Smart Rate Pilot Interest Rate Reduction Program

A significant obstacle to homeownership is a potential homebuyer’s inability to qualify for the purchase of a home due to student loan debt. For a limited time, the SMART RATE program will help households overcome the obstacle of student loan debt to afford their first home.

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  Benefits

  • 1.125% reduction of the CHFA first mortgage interest rate.  
  • Will help offset the borrowers’ student loan debt monthly payment.   
  • Down payment & closing cost assistance available through either Time To Own or the Down Payment Assistance program.

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  Eligibility Requirements

  • Borrower must use CHFA First Mortgage program .

  • Borrower must have a cumulative unpaid student loan debt balance of at least $15,000 at the time of CHFA final loan commitment.
  • Borrower must be in good standing (current) on their student loan. 
  • Student loan may be in repayment status or deferred.
  • Borrower income may not exceed 100% of the Fannie Mae/Freddie Mac AMI (Area Median Income) limits in effect.

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  Additional Considerations

  • Applicants must meet all CHFA first mortgage eligibility and underwriting criteria, to include income and sales price limits. The CHFA Participating Lender will work with applicants to determine complete program eligibility requirements. 
  • Learn more about taking the first steps to becoming a homeowner here.

How to Apply 

CHFA has nearly 70 participating lenders across the state, so contact CHFA- Participating Lender near you and apply!