Is CHDAP program still suspended? As of January 25,2013 this program was suspended but was told today it's not is that true?

Asked by Katrina Downs, Los Angeles, CA Tue Jan 29, 2013

Was told by my lender that CHDAP was suspended as of jan 25 but got then he told me told it isn't? I feel this is pretty odd how can a program just be suspended for 3 days then its up an running again??

Help the community by answering this question:

+ web reference
Web reference:


Shane Milne’s answer
Shane Milne, Mortgage Broker Or Lender, South Jordan, UT
Tue Jan 29, 2013
It was suspended on January 25th:
And then reinstated on January 29th: (need to close by end of May 2013)

The newest bulletin reads:

The California Housing Finance Agency (CalHFA) is pleased to announce that it is reinstating its
CHDAP Program effective immediately, and is now accepting reservations for new CHDAP
subordinate loans that are combined with FHA-insured first mortgage loans.

HUD has granted Housing Finance Agencies (HFAs), including CalHFA, transition time to comply
with HUD’s implementation of its recent rule interpreting a provision of the Housing and Economic
Recovery Act of 2008, which governs the ability of HFAs to provide down payment assistance on
loans combined with FHA-insured first mortgages.

This transition time allows CalHFA to continue to pursue solutions that will be consistent with FHA
statutory requirements. HUD’s transition relief is temporary. HUD is allowing lenders to fund
directly, and be reimbursed after closing by HFAs, but any CHDAP loans funded in this manner
must close prior to June 1, 2013 or the first mortgage loans may be uninsurable by FHA. On and
after June 1, 2013, HUD will require CalHFA to fund its CHDAP loans directly at closing. Until that
time, CalHFA lenders will follow normal procedures and fund CHDAP loans at closing, before
sending them to CalHFA for purchase. Again, CalHFA is working on developing a solution to
comply with this HUD requirement which will allow homebuyers to continue to utilize CHDAP

Shane Milne | Lending in all 50 states | NMLS #81195
1 vote
Anne, , Rancho Cucamonga, CA
Tue Jun 24, 2014
No, chdap is not suspended. Your question is old but it can be 'suspended' or have a glich as recently as two weeks ago when NHS/Chdap tried to restrict lenders from using a 'regular FHA program' in conjunction with the 3% Chdap Program. By doing this, the lender had to do 'buyer paid' compensation instead of 'lender paid' from which a regular FHA would cover our compensation and pay all but a half percent to 'get in' the home.
The debate went on for a couple weeks and Chdap relented, letting us carry on with getting homebuyers in for a half percent! When it's cheaper to make the housepayment than rent; all the buyer needs is a little help to move in and it is also less expensive than paying first month's rent and a security deposit.
0 votes
Katrina Downs, Home Buyer, Los Angeles, CA
Wed Jan 30, 2013
Yes thank you Shane your a life safer :)
0 votes
Shannon Chang, Agent, Arcadia, CA
Wed Jan 30, 2013
Shane below has gone through a lot of trouble to get you the right information.
0 votes
Claudia Mull…, Mortgage Broker Or Lender, Fremont, CA
Wed Jan 30, 2013
This is FHA. FHA is GOVERNMENT sponsored mortgage insurance. If any program is going to act in an "odd" fashion, it would be FHA!!
Good stuff below.
0 votes
Shanna Rogers, Agent, Murrieta, CA
Tue Jan 29, 2013
Hi Katrina,

I had a buyer using this - with FHA - and it was suspended a few days ago (for FHA). However, I just checked with my buyer's lender and it HAS been re-instated (for FHA). YAY!!

Shanna Rogers
SR Realty
0 votes
Eliseo Areba…, Agent, West Hollywood, CA
Tue Jan 29, 2013
Hi Katrina,

I believe the suspension only applies to those buyers who would be using CHDAP funds along with FHA insured mortgages. Those with conventional, USDA and VA insured first mortgages should be unaffected.

Eliseo Arebalos
0 votes
Walter 'Skip'…, Agent, Brea, CA
Tue Jan 29, 2013
I was told the same information (suspended then restored) by one of my lenders.
Good luck,
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more