The Connecticut Housing Finance Authority has added a new mortgage, the Freddie Mac HFA Advantage loan, to its options for first-time homebuyers. The new loan is similar to the HFA Preferred loan, the most popular loan currently offered by CHFA, with the same benefits for borrowers, including no upfront mortgage insurance costs; lower monthly mortgage insurance costs; mortgage insurance premiums that end when the borrower reaches 20 percent equity; and financing of up to 97 percent of the loan.
The loans are only offered through lenders that are part of the CHFA-approved network. The agency noted, however, that some lenders prefer working with either Freddie Mac or Fannie Mae, so offering the products of one but not the other tends to limit the number of lenders participating in the network.
“Adding the HFA Advantage loan to our portfolio will encourage lenders who prefer Freddie Mac to become CHFA-approved lenders,” said Karl Kilduff, executive director of CHFA. “A larger lender network makes it easier for potential borrowers to find a lender to help them obtain an affordable CHFA mortgage.”