• Home
  • Military Discounts
    • Military & Veteran Discount List
    • Local Military and Veterans Discounts
    • Apple Military Discount
    • Veteran & Military Cell Phone Discounts
    • Gym and Health Club Discounts
  • Benefits
    • 10 Veterans Benefits You May Not Know About
    • Top Military Spouse Benefits
    • Medal of Honor: Benefits, History and Facts
    • Purple Heart Benefits
    • Veterans Health A to Z
  • Housing & Home Ownership
    • VA Loan Calculator
    • VA Loan Limits by County
    • VA Home Loan Guide
    • 5 Benefits of a VA Loan
    • 2022 BAH Rates
    • BAH Calculator
  • Money & Finance
    • 2022 Military Pay Charts
    • 2022 Defense Budget
    • 2022 Military Pay
    • COLA Watch 2022-2023
    • Military Pay Calculator
    • Military Pay Dates
    • VA Disability Rates
  • Jobs
    • Veteran Friendly Employers
    • Military Spouse Employment Preference
    • Veterans Employment and Training Service (VETS)
    • Security Clearance Jobs After the Military
  • Education
    • Veteran Friendly Colleges
    • Online Colleges with Military Discounts
    • Veteran Friendly Colleges Guide
    • Military Spouse Career Advancement Accounts (MyCAA)
    • Monthly Housing Allowance (MHA) for the GI Bill
    • Forever GI Bill
  • Resources
    • How to Get a Veterans ID Card
    • Veterans ID on Driver’s License or ID Card by State
    • Military ID Cards
    • Military Calendar
    • State Veteran’s Benefits
Zero Down Home Loan Eligibility

Home » CHFA Military Mortgage Option

CHFA Military Mortgage Option


The Connecticut Housing Finance Authority (CHFA) provides military families with special home buyer benefits. These are offered to both those currently serving and veterans from all branches of military service including the Guard and Reserve.

Connecticut Home Loan Programs For VeteransFeatures of CHFA Loans For Veterans And Military Members

CHFA loans aimed at veterans (and those not specifically for vets but where veterans are welcome to apply) include the following features:

  • Below market interest rates
  • Additional interest rate cuts for qualifying disabled veteran applicants
  • Sales price caps
  • Income limits
  • Waivers for both sales and income caps in certain areas
  • Down payment assistance is an option

For these loans there is generally a first-time home buyer requirement but this may be waived if the applicant is purchasing property in a targeted area.

What Is A Targeted Area?

CHFA literature describes homes for sale in targeted areas as follows:

“These are areas of the State that would benefit from increased homeownership” and as such offer a waiver on first-time home buyer requirements that would otherwise be applicable for this type of mortgage. Income limits are also waived unless the applicant is applying for the loan AND also needs down payment assistance.

Down Payment Assistance Loans

Those applying for a military-friendly loan via a participating lender who is part of the CHFA network may “automatically qualify” for a low-interest supplementary loan of at least $3,000 in FY 2020 (the amounts are always subject to change) meant to provide help with down payment expenses. This loan is defined as a “second mortgage” and the borrower is required to prove they can afford both loans BUT do not have savings for a required down payment.

Interest rates on these second mortgages are identical to the rate you are offered on the purchase loan.


The CHFA Military Mortgage Option

This is a CHFA loan advertised as being primarily for first-time home buyers who have qualifying military experience or who are qualifying family members.

This loan program offers an additional interest rate discount (an additional 0.125% off in Fiscal Year 2020 as an example, but always subject to change) for veterans, currently serving military members, plus unmarried, surviving spouses or civil union partners of a veteran who died as a result of Military Service (or as a result of service-connected disabilities).

The requirements for this loan include being a first-time home buyer, OR not having owned property in the last three years. For this type of loan, only primary residences can be considered. No investment properties, vacation homes, and no properties that cannot be classified as real estate such as RVs and houseboats.

Eligible properties for this type of veteran-friendly mortgage include:

  • Single family homes
  • Townhouses
  • Planned Unit Developments
  • Condominiums (must be FHA/VA approved or eligible for Fannie Mae)
  • Two-to-four unit homes that have been used as residences for the past five years
  • Newly constructed two-family homes that meet FHA energy efficiency standards

If you want to purchase one of the above properties but do not plan to be an owner/occupier you will not qualify for these types of mortgages. Additional restrictions or property use may apply–some mortgage programs do not allow the property secured with the loan to be used as an Air b-n-b, bed-and-breakfast, etc.

The Targeted Area Exception

As mentioned above, you do not have to be a first-time home buyer if you purchase a property within a targeted area. Official sources state, “CHFA will waive the income limit for eligible applicants purchasing in Targeted Areas who are not applying for a Downpayment Assistance Program loan.”

Other Requirements

All using this program must attend a free Homebuyer counseling course before the closing date of the mortgage. Mortgage insurance may be required, unless you are making a 20% down payment. CHFA does not process loan applications or lend money; you will need to apply via one of the networked lenders participating in the program. You can find a list of these lenders at the CHFA official site.



About The AuthorJoe Wallace is a 13-year veteran of the United States Air Force and a former reporter for Air Force Television News


Related Articles
State-Run Veteran Friendly Home Loan Programs State Veteran’s Benefits
Best VA Loan Lenders Best States with Veteran Benefits
VA Home Loan Options Overview Connecticut Veteran’s Benefits

Military + Veteran Discounts

Want 30+ Mil/Vet discounts to use today? Enter your email for updates and we'll send it!
Name(Required)

VA Home Loans

Popular Articles

2022 VA Disability Rates

2022 Military Pay

Military Pay Calculator

VA Loan Calculator

2022 BAH Rates

Search Veteran.com

VA Home Loan Eligibility

VUHL Zero Down Home Loan
Military Benefits Logo

Company

  • About
  • Contact Us
  • Add a Discount
  • Privacy Policy
  • Terms of Use
  • Disclosure
  • Unsubscribe

Quick Links

  • Home
  • Military Discounts
  • Benefits
  • Housing & Ownership
  • Money & Finance
  • Employment
  • Education
  • Resources

Connect With Us

  • facebook
  • instagram
  • pinterest
  • twitter
  • youtube
Copyright © 2022 Three Creeks Media, LLC

Veteran.com is a property of Three Creeks Media. Neither Veteran.com nor Three Creeks Media are associated with or endorsed by the U.S. Departments of Defense or Veterans Affairs. The content on Veteran.com is produced by Three Creeks Media, its partners, affiliates and contractors, any opinions or statements on Veteran.com should not be attributed to the Dept. of Veterans Affairs , the Dept. of Defense or any governmental entity. If you have questions about Veteran programs offered through or by the Dept. of Veterans Affairs, please visit their website at va.gov. The content offered on Veteran.com is for general informational purposes only and may not be relevant to any consumer’s specific situation, this content should not be construed as legal or financial advice. If you have questions of a specific nature consider consulting a financial professional, accountant or attorney to discuss. References to third-party products, rates and offers may change without notice.

Advertising Notice: Veteran.com and Three Creeks Media, its parent and affiliate companies, may receive compensation through advertising placements on Veteran.com; For any rankings or lists on this site, Veteran.com may receive compensation from the companies being ranked and this compensation may affect how, where and in what order products and companies appear in the rankings and lists. If a ranking or list has a company noted to be a “partner” the indicated company is a corporate affiliate of Veteran.com. No tables, rankings or lists are fully comprehensive and do not include all companies or available products.

Editorial Disclosure: Editorial content on Veteran.com may include opinions. Any opinions are those of the author alone, and not those of an advertiser to the site nor of Veteran.com.