People's/CHIF Home Improvement Loan Program FAQ | CHIF

People’s Bank/CHIF Home Improvement Loan Program

How can I qualify for the People’s Bank / CHIF Home Improvement Loan Program?

To qualify for the People’s Bank / CHIF Home Improvement Loan Program you must: 1) own and occupy a 1-4 family home located in the State of Connecticut; 2) your current gross income must not exceed the program’s established income limits for your family size; 3) you must have good credit.

What are the program’s established income limits?

Income limits vary depending on the size of your family and the location of your home. Call (800) 992-3665, ext. 2019 or 2023 for income guidelines for your area or E-mail:

Do I need an appraisal?

No appraisal of your home is required to apply for the CHIF People’s Bank Home Improvement Loan Program.

How much money can I borrow?

The minimum loan amount under the People’s Bank/CHIF Home Improvement Loan Program is $400. The maximum amount you can borrow is $10,000. These figures are based on your ability to repay the loan. To determine just how much you can borrow we will add up all of your existing debts, i.e., mortgage, insurance, real estate taxes, car loan, student loan and 3% of the balance on your revolving charge cards and compare that figure to your income level.

How is the interest rate determined?

Under this program, interest rates are fixed at the attractive low rate of 7.99%, regardless of your income or outstanding debt.

What are the terms of the loan?

Repayment of the loan is figured for a maximum period of 10-years. Borrowers may repay the loan sooner if desired. A $10,000 loan repaid over 10-years at an annual percentage rate of 7.99% would amount to a monthly loan repayment amount of $121.27 for 120 months. Borrowers may repay the loan sooner if desired with no prepayment penalty.

Do I need excellent credit to qualify?

Yes, CHIF will look to see that all of your credit accounts are current. We want to know that you have a strong history of repaying any debts that you personally incur. If you have a question about your credit history, you may contact a CHIF loan officer.

How long is the application process?

The entire process averages between three to four weeks from the time we receive your online application in our office to the actual closing or granting of the loan. When CHIF first receives your application, we will verify receipt of all requested documents then we will run a check of your credit history. Next we will underwrite the loan to see if you meet the income requirements and debt-to-income ratio. Once we determine that you qualify for People’s Home Improvement Loan program, we will notify you either by phone, mail or email.

Do I need to send an estimate or proposal along with my application?

One of the attractive features of this program is that no estimate or proposal is required at the time of application. A written estimate will be required later in the application process.

What other materials should I submit with my application?

Please see the instructions at the beginning of the online application but in addition to the completed application form, you will need to forward a $25 non-refundable application fee in the form of check or money order. You will also need to submit copies of the past two years’ federal tax returns with schedules and W-2 forms, and two of your most recent paystubs. All of these materials are necessary in order to process your application and grant your loan request.

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