Finance
A Connecticut first-time homebuyer uses a CHFA (Connecticut Housing Finance Authority) loan. What is a key benefit of CHFA loans?
ANo credit check required
BBelow-market interest rates and down payment assistance for eligible borrowers✓ Correct
CNo property inspection required
DUnlimited loan amounts
Explanation
CHFA provides below-market interest rate mortgages and down payment assistance programs for eligible first-time homebuyers and low-to-moderate income borrowers in Connecticut. CHFA programs make homeownership more accessible to those who might not otherwise qualify.
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Key Terms to Know
Private Mortgage Insurance (PMI)
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Math Concepts
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