHA has just announced that is will be changing its rules to make it easier for buyers to get federally insured financing.  This is good news because traditionally condos have been a great way for first time home owners to step into a house.  Under new FHA guidelines second homes are no longer considered “investment property” for determining the owner-occupancy ratio of a condominium project.  Looking back before the change if someone had owned a unit in a condo project, and used the unit as a second home, that unit doesn’t count as part of the project’s 50-percent owner-occupancy threshold, which is required by FHA.  This meant that if someone wanted to own a unit in that project and fewer than half the units where owner occupied the borrower couldn’t get FHA-backed financing.

Today the FHA has widened its guidelines.  Below are the new guidelines provided by FHA:

The procedure for calculating the required owner-occupancy percentage is modified to allow units that are not investor-owned to be considered owner occupied for the purpose of Condominium Project approval. For the purpose of Condominium Project approval, a unit is considered to be investor-owned if the unit is:

• Tenant Occupied;

• Vacant and listed for rent;

• Existing (previously occupied), vacant and listed for sale; or

• Under contract to a purchaser that does not intend to occupy the unit as a Principal Residence or Secondary Residence. The term Principal Residence and Secondary Residence have the same meaning as defined in Handbook 4000.1.

For purposes of calculating the owner-occupancy percentage:

• on multi-phased projects, the owner-occupancy percentage is calculated on the total number of units in the first declared phase and cumulatively on subsequent phases; or

• for single-phase condominium project approval requests, all units are used in the denominator when calculating the required owneroccupancy percentage.

Streamline Condominium Re-certification:

FHA-approved condominium projects require re-certification after two years to ensure that the project is still in compliance with FHA’s eligibility requirements and that no conditions currently exist which would present an unacceptable risk to FHA.  For existing condominium projects seeking re-certification, FHA will now only require applicants to submit documents reflecting any substantive changes since the project’s prior approval.

 

For any questions or to take steps to get into a new condo. please call (303) 444-5251 or email us at info@cmglending.com.