Connecticut First-Time Home Buyers Programs
If you are buying your first home in Connecticut, you can find affordable mortgage options from the Connecticut Housing Finance Authority. Through this agency, eligible first-time homebuyers in the constitutional state can take advantage of low-rate mortgages and down payment assistance. Buyers who buy a home in a special “target area” but are not a first-time homeowner may also benefit from a rate reduction. In Connecticut, a first-time buyer is considered someone who has not owned a home in the past three years.
Connecticut First-Time Home Buyers Loan Programs
HFA Advantage and HFA Preferred Loans
The Connecticut Housing Finance Authority (CHFA) offers both Fannie Mae HFA Preferred and Freddie Mac HFA Advantage Mortgages, which are conventional low-down payment loans. Both of these programs are popular with first-time homebuyers in Connecticut because they offer below-market interest rates and lower mortgage insurance costs if you make a down payment of less than 20%.
To qualify, you cannot exceed the CHFA income and purchase price limits, which vary by city or town. You can check this CHFA Resource Map to see what the limits are where you plan to buy. Additional requirements include:
- Must complete the training course for home buyers
- Must be a single family home, condominium, townhouse or planned unit development (PUD); can be a two to four unit house for the HFA preferential loan
- Must be a primary residence
CHFA Conventional AMI Loan Program (CALP)
CHFA’s Conventional Area Median Income Loan (CALP) program offers loans to first-time homebuyers who cannot qualify for an HFA Advantage or HFA Preferred loan because their income is over 80%. percent of the region’s median income (AMI). CALP offers the same benefits as an HFA Advantage or HFA Preferred loan, and income and purchase price limits also apply. You will also need to take a homebuyer training course to qualify.
CHFA also offers specialized home purchase programs for certain types of borrowers. These include:
- CHFA Home Ownership Program for People with Disabilities (“Home to You”) – First-time home buyers who have a disability – or plan to live with a disabled family member – may be eligible for a lower-market loan with an additional 0.125% discount through CHFA. In addition to meeting income and purchase price limits, you must provide proof of disability and complete a homebuyer training course in order to be eligible.
- CHFA Public Housing Program for Residents – First-time buyers who are currently tenants of rental accommodation or who participate in a rental assistance program may be eligible for a mortgage loan at a reduced interest rate. You must meet minimum credit, employment and income requirements to be eligible for the program.
- CHFA Military Home Ownership Program – Available to veteran first-time buyers, current military members and surviving spouses, this CHFA program reduces any already low-rate mortgages through the agency by an additional 0.125%. You will need to meet income and purchase price limits and complete a homebuyer training course to qualify.
- CHFA Policy Home Ownership Program – First-time buyers who are police officers can also get a 0.125% discount on a low-rate mortgage through CHFA. You must buy a house in one of the 23 participating cities where you work, or, if you are a state police officer, in any participating city. If your city isn’t a participant, CHFA could still help you qualify, so be sure to ask.
- CHFA Mortgage Assistance Program – First-time buyers who are teachers can get an additional 0.125% reduction on a loan at the lower market rate through CHFA. Minority teachers can get a larger 0.250% discount, as well as other incentives if they graduate from a Hispanic school, historically black college, or public high school within a “district”. of state education reform. To be eligible overall, you must be employed in a “priority school district,” a “state-identified material shortage area” or “Alliance District”, which are listed on the CHFA website. If you are employed in a priority district, the house you buy must also be in that district, unless you are a minority teacher.
- CHFA Mobile Prefabricated Home Loan Program – Offered to first-time buyers and regular buyers, this program allows mobile home buyers to benefit from reduced closing costs and a low interest rate. There is a 20 percent down payment requirement. In addition to meeting income and purchase price limits, you must adhere to mobile home guidelines established by CHFA, which state that the home is: a primary residence year round; in an approved mobile home park; and on a permanent foundation without axles, fasteners or wheels. In addition, you will need to sign an annual renewable land lease agreement. (Note: There is no income limit if you buy a mobile home in a “target area”.)
Connecticut down payment assistance
CHFA down payment assistance program (PAA)
CHFA’s Down Payment Assistance Program (DAP) for first-time homebuyers offers low-interest loans ranging from $ 3,000 to $ 20,000 to be used for a down payment or at closing costs. The loan is a second mortgage and has the same lower interest rate as your first mortgage.
Down payment assistance can be combined with any CHFA loan except the Prefab Mobile Home loan. To be eligible, you must be eligible for a CHFA first mortgage, contribute at least $ 1,000 towards the purchase, and complete a homebuyer training course.
Other first-time home purchase loan programs
First-time homebuyers in Connecticut should also look to low-down or no-down loan programs that can help accelerate the path to homeownership. These include FHA, VA, and USDA loans, which have eligibility criteria that are not as strict as conventional loans. With one of these programs, you could be approved for a loan even if your credit score is lower or if you cannot afford a higher down payment. To learn more about these types of mortgages, go to Bankrate First-Time Home Buyers and Loans to guide.
For other Connecticut homeownership programs, including by city, visit HUD.gov.
First-time homebuyers in Connecticut can use the Connecticut Housing Finance Authority as a resource when looking for affordable mortgage and down payment programs. CHFA has around 70 mortgage lending partners. To find the most competitive price offers, shop around with several Connecticut Mortgage Lenders. A lender can help you determine which programs you qualify for and how much help you might receive.