quick facts: chfa firststep^sm program

Confused about the CHFA FirstStep^sm programs? Here’s some quick facts to help differentiate it from other CHFA home loan programs.

First-time Homebuyers

FirstStep borrowers are required to be first-time homebuyers, unless purchasing in a targeted area. A first-time homebuyer is a borrower who has not had any ownership interest in a primary residence in the last three years or is a Qualified Veteran (including Honorably Discharged and Inactive Veteran).

Income to Determine Eligibility

Lenders must use the CHFA Gross Annual Income calculation to determine program eligibility. Gross Annual Income is equal to the current total gross annual income for:

• All borrowers and co-borrowers; and
• Any occupying non-borrowing spouse or civil union partner.

All sources of income for the above-stated individuals, from any source derived, and before taxes or withholdings, must be included, including overtime, tips, bonuses, commissions, non-taxable income, child support, alimony/maintenance, self-employed, pensions, etc.

Gross annual income does not include income earned by children, dependents, or other individuals living in the home not considered one of the above.

Note: FirstStep income eligibility and purchase price limits vary by county, household size, and area designation. Refer to the Income and Purchase Price Chart.

Requires a Compliance Review

CHFA requires a Program Compliance Review prior to the loan closing for all CHFA FirstStep loans. Lenders must receive Program Compliance Review approval prior to proceeding with closing to ensure CHFA program eligibility of the loan and obtain the necessary closing documents. These closing documents only become available upon CHFA Program Compliance Review approval. A checklist is available for your reference.

Failure to receive approval may result in your borrower’s inability to qualify for the program and ultimately, CHFA’s inability to purchase the loan.

CHFA Forms