One of the most common responses I get to the question “Why don’t you buy versus rent?”, is, “I am not ready to buy because I don’t have enough saved!” This is a common misconception because…well FACTS!
With various first-time home buyer (FTHB) programs available, you will see what I mean.
Let’s start!
Connecticut Housing Finance Authority or CHFA
CHFA offers 30-year, fixed-rate mortgages with below-market interest rates to low-to-moderate-income families and individuals in Connecticut. (Connecticut Housing Finance Authority, n.d.) CHFA has various special loan programs for Teachers, Police Officers, Military, Veterans, and Connecticut residents with disabilities.
How does CHFA help me buy a home?
Within CHFA there is a Down payment Assistance Program or DAP loan. This DAP loan is a low-interest second mortgage that is in place to help with either the down payment, closing costs, or both. You may qualify for the DAP loan if you have the monthly income to support the mortgage.
For more information on the Down payment Assistance Program… Click Here
To qualify for a CHFA mortgage you must:
- Be a first-time home buyer or not have owned a home in the past three years.
- Purchase within the CHFA Sales Price Limits of the town you are looking in.
- Have an income within CHFA Income Limits.
- Purchase in a qualified Target Area
Capital for Change or C4C.
C4C has a variety of programs and services to help people purchase homes and keep housing safe, efficient, and affordable. We offer energy-efficiency loan programs, mortgage assistance and repair loan programs for home buyers/owners, and homeownership counseling and services for homeowners in danger of losing their homes. (Capital for Change, n.d.)
At present C4C offers a version of the CHFA program that assists buyers in purchasing a mobile home. This program CHFA Mobile Home Purchase Mortgage is for purchasing a mobile home in a state-licensed mobile home park in Connecticut. A program like this has a bit stricter qualification and does not qualify for down payment assistance.
To qualify for a CHFA Mobile Home Purchase Mortgage you must:
- Be within the program income limits.
- Intend to occupy the property full-time, year-round.
- Not own any other residential or commercial property at the time of purchase
- Have 20% for a down payment for an eligible source.
- Attend the homebuyer education course prior to purchase.
For more info on the CHFA Mobile Home Purchase Program…à Click Here
Housing Development Fund or HDF
HDF works to make buying your first home affordable with their first-time home buyer education and down payment assistance programs. They are there every step of the way to help you succeed in buying your new home! (Housing Development Fund, n.d.)
HDF has two loan programs for eligible Connecticut Residence:
SmartMove CT offers low-interest down payment assistance for Connecticut first-time homebuyers for up to 25% of the purchase price when used for the down payment and any qualified closing costs.
- Live Where You Work CT or LWYW
Live Where You Work offers up to $20,000 as a 0% loan for the down payment and closing costs.
To qualify for HDF programs you must:
- Not have owned a home for the last 3 years.
- Not have had a bankruptcy in the last 4 years.
- Not have had a foreclosure in the last 7 years.
- Not have any collections, charge-offs, or current past-due accounts on a credit report
- Prepared to purchase within the next year.
- Have at least 1% of the purchase price
- Have at least 2 years of steady work history in the same industry
- Have on-time debt management and bill payment history
- Be a U.S. citizen or permanent resident.
- Be income eligible.
For more information on Housing Development Fund…à Click Here
What about FHA!
If by chance you do not qualify for a CHFA Loan, there is still a chance for you to obtain financing with a Federal Housing Authority (FHA) Home Loan. You can qualify for a 3.5% down FHA loan with a 580-credit score and a 10% down FHA loan with a 500 credit.
To qualify for an FHA Loan, you must:
- Have a 580 FICO to have a 3.5% down payment.
- Have a 500-579 FICO to have a 10% down payment.
- Pay Mortgage Insurance Premium (MIP)
- Have a Debt-to-Income (DTI) ratio of less than 43%
- Be purchased as a primary residence.
- Have a steady income and proof of employment.
For more information about FHA Loans…à Click Here
I know this is a lot of information however if you have questions give me a call. I am here to help. Until next time. Be well.
