If you are a first time home buyer there are down payment assistance programs in Connecticut that can help you purchase your first home. Many people are eager to buy a home right now while affordability continues to be a highlight of the current housing market.
However, a recent survey by Sparks Research shows that 20% of first-time homebuyers cite a lack of financial education as a barrier to homeownership. This is definitely understandable.
If you don’t feel comfortable with the financial process of buying a home, it’s hard to make a confident decision. In fact, four in five homebuyers say they need help to understand what they can even afford in the first place. This is why finding the right professionals to help you through the process is so important.
On top of that, the same survey reports over two-thirds of prospective homebuyers believe they’ll need assistance to save enough for a down payment.
What they may not realize is that there are a lot of down payment assistance programs at the state and regional levels, and many of them have funds available for potential buyers.
Down Payment Resources recently released its Q3 2020 Homeownership Program Index, which explains:
“The number of total programs is 2,340, and over 81 percent (81.1%) of programs currently have funds available for eligible homebuyers.”
Down Payment Assistance Programs Are Not Only for First-Time Homebuyers
Keep in mind, these programs aren’t just for first-time homebuyers. These programs typically define a first-time buyer as one who hasn’t owned a home for the past three years so it is worth exploring your options no matter where you are in your homeownership journey to see if you can qualify.
There are also some mortgages that you can get that don’t require a down payment like USDA home loans for example if you are looking into living in a more rural area this is worth checking out as well.
Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), explains:
“Rural areas have mortgages (USDA loans) that don’t require down payments; and some workers who can work from home may want to consider outer suburbs or small towns where USDA home loans are available and where homes are very affordable.”
The requirements for each program vary and if you are considered a first time home buyer these programs typically:
- Has you take a homebuyer education course.
- You have to Meet certain income limits. Many programs are geared to low- and moderate-income residents, so a borrower’s household income must be below a certain limit.
- The Purchase of the home may need to be in an approved location to be able to use the program.
- You may have to to stay below the maximum home purchase price, which is usually a percentage of an area’s median home purchase price.
- Depending on the program you may have to contribute some of your own money towards the purchase as well.
Connecticut Down Payment Assistance Programs
Here in Connecticut there is a program called CHFA that is well known which stands for Connecticut Housing Finance Authority is a program you can look into.
This program offers down payment assistance in the form of a second mortgage. The interest rate on that will normally be the same as that for your main mortgage. However, some borrowers may be entitled to lower Down Payment Assistance rates as well.
Also, check out the U.S. Department of Housing and Urban Development as well for Connecticut. They break down statewide and regional programs that are available and programs that are offered in each town. There are twelve towns when I last checked I last checked for Connecticut.
If you are interested more information about down payment assistance programs, additional information is available through Down Payment Resource.
Thanks to a range of down payment assistance programs in Connecticut, affordable options are out there for today’s hopeful homebuyers. It’s important to get the financial education you need to understand the homebuying process and accomplish your real estate goals. Let’s talk today to get you started on the path to your dream home.
I am committed to the real estate market to make sure you have all the information you need to make your next move. Review all the information I have put together for you here on my website. If you would like more information on any issues of concern as well please contact me. I look forward to hearing from you. Have a great day.