Buying a Home with Low Income in Connecticut
Connecticut’s First-Time Buyer Assistance Programs!
1. Connecticut Housing Finance Authority (CHFA) Initiatives!
Connecticut Housing Finance Authority spearheads various programs catering to low-income first-time homebuyers. From below-market interest rates to tailored mortgages for families meeting income criteria, CHFA provides a gateway to affordable homeownership.
- HFA Advantage and HFA Preferred Loans: Offering reduced mortgage insurance costs, these loans support buyers until they reach 20% equity, eliminating the need for ongoing mortgage insurance.
- Homebuyer Mortgage Program (HMP): Providing below-market interest rates and down payment assistance, this program extends its benefits even to those purchasing in specific areas, regardless of income and sales price limits.
- Down Payment Assistance Program (DAP): Empowering buyers to secure homes with zero percent down, DAP loans cover down payment costs, ranging from $3,000 to 3.5% of the home’s purchase price.
- Mobile Home Mortgage Program: Tailored for mobile homes in licensed parks, this initiative offers low-interest rates and minimal closing costs for year-round, permanently affixed homes.
- Special Discounts for Eligible Borrowers:
- Military or Veteran
- State Trooper or Police Officer
- Teachers in certain subjects or districts
- Disabled (or have a disabled household member)
- A resident of public housing who is buying a home
2. Housing Development Fund (HDF): Bridging Dreams to Reality!
Homebuyer education, down payment assistance and affordable homes are just a few programs that HDF offers first time homebuyers in CT. These programs are available to all Connecticut residents.
- Live Where You Work: Providing zero-interest down payment assistance up to $20,000, this program encourages buying homes in the same city where one works.
- Project Reinvest Homeownership: Offering up to $10,500 in down payment assistance for buyers in Connecticut and New York.
- Smart Move CT: Extending low-interest down payment assistance, Smart Move CT supports buyers with up to 20% of the home’s purchase price.
- Statewide Downpayment Assistance Programs: Allocating up to $25,000 in down payment assistance, these initiatives cater to the needs of first-time homebuyers.
3. Local Municipalities Contributing to the Dream!
Several cities in Connecticut go the extra mile to assist first-time homebuyers.
- Bridgeport: Offers down payment assistance programs according to the city website. (awaiting details).
- Fairfield: Grants up to $30,000 toward your home purchase through a no-interest, deferred loan, repayable upon sale, refinance, or property transfer.
- Hamden: Provides up to $5,000 grant to facilitate down payments.
- Hartford: Offers up to $40,000 in down payment assistance, capped at 20% of the home’s purchase price.
- New Haven: Encourages teachers with $20,000-$40,000 towards home purchases, repayable only upon sale, transfer, or refinancing. To qualify, you must meet these requirements.
- Norwalk: Maintains a list of special affordable homes exclusively available to low-income buyers.
- Stamford: Administers the HOME program, administered by HDF, providing interest-free loans up to $20,000 for home purchases.
- Washington: Offers up to $10,000 in down payment assistance to first-time homebuyers.
