100% Financed Mortgages – CHFA Helping To Stabilize the Local Real Estate Marketplace



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The Connecticut Housing Finance Authority (CHFA) has a program in place designed to assist homeowners or potential homeowners with the purchase of distressed properties.  The program, called the Homeowners Equity Recovery Opportunity Program (or HERO) provides for several concessions that would allow the buyer to purchase a short sale or bank-owned property with reasonable ease.

Very Little Money Down

Like most FHA loans, buyers would only have to pay 3.5% down on a CHFA HERO financed purchase – an amount that is very doable for most prospective buyers these days, especially in light of the current economic downturn.

Down Payment Assistance

An added benefit of the program is that buyers that qualify for down payment assistance may be able to finance that portion of the purchase as well, effectively making the home purchase 100% financed.

More Distressed Properties Sold Equals Marketplace Stabilization

As the CHFA website states, the program is “designed to support neighborhood stabilization by providing first mortgage financing to encourage first-time homebuyers and existing homeowners to purchase and/or purchase and rehabilitate foreclosed or abandoned properties including properties conveyed by deed in lieu of foreclosure or short sale.” Buyers can qualify for this loan only for the potential purchase of distressed properties.

Newly Expanded Rules Makes for Broader Range of Buyers

The HERO program was conventionally available only for first time homebuyers but the rules have since expanded, allowing existing homeowners to also fall under the umbrella of qualified applicants of this financing program.  This opens up the realm of possibility to a much wider range of homebuyers.

Own and Rent at the Same Time and Still Qualify for HERO

If you are looking for either a short sale or a bank-owned property, and you want to be an owner-occupant and move into that home,  CHFA will allow you to keep your existing home and while using up to 85% of your net rental income from your existing home to qualify on your next loan to purchase the second home and move into it.  In other words, you can own two properties at the same time, using your existing/current home to qualify your second purchase.  By tapping into the rental income potential of the first property, you will have then strengthened your investment portfolio significantly.

Lower Than Average Interest Rates

Though as a nation we are already used to seeing the all-time low interest rates that have made international headlines across the board, the benefit of the CHFA HERO loan program is that rates are even lower than many other markets.  Since the rates do fluctuate, the most accurate rate quote will come from a loan officer, but the fact is that when you combine all other factors of the HERO program along with the low, low rates – the opportunity is an amazing one!
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To learn more about CHFA, check out their website here or if you want to read  specifically about the HERO financing program visit this link.