Posted on: 04th Dec, 2009 02:31 pm
In Connecticut, the Connecticut Housing Finance Agency is the authority that is a first-time home buyer's best bet for the premier product. At this time, their interest rate for first timers is 4.375%, which is as good as you can get, particularly when you consider the other benefits of the program.
First time homebuyers with a minimum credit score of 620 and low to moderate income, buying a moderately priced home, can be eligible for maximum financing. The program follows FHA guidelines, which call for 3.5% down payment, but there is an add-on which is a definite boon to those who are lacking funds overall.
CHFA also has a Downpayment Assistance Program - again based on a person qualifying - that can provide closing cost and down payment assistance, up to a maximum ltv exposure of 105%.
Income restrictions apply, depending on locale. Price restrictions also apply, depending on locale. Several areas within the state are "targeted areas" and limits are less stringent for buyers there.
Qualifying buyers will be those whose credit may be damaged but not irreparably so (charge offs and collections, etc. would need to be paid).
The first time homebuyer program has benefited thousands of Connecticut homeowners throughout the years, and rates have traditionally been lower than found on virtually every other loan offered in the state.
First time homebuyers with a minimum credit score of 620 and low to moderate income, buying a moderately priced home, can be eligible for maximum financing. The program follows FHA guidelines, which call for 3.5% down payment, but there is an add-on which is a definite boon to those who are lacking funds overall.
CHFA also has a Downpayment Assistance Program - again based on a person qualifying - that can provide closing cost and down payment assistance, up to a maximum ltv exposure of 105%.
Income restrictions apply, depending on locale. Price restrictions also apply, depending on locale. Several areas within the state are "targeted areas" and limits are less stringent for buyers there.
Qualifying buyers will be those whose credit may be damaged but not irreparably so (charge offs and collections, etc. would need to be paid).
The first time homebuyer program has benefited thousands of Connecticut homeowners throughout the years, and rates have traditionally been lower than found on virtually every other loan offered in the state.
Hi George,
The CHFA sponsored Downpayment Assistance Program is really a good option for many of the homeowners, who do not have enough money to put down on the mortgage. Zero down payment loans are extinct these days and seller financed closing costs have also gone out of existence. Such programs, like the one offered by CHFA, is a boon for thousands of home buyers in this turbulent economy.
The eligibility requirements for loan programs offered by CHFA are not too stringent. The required credit score of 620 is a minimum these days and the down payment requirement of 3.5% is not at all strict, given the condition of the current market. However, buyers aspiring to take advantage of these first time buyer loan programs and down payment assistance programs must maintain a clean credit and should not have derogatory items on their credit report. But this, I believe, is no big deal given the benefits that a buyer can enjoy through these programs.
The CHFA sponsored Downpayment Assistance Program is really a good option for many of the homeowners, who do not have enough money to put down on the mortgage. Zero down payment loans are extinct these days and seller financed closing costs have also gone out of existence. Such programs, like the one offered by CHFA, is a boon for thousands of home buyers in this turbulent economy.
The eligibility requirements for loan programs offered by CHFA are not too stringent. The required credit score of 620 is a minimum these days and the down payment requirement of 3.5% is not at all strict, given the condition of the current market. However, buyers aspiring to take advantage of these first time buyer loan programs and down payment assistance programs must maintain a clean credit and should not have derogatory items on their credit report. But this, I believe, is no big deal given the benefits that a buyer can enjoy through these programs.
here in CT, we see plentiful opportunities for borrowers to request closing cost assistance, especially on the housing stock that's in trouble (short sale, bank-owned, etc.). with DAP loans, underwriting is harsher in terms of how debt ratios are viewed, so eliminating or minimizing the need for the DAP loan is a motivating factor in these deals.
