CHFA Not For Just First Time Homebuyers.

Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149









Last week I posted a blog updating some of the changes to Connecticut Housing Finance Authority (CHFA) since my previous post. This post covered most of the requirements for CHFA Loans as well as additional programs that they have. The danger of writing a post like this is that it covers so much, that it is very easy to miss some very important points that most do not know, or have a misconception about. The reason why I included so much in that blog is because I wanted a blog that a Borrower could go to, and read all about CHFA in one place without having to search around and jump from one screen to another.

The purpose of this blog and possibly others to follow, is to just pull out one of the features of CHFA that is commonly misunderstood, or not know, which could have easily been overlooked when reading the more inclusive blog.

One of the major misunderstandings about CHFA is that it is JUST for First Time Homebuyers. A First Time Homebuyer is defined as someone who has not owned a property in the last three years. While CHFA’s major purpose and focus is to provide mortgage loans for First Time Homebuyers, there is a situation in which it can also apply to non first time buyers.

CHFA has designated 5 towns (Bridgeport, Hartford, New Haven, New London, and Waterbury) as Targeted Areas, and portions of 13 other towns (Ansonia, Danbury, Enfield, Groton, Meriden, Middletown, New Britain, Norwalk, Norwich, Rocky Hill, Stamford, Torrington, Windham) as Targeted Areas. If a Buyer purchases a property within any of these areas, and meets CHFA’s Income and Sales Limits, they can apply for a CHFA Mortgage even if they are not a First Time Homebuyer. However, it DOES have to be the only property that they presently own, they cannot own a property that they plan on keeping, and then purchase another property with a CHFA Loan. Also since CHFA further reduces their already below market interest rate by .25% for properties within the Target Area, they qualify for the reduced rate as well.

This is not commonly known by many Loan Officers in Connecticut, and as a result many non first time buyers who have qualified for CHFA Mortgages in the past, have not taken advantage this. Hopefully those who are reading this blog will not make that same mistake.

I plan on following this blog with another one to clarify anther misstated perception about CHFA Loans, so keep an eye out for it.



Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who is licensed in #CT, #RI, #MA, #NH, & a #FL Licensed Lender who can assist you with all your #FHA, #Conventional, #VA, #USDA, and #State Bonded Progam #mortgage needs in #CT, #RI, #MA, #NH, & #FL. George resides in Middlesex County which includes #Middletown, #Old Saybrook, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or

Comments (12)

Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI

Well, that clears up any questions :)   Thanks!

Mar 02, 2009 12:04 PM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Sally all you have to do now is to move from Hawaii to Connecticut so that you can have one of your buyers do one of these :) :)

Mar 02, 2009 12:40 PM
Jen Bowman
Keller Williams on the Water - Holmes Beach, FL
Realtor - Anna Maria Island & Bradenton FL

George, you're doing a great job of breaking this info down.  I think it's easier to comprehend in smaller doses. 

Mar 02, 2009 12:49 PM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Jen, I agree.  Thank you

Mar 02, 2009 12:58 PM
Dave Jones
Dave Jones Realty, llc. - Prospect, CT
Broker/Owner - e-PRO Dave Jones Realty llc Prospec

Wow great info.  I showed a home in waterbury today and sent my people a link to your blog post!

Mar 02, 2009 03:03 PM
Maggie Dokic | Miami, FL | 888.883.8509 X101
eXp Realty LLC - Miami, FL
GREEN, CDPE, SFR, Pinecrest | Palmetto Bay |

George, you are the go-to source for mortgage info in Connecticut.  So much of the process is so daunting that it helps consumers tremendously to have someone such as you guiding them.  Kudos!

Mar 02, 2009 04:42 PM
Neal Bloom
Brokered by eXp Realty LLC - Weston, FL
Realtor CRS-Weston FL Real Estate

I could have used this for a first time buyer who was looking to purchase one of my listings with a buyers agent....unfortunately they couldn't qualify due to FHA limits with wood rot in an HOA community that wouldn't remedy the situation.

Mar 02, 2009 11:00 PM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Dave THANK YOU and I will let you know if they contact me.

Maggie thank you for the kind words.  I have one more issue that I want to make sure is understood about CHFA Loans that I want to clarify, and hopefully I will be able to do that this week.

Neal FHA has a 203K Streamline Loan that allows a Buyer to borrow up to $35,000 or 10% of the Appraised Value after improvements.  It is not the nightmare loan like the full 203K, it is easy to do and it can be used for houses and Condo's.  Your favorite Loan Officer down there should be able to do it for you or send you to someone that can.  I can't do loans in Florida, but I would be happy to talk to you on the phone and give you more details on it.

Mar 03, 2009 02:20 AM
Esko Kiuru
Bethesda, MD


Some of these programs can really get complex with all the fine details, so it's good that you clarify everything for the reader.

Mar 03, 2009 05:34 AM
Lenn Harley
Lenn Harley,, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Very good information George.  You're doing Yoeman's work.

I have received many phone calls from folks touring my web sites and seeing information about certain financing opportunities in MD or VA. 

They have been told by other agents or lenders that there is NO 100% financing available anywhere.

No so.  It merely means that they don't do or know of the opportunities. 

Needless to say, I spend a lot of time looking for money for folks.  It's getting harder and harder, but it's worth the time.

Mar 03, 2009 08:34 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Esko, yes and they are getting mor complex with recent changes, but that is why we are here to explain it for them.

Lenn you do a great job form what of have seen on your blogs of doing that for your clients.  The money is there, maybe not as much as before, but it is there if you know where to look.

Mar 03, 2009 09:04 AM
Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI

uhh....kind of cold for my warm blooded persona lol!

Mar 03, 2009 10:46 AM