mortgage

South Windsor FHA Mortgage Loans

FHA stands for the Federal Housing Administration and is a part of HUD, the Department of Housing and Urban Development. The loan is provided by a lender and not the FHA. FHA guarantees the loan in case the loan goes to foreclosure. FHA loans currently allow for up to 96.75% financing.

Highlights of the FHA program:

1. 96.75% financing
2. Lenient credit qualifying
3. Seller can pay closing costs
4. Interest rates at or below conventional rates
5. Very low monthly mortgage insurance when compared to conventional loans

FHA can be either 15- or 30-year fixed rate loans or 1-, 3- or 5-year Adjustable Rate loans. The interest rates currently are lower than many conventional loan programs. There are two basic charges for using the program: (1) an Upfront Mortgage Insurance Premium (UFMIP) and (2) a Monthly Mortgage Insurance (MI) payment.

The UFMIP is on a sliding scale based upon the amount of the down payment and the credit score of the borrower(s). The UFMIP is not an out-of-pocket expense but, rather, it is simply added to the loan amount. The MI payment is 0.55% per year and is included in the monthly mortgage payment. Think of these as costs of using this special program.

FHA has special qualifying criteria that can make these loans easier to get than other conventional products.

For more information about FHA financing in South Windsor, please contact us at (860) 282-6182.

mortgage

South Windsor CHFA Mortgage Loans

CHFA (pronounced “cha-fuh”) stands for the Connecticut Housing Finance Authority. It provides No Money Down financing for low – and moderate – income South Windosr home buyers. CHFA loans utilize an FHA first mortgage, which requires a South Windsor home buyer to put a 3% down payment. To make this a No Money Down loan, there is a second mortgage using a DAP (Downpayment Assistance Program) which pays up to the 3% downpayment and the South Windsor home buyer can also finance part or all of their closing costs.

Highlights of the CHFA program:

1. Up to 100% financing, no money down
2. Lenient credit qualifying
3. Very low interest rates
4. Can finance closing costs
5. Seller can pay closing costs
6. Interest rate and fees are set by the CHFA and do not vary between lenders

The second mortgage rate is the same as the first and is published weekly by CHFA. The rate varies based on fluctuations in the market. The loan is a 30-year fixed rate loan and also carries both an upfront mortgage insurance premium and a monthly mortgage insurance payment. The interest rates on these loans are subsidized by the government so they are lower than conventional rates.

CHFA does have two types of mortgage insurance associated with it and they are: (1) an Upfront Mortgage Insurance Premium (UFMIP) and (2) a Monthly Mortgage Insurance (MI) payment.

The UFMIP is on a sliding scale based upon the amount of the down payment and the credit score of the borrower(s). The UFMIP is not an out-of-pocket expense but, rather, it is simply added to the loan amount. The MI payment is 0.55% per year and is included in the monthly mortgage payment. Think of these as costs of using this special program.

CHFA has special qualifying criteria for South Windsor home buyers that can make these loans easier to get than other conventional products.

For more information about CHFA loans in South Windsor, please contact us at (860) 282-6182.