Eligibility FAQ

We currently work with individual loan officers at Chase Bank. Our preferred lending partners have a deep understanding of not only our program but also the communities we serve. They help us provide the best experience for each of our borrowers. Our list of preferred lenders will continue to expand. We may also fund a loan outside our preferred lender list.

The Homes by CFE program is a Special Purpose Credit Program designed to support communities that have experienced racial disparities in homeownership in DC. Click the Down Payment Assistance menu above to learn more about special purpose credit programs.

No. Homes by CFE only provides its assistance in the form of a loan that must be repaid. The DPA Program includes a five-year interest deferred period. Principal and interest payments begin in year six. The full balance of the loan and deferred interest is due in full when the property is sold, refinanced, or transferred.

Yes. For eligible borrowers, we combine down payment assistance and additional purchase assistance into one loan. Purchase assistance is optional.

Homes by CFE is currently supporting the purchase of properties in the District of Columbia, Prince George’s County, Charles County, Baltimore City, and Baltimore County, Maryland.

Homes by CFE supports the purchase of single-family properties, including condominiums, townhouses, row houses, and co-operatives. We do not support the purchase of multi-family units or mobile homes. The property’s purchase price must not exceed the maximum purchase price stated in the eligibility terms above.

The Homes by CFE maximum Loan to Value (LTV) is 105%, including any additional purchase assistance if qualified. If the total amount of assistance the borrower is eligible for and the total amount financed (including Homes by CFE’s assistance) is over 105% LTV, we will reduce the assistance amount to ensure that the total amount financed, including the first trust mortgage, remains below 105% LTV. 

We don’t have a minimum credit score to qualify for the program, but borrowers must be able to qualify for a first-trust mortgage loan, and each first-trust lender may have a minimum credit score requirement. We conduct a credit check mainly to verify that you have a good credit history, and, in many cases, we can utilize the credit report provided by the first-trust lender.

Yes.  Our underwriting fee is $500.00 for loans under $50,000.00. For loans over $50,000.00 the underwriting fee is 1% of the total loan amount.

The accrued deferred interest is repaid when the property is sold, refinanced or the loan matures.

Yes! We understand the challenges of purchasing a property in a high-cost market. To expand homeownership to more individuals, we encourage buyers to explore all other programs available. Stacking assistance programs allows borrowers with lower incomes to obtain an affordable mortgage on a property that suits their family’s needs.

Borrowers typically have to contribute 1-3% to their total property purchase. Homes by CFE provides additional purchase assistance of $10,000 up to a maximum CLTV of 105% for borrowers under 100% MFI. The total amount of assistance will be determined and provided to the borrower before closing the loan.

Homes by CFE’s DPA Program only works with conventional mortgages.

No. Conventional mortgages typically require a credit score of at least 620. Each first-trust lender sets their own interest rate, and rates may vary from lender to lender.

Borrowers should use the interest deferral period to build savings and pay down other debts with an eye on the future. Successful borrowers should position themselves to refinance and pay off their Homes by CFE balance as soon as possible. When the property is refinanced, the full balance of the Homes by CFE loan, including any accrued deferred interest, will be repaid. The borrower will then have a single mortgage payment with a single lender.

Yes! Please see our list of homeownership resources from the Homes by CFE menu above.