Down Payment Assistance Programs for First-Time Homebuyers in Connecticut

As a state rich in history & attractions, Connecticut – the 3^rd-smallest state and the 29^th-most populated one – gets visitors from all over the US. Known as the “Constitution State,” it offers tourists picturesque, vibrant towns/cities, such as Hartford and New Haven. Cultural landmarks include the house of the very famous author Mark Twin. The beautiful fall foliage and its proximity to NYC & Boston also make it a fair place to live. Sadly, a housing crisis has made Connecticut short of 92,000 homes. That’s why the govt. here has initiated some down payment assistance programs for first-time homebuyers.

Looking for Assistance in a Specific Part of Connecticut?

This page provides an overview of the assistance programs available to first-time homebuyers in the state of Connecticut. It’ll cover statewide and local resources. For specific information on down payment assistance in your area, refer to the local resource provided here:

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Down Payment Assistance in Connecticut

The prices of family homes rose by a whopping 7.7% since the last year. Realtors have estimated that an average home in Connecticut is now selling for a price of $463,000 (Redfin).

However, you can leverage numerous down payment assistance programs to purchase your first home in Connecticut. Stairs Financial offers insights into some of these affordable housing programs. A local can use this info to choose the ideal financial assistance option.

Time to Own Program

The Time to Own Program will put you on the fast track to homeownership. It’ll cover up to 20% of your new home’s down payment and 5% of the closing cost. Normally, you receive up to $25,000 as a loan for a Connecticut home. However, high-opportunity area houses make you eligible to even get up to $50,000. These funds are available to first-time homebuyers and don’t require monthly payments. Also, the loan is forgiven if the buyer occupies the home for a specified period.

Fundamentals

• Assistance type: Forgivable down payment assistance loans
• Sponsor: Connecticut Housing Finance Authority (on behalf of the Connecticut Department of Housing)
• Assistance amount: $50,000 (at max, in designated areas)

Eligibility requirements

• You must get a CFHA first mortgage.
• You must be staying in Connecticut for 3 years.
• You can’t own any other property at the time of the CHFA mortgage closing.
• You must purchase a house in a targeted revitalization area if you have been a homeowner for the past 3 years.

SmartMove Connecticut

Borrowers must meet income and purchase price limits, work with a participating lender, and complete a homebuyer education course under the SmartMove Connecticut program. These funds bridge the gap between making house payments and affording down payments upfront. With the help of interest-free loans like these, homebuyers have to afford only 1% of the purchase price of their new home.

Fundamentals

• Assistance type: Low-interest loans
• Sponsor: Housing Development Fund (HDF)
• Assistance amount: 25% of the purchase price of the home (at max)

Eligibility requirements

• You have to be a first-time homebuyer.
• You must be working with an approved lender.
• Completing homebuyer education is mandatory.
• You should meet specific income and purchase price limits set by the program.
• You must not own a home in the last 3 years with a steady work history of 2 years.

Connecticut Down Payment Assistance Program FAQs

Here are some questions from first-time homebuyers in Connecticut looking for financial assistance with down payments:

1.  What is the Connecticut Down Payment Assistance Program?

Aside from the two programs mentioned above, another down payment assistance program is funded by the Connecticut Housing Finance Authority (CHFA). It gives eligible homebuyers up to $15,000 in the form of a second mortgage. The minimum loan amount is $3,000, and attending a homebuyer education is mandatory.

2.  Are you eligible for payment assistance in the state of Connecticut?

A home-buying aspirant’s eligibility depends on different factors, such as their ability to pay the primary mortgage as well as the DAP loan. Also, they have to get mortgage approval from a participating lender.

3.  Are there any costs/fees associated with these programs for down payment assistance?

While the DAP loans have little to no interest, homebuyers may incur a small application fee. It’s crucial to review the specific terms of each program, such as staying at that place for a certain period (making it a primary residence) to avoid repayment.

Disclaimer: This article is for informational purposes only and should not be considered as legal or financial advice. Please consult an attorney, mortgage lender, or CPA for guidance on your specific situation.

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