Regulations of Connecticut State Agencies
Participating lenders shall be responsible for evaluating the credit of applicants for CHFA mortgage loans.
In determining whether or not an applicant meets CHFA income limitations, where applicable, an applicant's aggregate family income shall be computed by including the elements discussed herein.
(a) An applicant's aggregate family income shall include income from whatever source derived, including without limitation, regular earnings; part-time earnings; unemployment compensation; bonuses; overtime income, whether or not guaranteed by an employer; dividends; interest (except on funds which will be used for downpayment and closing costs); commissions; military allowances; welfare payments; disability payments; pension, annuity, retirement, and social security benefits; and reimbursement for services in military reserve or National Guard. CHFA may at its option exclude overtime income where it deems such income to be of short duration and of a temporary nature.
(b) Aggregate family income shall also include income from full or part-time employment of all proposed owner-occupants and all other non-dependent resident members of the family unit of the applicant. Income received prior to the date of the application shall not be included in aggregate family income if the member of the family unit who earned such income has not been employed for at least ninety (90) days prior to the application. The prior annualized income of said persons will be included in aggregate family income if said eligible borrower or occupant has been employed during the ninety (90) days prior to the date of application.
(c) Aggregate family income, for purposes of determining compliance with the applicable income limit, shall include one hundred (100%) percent of the anticipated fair market income from rental units in a two to four unit eligible dwelling to be purchased by the applicant with the assistance of the CHFA mortgage loan. For underwriting purposes, fifty (50%) percent of such rental income shall be included in the applicant's total income.
(d) Aggregate family income shall also include alimony, child support, or maintenance payments only to the extent that they are likely to be consistently received. Factors to be considered in determining the likelihood of consistent payments include, but are not limited to, whether the payment are received pursuant to a written agreement or court decree, the length of time the payments have been received, the regularity of receipt, the availability of procedures to compel payment, whether full or partial payments have been made, the age of any child for who child support is to be paid, and the creditworthiness of the obligee, including the credit history of the obligee where available under the Fair Credit Reporting Act (section 1681 et seq. of title 15 of the United States Code) or other applicable laws. A participating lender shall submit to CHFA evidence adequate to support its determination.
(Effective January 27, 1986)