Time To Own – Forgivable Down Payment Assistance Loan Program
The Connecticut Housing Finance Authority launched the Time To Own – Forgivable Down Payment Assistance Loan Program to help potential first-time homebuyers with their closing costs and down payment. The Connecticut Department of Housing entrusted CHFA with its administration, and it is funded with $20 million from the State Bond Commission’s December allocation for homebuyer aid.
“We all know one of the greatest obstacles to homeownership is having a down payment and covering closing costs,” Governor Lamont said. “This program breaks new ground, offering homebuyers the opportunity to secure their first home with help of an innovative, forgivable loan program. It will bring the dream of homeownership to life for thousands of Connecticut residents.”
Only qualified applicants who are approved for and obtain a CHFA first mortgage are eligible for the Time to Own loan. The program may also be used in conjunction with other programs that provide aid with down payments. To be eligible, applicants must currently live in the State of Connecticut and have been there for at least three years. They have to be low and moderate-income homebuyers or have a household income lower than 80% of the Area Median Income.
“Homeownership can lead to stronger, more resilient communities, and for most Americans, homeownership still represents the best path forward to building intergenerational wealth,” Nandini Natarajan, CEO of the Connecticut Housing Finance Authority recently stated.
Some of the Time To Own program’s benefits include a 0% Interest rate with no monthly payment required and financial aid that will cover up to 20% down payment and up to 5% closing costs. The minimum amount homebuyers may receive is $3,000.00, and the maximum is $50,000.00. The loans will have no interest and no monthly payments, and each year, a portion of the principal will be forgiven.
For more information on the Time to Own down payment assistance program visit www.chfa.org/TimeToOwn or call CHFA’s homeownership hotline at 1-844-CT1-HOME (1-844-281-4663).