CHFA offers special financing options for veterans or Military Service members loans including an additional 0.125% off already below-market interest rates and down payment assistance. This program is open to unmarried, surviving spouses or civil union partners of a veteran who died as a result of Military Service or service-connected disabilities.

Eligibility Requirements

• Buyer must be a first-time homebuyer or have not owned a home in the past three years
• New home must become buyer's primary residence
• Sales price must be within the CHFA Sales Price Limits, and gross income must be within the CHFA Income Limits. The CHFA Resource Map shows program eligibility limits. https://www.chfa.org/homebuyers/chfa-resource-map-target-areas/

Eligible Properties

• Single family homes, Townhouses, and Planned Unit Developments (PUDs)
• Condominiums that are FHA/VA-approved or Fannie Mae-eligible
• 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

Targeted Area Exceptions

• Buyers who are not first-time homeowners may still be eligible for a CHFA loan if purchase in an area of the state targeted for revitalization (Targeted Area). Income limits will be waived for purchases in Targeted Areas if buyers are not applying for Downpayment Assistance or using HFA Preferred, HFA Advantage, or CHFA CALP programs.

Additional Considerations

• Buyer must attend a free Homebuyer Education class prior to closing. 
• Buyer must obtain mortgage insurance if amount financed exceeds 80% of the appraised value or purchase price, whichever is less. Mortgage insurance may not be required with a down payment of 20% or more.
• In rare cases, buyer could be required to pay a Federal Recapture Tax if home is sold within 9 years and other criteria are met.

Downpayment Assistance Program (DAP) Loans

A low-interest supplementary second mortgage of at least $3,000 to cover the down payment and closing costs may be available. Buyer must have the monthly income to pay first and second mortgages. Applicants must make a minimum investment of $1,000 towards the acquisition costs. Interest rate will be the same as first mortgage.

The CHFA Resource Map shows program eligibility limits, interest rates, and other financial data:. https://www.chfa.org/homebuyers/chfa-resource-map-target-areas/