chfa schools to home: prevent common document submission errors

CHFA Schools To Home^sm was created to help Colorado public school employees purchase homes and live in the communities where they work.

Recent CHFA Schools To Home loan submissions have included incomplete or incorrect documentation. Review the common issues below before submitting a loan to help prevent processing delays, denial, and a potential repurchase requirement. Failure to comply with program requirements, including the use of the correct program-specific second mortgage documents, may result in the loan being deemed ineligible for CHFA purchase. In such cases, the Participating Lender would retain servicing of both the first and second mortgage loans.

Issue #1: Program-specific documents not utilized and/or not completed correctly

Before completing the program-specific documents listed below, review the Document Completion Instructions page at the beginning of each form. Following those instructions will help ensure that you use the correct form and complete all required fields accurately.

• CHFA Form 390, Subordinate Shared Appreciation Note
  • Shared appreciation percentages are frequently entered incorrectly. Refer to the sixth bullet on the Document Completion Instructions page for guidance on entering the Shared Appreciation percentage.
• CHFA Form 395, Subordinate Shared Appreciation Deed of Trust
• CHFA Form 250, Shared Appreciation Rider
  • Important: CHFA Form 250, Shared Appreciation Rider, must be recorded with CHFA Form 395, Subordinate Shared Appreciation Deed of Trust.

Issue #2: Incorrect plan codes from document preparation companies

If you cannot access the required documents through a participating document preparation service, use the documents available on CHFA’s website or in CHFA HomeConnection^sm.

All CHFA Participating Lenders with the ability to originate Fannie Mae loans have automatic access to this program. No additional training is required. If you did not attend a scheduled training, review the CHFA Schools to Home training materials available on the CHFA website before originating or submitting a CHFA Schools To Home loan.

CHFA Home Finance
Homeownership@chfainfo.com
888.320.3688 - Homeownership Team