CT HB06465

Repeals and replaces Section 8-253 of the general statutes effective October 1, 2011, governing Connecticut Housing Finance Authority mortgage lending and insurance practices.

Clarifies mortgage loan limits: 90% of estimated housing cost for profit-making mortgagors, or 100% for housing authorities, municipal developers, nonprofits, cooperatives, and owner-occupied structures with three or fewer dwelling units.

Establishes that permanent mortgage loans may not exceed 50 years in maturity and must include amortization provisions based on the mortgagor's reasonable ability to pay as determined by the authority.

Permits construction loans to be advanced in installments as work progresses, with the authority retaining no more than 10% of the construction contract price until work is over 90% complete.

Specifies that federal or state mortgage insurance commitments or regulatory agreements take precedence over authority requirements in cases of inconsistency.