First time home buyer Connecticut programs and incentives help borrowers from all walks of life get into the real estate market in Connecticut. If you are in the market, do not overlook the programs below.
What Is the State Sponsored Entity for First Time Home Buyers?Â
The Connecticut Housing Finance Authority (CHFA) is the state agency that corresponds with federal agencies and helps connect local borrowers with various incentives and grants. The CHFA has a special page on its website for first time home buyers detailing the entire procedure of getting a house in Connecticut. This is an invaluable resource that every would be homeowner should take into account.
What Is the Homebuyer Education Program?
The CHFA Homebuyer Education program empowers first time home buyers with free classes that teach would be homeowners the ins and outs of the process. You will learn about the various federal programs and state programs that combine to give you a great deal on your first home. In order to qualify for any CHFA program, you must attend a three hour pre-closing or eight hour pre-purchase class.
The three hour class gives you practical advice on buying a home under a CHFA program. You will also learn how to maintain that home over time. The eight hour pre purchase program goes more in depth, and is a great program for the first time home buyer. If you are planning on applying for the Section 8 Housing Choice Voucher Homeownership Program, this eight hour program is mandatory. The CHFA also offers an online education class that is completely free to people who have registered with the CHFA as a first time home buyer. There is a separate program known as the Landlord Education and Housing Counseling Services program for people who are purchasing a multi unit property for the first time.
Who Should Consider the Homebuyer Mortgage Program?
The Homebuyer Mortgage Program is the basic program for people who are looking for help under the auspices of the CHFA. The program is geared towards first time home buyers, especially those who are looking at properties in areas that are federally targeted.
What Does the Downpayment Assistance Program Do?
The Downpayment Assistance Program is a CHFA program that helps the first time home buyer pay the upfront expenses of the home purchase. It may also be used for closing costs.
Are There Any Special Programs for Teachers, Military Personnel and Police?Â
The CHFA offers special mortgages that are available only to police, military on active duty, and public school teachers. Members of the National Guard, military veterans, and their spouses are also eligible under this program.
What Is the Homeowner’s Equity Recovery Opportunity (HERO) Loan Program?
The HERO program gives the first time home buyer the chance to buy a property that needs to be rehabilitated. Foreclosed and abandoned properties are also available for purchase under this program.
Is the HFA Preferred Loan Program Right for Me?
The HFA Preferred Loan Program is a first time home buyer program that gives a 30 year fixed rate mortgage with the additional benefit of low mortgage insurance requirements. In most cases, if you are not bringing at least 20 percent of the total home value to the table up front, you will be responsible for an additional insurance payment.
The Smart Move Second Mortgage Program is another choice for first time home buyers if you need a low interest loan for your closing costs or down payment. However, you must be located in Litchfield, New Haven, or Fairfield County.
How Does the Veterans Homeownership Pilot Program Help Veterans?
The Veterans Homeownership Pilot Program is not meant specifically for first time home buyers, but it can be used by first timers who are also veterans. This loan is a zero percent interest loan with a maximum benefit of $10,000.
What Is the Homeownership Mortgage Program?
The Homeownership Mortgage Program is meant specifically for current tenants of public housing who are looking to become a first time homeowner. These loans are given at below market interest rates, and you may have the loan insured by a government entity or a non government entity. The loan is a 30 year, fixed rate program, and it is meant for HUD subsidized properties, CHFA financed rental units, and other residential properties that are managed by the CHFA or other municipal authorities.
Who Does the Home of Your Own Mortgage Program (HOYO) Help?
The HOYO program is meant for first time home buyers with disabilities. Although people who are not first time home buyers may qualify under certain circumstances, first timers have the widest choice of property.
How Do I Qualify for CHFAÂ Loan Programs?
The easiest way to qualify for CHFA programs is to first qualify for federal real estate programs such as the Federal Housing Administration (FHA), the United States Department of Veterans Affairs (VA), or the United States Department of Agriculture (USDA). The eligibility requirements for these federal programs often overlap with the CHFA requirements that are necessary for many of the above programs.
You may also qualify for CHFA programs if you can get private subsidies from local banks in Connecticut. One of the best ways to find a good local bank is to focus on institutions that work with the United States Department of Housing and Urban Development (HUD). HUD administrates the Section 8 program directly, and the requirements to become eligible for the programs of the private HUD lenders often overlap with federal requirements.
2 Point Highlight
The Downpayment Assistance Program is a CHFA program that helps the first time home buyer pay the upfront expenses of the home purchase.
The Homeownership Mortgage Program is meant specifically for current tenants of public housing who are looking to become a first time homeowner.
