Prior homeowners and first time home buyers buying a home in Connecticut who need financial assistance for down payment or need a flexible and affordable mortgage loan program can apply for homebuying programs from the Connecticut Housing Finance Authority. Mortgage programs offered by Connecticut Housing are highly competitive and in many cases offer below market interest rates and low fees.
What Mortgage Loan Programs Are There In Connecticut For First Time Home Buyers?
The Connecticut Housing Finance Authority has programs to assist first time home buyers with getting into your first home. The following are summaries of the most common mortgage programs that the CHFA has to offer home buyers in Connecticut.
The Connecticut Homebuyer Mortgage Program
This program offers 30-year, fixed rate mortgages, with below market interest rates. The low interest rate for the Connecticut Homebuyer Mortgage Program makes it an attractive mortgage loan program for many first time home buyers. To qualify, hopeful home buyers must apply through participating mortgage lenders and banks located throughout CT.
Qualified home buyers to be eligible for the Connecticut Housing Home Buyer Mortgage Program must meet certain income and home purchase price requirements. These requirements are based on the location of the home to be purchased as well as the household family size of the borrower getting the mortgage.
First time home buyers can use this program to purchase a home anywhere in Connecticut, but prior homeowners can use this program to purchase a home if they are buying a home that is located in a economically and community development targeted area. Income and purchase price limits are expanded in Targeted areas.
The Connecticut Homeownership Program
CHFA has a 30 year fixed rate mortgage for people living in public housing. This program is called the Connecticut Homeownership Program. An interested borrower must attend a homebuyer education class to assist them for what it will take to own a home.
Loan and program guidelines from the Homebuyer Mortgage Program apply to this program with the exception of special income requirements, and proof that the home buyer has been a resident of housing managed by a state or municipal Housing Authority, receives Section 8 rental assistance, RAP, DMR, State Moderate Rental Program, a tenant of a CHFA-financed rental property, or a tenant of a HUD-subsidized housing program.
Homebuyers in the program must be first time home buyers unless the subject property of the mortgage is located in a targeted area. Eligible borrowers in this program can also qualify for Downpayment Assistance Loans (see below).
Additional Homebuyer Programs From CHFA
- Home of Your Own Program – The HOYO program is designed to help people with disabilities to be able to buy homes. You must be able to provide proof of your disability compensation from Social Security, SSI, DMR or other forms of disability payment.
- Military Home Ownership Program – To be eligible for this program you must be serving in the U.S. Military. It can be either Active Duty, Guard or Reserve or be a Veteran who has served in the armed forces.
- Police Homeownership Program – This loan offers a low interest rate mortgage to state and local police officers who are buying homes in eligible municipalities.
- Teachers Mortgage Assistance Program – CHFA has a special low interest rate mortgage to make it easier for certified public school teachers in the state of Connecticut to be able to afford to buy a home. You must be a first time home buyer or not have owned a home in the past three years.
- Pilot Homeownership and Downpayment Assistance Program for Manchester – This program is now available to assist first time homebuyers looking to purchase a home in one of the specified targeted areas of Manchester.
Can You Get Down Payment Assistance In Connecticut?
The Down Payment Assistance Program - This Program is also known as DAP. The down payment assistance program gives homeownership opportunities to eligible buyers who do not have down payments of their own. A DAP loan can only be used with a CHFA first mortgage. DAP loans are available at an interest rate of 1% to some eligible borrowers under the states Homewownership Program. DAP loans are available across the state.
SmartMove Homeownership Fund Second Mortgage Program - This down payment loan program is only available from the Housing Development Fund and the CHFA for buying a home in Fairfield County - including the cities of Stamford, Danbury, Norwalk, and Bridgeport. Interested home buyers should check with the following lenders if they are interested in this program: Citibank, First County Bank, Newtown Savings Bank, People's Bank, Savings Bank of Danbury. This loan program is a pilot program. The program provides a second mortgage loan to cover 20% of the sales price at a 3% interest rate.
To get additional information about down payment assistance programs, or to find out more about mortgage programs please complete the information below:
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