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.
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 firstname.lastname@example.org.
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?
- 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.
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.
- 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
- Make Sense Underwriting
- FICO’s down to 580
- Streamlines to 580 (mortgage only credit)
- Extra .5% for purchase above 680
- Extra .5% for streamlines
- Make Sense Underwriting
- 100% Cash Out
- FICO’s down to 580
- Streamlines to 580
- Extra .5% for purchases above 680
- Extra .5% for streamlines
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.
||Home Possible Advantage
- 1- to 4-unit primary residences
- Manufactured homes (with restrictions)
- 1-unit primary residences
|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.
||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.
||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.
||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.
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
- 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 $150,000 sales price.
|30-year fixed rate mortgage scenario
||Home Possible Advantage
18% Monthly MI Coverage
4.375% Note Rate**, 97% LTV
FICO Ranges 680-719 / 720-759
|FHA No FICO Cuts 3.750% Note Rate* 96.5% LTV
|Base Loan Amount
|Upfront MIP Rate (%)
|Upfront MIP Cost ($)
|Total Loan Amount
|Monthly MI Rate (%)
|Monthly MI ($)
|Total Monthly Payment
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!
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.
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)
- 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)
- 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 email@example.com.
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.
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.
||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 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 firstname.lastname@example.org.
What is This Program?
This program has been created to help approved lenders in providing low and moderate income households the possibility to own adequate, modest, safe, and clean houses as their primary residence in eligible rural areas. This program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural home buyers. Sometimes called a “Rural Housing Loan” or a “Section 502” loan, there are a number of exurban and suburban neighborhoods nationwide in which USDA can be used. You may be surprised to know that a large number of Colorado counties have properties that fit the USDA’s requirements, including areas near Aurora, Denver, Boulder, Colorado Springs and Greeley. Has coming up with a down payment been a problem in the past and kept you from purchasing a house fret no more?
Who may be Eligible for this Program.
- Meet Income-Eligibility. Find out at http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do.
- Find out if your dream home is in an eligible area http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do.
- Agree to personally be occupying the residence as your primary residence.
- Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
- Have a legal capacity to incur the loan obligation
- Have not been suspended or debarred from participation in federal programs
- Demonstrate the willingness to meet credit obligations in a timely manner.
- Purchase a property that meets all program criteria
Benefits at a Glance:
- No down payments
- 100% Financing
- Eligibility requirements cater to low to average income borrowers
More Key Information:
- No down payments, once qualified you have the option to pay nothing out of pocket for a down payment.
- Flexible credit guidelines. You are still required to submit your credit report, but the USDA is far more lenient in what is considered to be acceptable.
- No maximum purchase price. NO, there is no limit on the purchase price as long as the lender determines you are able to make the payments.
- 100% Financing. In case “no down payment” hasn’t given it away, the U.S. government will finance 100% percent of your home once you are deemed eligible.
- Many property types included. If your home is new, previously owned, modular, planned unit development, a condo, or a manufactured… it is eligible.
As the dust of Halloween quickly begins to fade, and the remnants of candy wrappers litter the hallways a new season begins to emerge. That’s right the holiday season has officially begun. While ears aren’t ringing with the sounds of cheery music yet, holiday lights have crept up, and Thanksgiving recipe prep has arrived. Reflecting on the year as been fun, and as we move forward thinking about the company we wish to be our hearts and dreams have been stirred. Colorado Mortgage group LLC is committed to the communities we serve. As this is the season of giving, we have decided to serve this year through an annual donation to a local non-profit organization. This year November 2015 we are donating 1% of our profits to Urban Peak.
Founded in 1988, Urban Peak is a Denver non-profit organization that focuses on youth ages 15 through 24 experiencing homelessness or at imminent risk of becoming homeless. Their goal is to help these youth overcome real life challenges and become self-sufficient adults. They believe that best way to accomplish that in Denver, Colorado is by providing five essential services a little or no cost to the youth. Those services are, an overnight shelter, a daytime drop in center, street outreach, education and employment programming, and supportive housing. If you are interested in getting involved there are numerous ways you can help support youth who are experiencing homelessness in our community. Urban Peak is a non-profit 501(c)(3) organization that relies on the support of generous individuals and companies to help youth find a life off of the streets and become self-sufficient adults. Go to http://www.urbanpeak.org/ for more information.
We hope you enjoy the beginning of your holiday season, and get to spend it with the people you love.
From us at;
Colorado Mortgage Group
New Mortgage Rules Aim To Simplify Information But May Slow Down The Process
As of October 3rd, the TILA-RESPA Integrated Disclosure Rule (TRID) will require lenders to provide potential borrowers with more detailed rate and fee information. This process will also give borrowers more time to review documents before closing.
When you think about buying a house, many questions may come to mind. Having the necessary information to make informed educated decisions is an important step in the mortgage loan process. Starting on October 3rd, 2015, new guidelines and regulations will aim to provide more details. Mortgage rates and fee quote documents are a few of those details. What does this new regulation mean looking forward, and for those looking to get started in the journey of purchasing a home?
There are two regulations that are designed to protect borrowers from fee abuses currently:
- The Truth In Lending Act (known as TILA or Regulation Z) established in 1968. This act protects borrowers from unforeseen closing cost abuses. The way in which it does this is by creating standards for the way mortgage fees and terms are calculated and communicated.
- The Real Estate Settlement Procedures Act (known as RESPA or Regulation X) created in 1974. This act aims to protect borrowers from false inflated real estate transaction costs.
As of October 3, 2015, the CFPB (Consumer Financial Protection Bureau) will bring together the two regulations mandated under TILA and RESPA into a simpler form. This is called the TILA-RESPA Integrated Disclosure Rule, or commonly known as TRID.
With these new disclosures, the process might be slower-especially as lenders get used to the new rules.
Looking to the Future:
Here is What Happens Prior to October 3rd:
- Within three days of you applying for a home purchase loan, the lender must send you a Good Faith Estimate and an Initial Truth In Lending disclosure, these will show your quoted rate, sum of fees, terms and costs over the life of the loan.
- Before closing (even if it’s the day of closing, which it often is), the lender will send you a HUD-1, which is a breakdown of all fees for the transaction, and a final Truth In Lending disclosure this will allow you to see if there have been any differences from the beginning.
Today’s process has been deemed too confusing and complicated by the CFPB. The first time a borrower sees a HUD-1 which contains a formal breakdown of all the fees is at the closing table. By that point it may be too late to make changes the borrower may see in their favor. In light of this information under the new TRID rules all new applications after October 3 will receive two disclosures. One will be at the beginning and one will be at the end.
- Within three days of you applying for a home purchase loan, the lender must sent you a Loan Estimate Form, which provides a detailed line-item breakdown of fees, cash needed to close, rate, terms and costs over the life of the loan. The lender must also obtain your intent to proceed before they can move forward.
- At least three days before closing, the lender must send you a Closing Disclosure Form, which looks almost exactly like the Loan Estimate, but also separates which costs are paid by the buyer, seller, and third parties. What this means for the borrow is that you will have more time to make decisions and review the final terms of your agreement.
There will be some growing pains in the near future, as lenders, brokers, and other key players figure out the details of this new regulation. Talk to your lender today and ask what starting the lending process could look like for you.