CHFA Income Limit Increase
The Colorado Housing and Finance Authority (CHFA) announced that as of June 3, 2019, the income limits for most of their loan programs are increasing from $115,600 to $120,100.
Here’s what that means for you.
CHFA has a couple of great down payment assistance programs. One is a conventional loan requiring 3% down, and the other is an FHA loan requiring 3.5% down. In addition to the first loan, CHFA offers a second loan for 4% of the first loan amount, which will cover the down payment, regardless of whether you get a conventional or FHA first mortgage.
The best part is that there is no interest and no monthly payment for the second loan. You only have to pay the original principal amount back (the 4% you borrowed at closing) when you pay off the first mortgage. That will be when you sell the house, refinance the mortgage, or in 30 years when the first mortgage is naturally paid off.
Income Limit Increase
Another important thing to know about CHFA loans is that the income limit (now $120,100) only includes the income that we need to get you approved. For example, if you make $140,000, but $20,000 of that total is from bonuses, commissions, overtime, or some other component of your income that we do not need to count to get an approval, you will still qualify for a CHFA loan and the down payment assistance.
Contact us today to see how easy it is to get approved for a mortgage.