Neighborhood Rebuilder: How the Financing Works

Chiffy The example below illustrates a typical financing scenario under the Neighborhood Rebuilder Program. A bridge loan is also included as a source of financing in this example.

Location of property: Hartford, Connecticut
Building Type: One unit, single family home
Profile of Homebuyer: Annual income of $33,000 to $55,000; 4 person family

Total Development Costs $115,000
After-rehab value of the property $90,000
Financing Shortfall filled with Gap Subsidies $25,000
Sources of Funds - Construction Financing
CHIF Construction Loan (95% LTV) $85,500
CHIF Bridge Loan (bridges Municipal Appraisal Gap Program) $20,000
CHIF Subsidy $5,000
Owner Equity $4,500
Total Sources $115,000
Sources of Funds - Permanent Financing for Homeowner
First Mortgage and Homeowner's downpayment $90,000
Municipal Appraisal Gap Program $20,000
Assumption of CHIF Gap Subsidy $5,000
Total Sources $115,000

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CHIF staff regularly confer with staff from the Connecticut Department of Economic and Community Development in administering the Energy Conservation Loan Program.

Staff from the City of New Britain discuss the transfer of their portfolio to CHIF for servicing. CHIF services three loan programs for New Britain.

CHIF Program Administrators are available to assist applicants with Energy Conservation and Home Improvement Loans.

CHIF offers a variety of loan programs for Connecticut homeowners. CHIF offers programs for first-time homebuyers, as well as programs for existing homeowners to make their homes more energy-efficient.