The Connecticut Housing & Finance Authority (CHFA) is modifying the HERO Program to promote neighborhood stabilization by providing mortgages to eligible first time and existing home buyers who buy bank owned, abandoned or short sale:
- Condos in FHA approved complexes,
- Detached single family homes, and
- Detached two, three or four family properties.
Although CHFA is normally a first time home buyer program, under HERO, existing home owners can buy an eligible property provided that upon closing the buyers make the eligible property their primary residence. Existing home buyers do not have to sell their existing homes, they can rent them!
Another big difference between the HERO Program and other CHFA mortgage programs is that home buyer income limits do not apply.
The Federal Recapture Tax does not apply to properties purchased under the HERO Program. However, CHFA will place a five-year deed restriction on properties purchased under this program. If a home owner who uses the HERO Program wants to sell a HERO property within five years, CHFA approval of the sale will be required.
HERO Loans will be FHA insured and subject to FHA loan to value, underwriting guidelines and mortgage limits. The HERO Program can be combined with a 203k FHA Rehabilitation or Streamline Rehabilitation Loan for properties that need work.
The best part of the HERO Program is the interest rate – the regular CHFA interest rates! The current CHFA interest rate is 3.625! And, down payment and closing cost assistance is available through CHFA’s DAP loan.
If you are interested in purchasing a bank owned, abandoned or short sale property in Wethersfield, Rocky Hill, Hartford or any of the surrounding towns, or would like more information about the HERO Program, please call me at 860-305-8044 or send me an email at firstname.lastname@example.org.