March 5 2018
On Friday CHFA issued Bulletin 137 stating CHFA loans using Down Payment Assistance (DAP) will be limited to funding up to 100% CLTV (previously 105% CLTV). This will go into effect on April 1, 2018.
What does this mean for new borrowers?
On April 1st, borrowers will no longer be able to borrow the down payment and closing costs with the Down Payment Assistance program / DAP (second mortgage). The down payment will only be covered in the Down Payment Assistance program (second mortgage).
Pre-Qualified borrowers who are still shopping and were planning to use CHFA DAP for their Down Payment and Closing Costs will need to discuss alternative options. Give me a call if you need assistance.