CFHA Loan (insurance, interest rate, credit score, rate)

[KTFLYNN]

My husband and I are starting to look into FHA loans, I am currently a homemaker my husband makes 70k a year and has excellent credit (730+) All the home we are looking at our the FHA the limit for fairfield county as is his salary. My question is we were planning on using a large cash down payment (between 30-50%) would this make us not eligible?

[willow wind]

What kind of loan are you talking about ? Connecticut Housing Finance Authority loans and FHA loans are not quite the same thing.

CHFA loans have to be backed by either HUD/FHA or the VA. However, CHFA has its own guidelines and limits and is underwritten to those guildelines. Your husband's income is well under the maximum for Fairfield county. I've included a link so you can see what the maximum purchase amount would be for the county.

Look first at income, then scroll down to see towns limits by county

http://www.chfa.org/content/CHFA%20D...10-15-2012.pdf

Your greater than typical down payment has no bearing on the loan. You simply cannot buy a home greater than the maximum sale price allotted. Example, say the price limit is $ 500,00. You must buy a home $500,000 or under no matter how much the down payment. Go to the CHFA website for more info, take one of their homeowner classes and /or talk to a lender who does these loans.

CHFA is a great program if you can use it as the current rate is just 2.75%. Straight FHA, not CHFA/FHA is something different.

These are regular HUD/FHA home price limits & income limits for CT

FHA Loan Limits for CONNECTICUT

https://sites.google.com/site/connec...-income-limits

Once again, speak to a lender familiar with the loans.

[jwiley]

Why if you are putting 30-50% down would you go with an FHA loan? Why not just do a straight conventional loan?

[Modification Specialist]

Originally Posted by jwiley

Why if you are putting 30-50% down would you go with an FHA loan? Why not just do a straight conventional loan?

I concur - why would you want an FHA loan with mandatory mortgage insurance for five years.

With a high credit score and a substantial amount for a down payment. You should consider a local credit union for a mortgage.

Credit unions are owned by members not investors. Credit unions have competitive interest rates and lower closing costs....


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