NMLS: 2576 | CT LICENSE: 1101 | MA LICENSE: LS2576 | MI LICENSE: FR0023580 On May 6, the legislative Finance Committee approved a bill regarding the maximum amount CHFA has to use for uninsured mortgages. As of last week, Governor Malloy signed the bill into law, according to a June 17 press release.
Over the past three years, Connecticut has been putting forth a greater investment in housing for the purpose of improving its communities and stimulating the economy, and this recent law (Public Act 13-65) is part of that. Similar to earlier coverage, the law increases the amount CHFA has for uninsured mortgages from $1.15 billion to $2.25 billion. Greater funds allow CHFA to make more commitments to purchasing these mortgages, which then contributes toward additional construction loans and permanent financing for housing.
The press release further delineates more efforts, outside of CHFA loans, to improve Connecticut’s quality of housing: $136 million, as soon as a bill is signed, will go toward capital funding for the 2014-15 fiscal year to develop or rehabilitate cost-effective housing; $60 million to restore and improve public housing; and $100 million to create 100 new units of supportive housing. Along with this, the Department of Economic & Community Development, the Department of Social Services, the Office of Policy & Management, and the Department of Mental Health & Addiction Services are being consolidated into one single office: the Department of Housing.
McCue is the top lender of CHFA loans in Connecticut and one of the few qualified to offer HERO, which overlaps in some regards. CHFA loans, an option for first-time homebuyers, have been an effort to extend more housing opportunities in the state and currently offer low interest rates and down payments. Although issued by the Connecticut Housing Finance Authority, these loans require mortgage insurance from the Federal Housing Administration, Veterans Administration, or USDA Rural Development. If a down payment of 15 percent or more is made, the borrower has the option of using private mortgage insurance instead.