homebuying

State Program Offers Down Payment Assistance for New Homebuyers

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A new state program is providing assistance for first-time homebuyers and those who haven't owned a home in the last three years, according to Gov. Lamont's office.

The newly-launched program, called Time to Own, offers down payment assistance for low and moderate-income homebuyers in Connecticut.

Time to Own provides a new source of funding for down payment and closing costs for people applying for the Connecticut Housing Finance Authority's (CHFA) First-Time Homebuyer Program.

“We all know one of the greatest obstacles to homeownership is having a down payment and covering closing costs,” 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.”

The CHFA first mortgage loan is structured as a 10-year, 0% non-amortizing loan. The governor said this means one-tenth of the principal amount will be forgiven each year until it's fully forgiven.

Loans are based of several eligibility requirements, according to the governor's office. This includes the borrower's financial needs, their ability to repay their mortgage, and more.

All applicants must show proof of Connecticut residency for the past three years.

“Governor Lamont and the Connecticut General Assembly are to be commended for allocating funds that will allow thousands of Connecticut residents to secure their own home,” Dept. of Housing Commissioner Seila Mosquera-Bruno said. “It represents a deep commitment by our state leaders to the ideal that the home is place of security, safety, and financial health for our residents and communities. I am thrilled for the Department of Housing to be a part of this landmark initiative.”

Time to Own provides additional financial assistance to homebuyers looking to buy houses in higher resourced communities, where prices are often out of reach.

If a property is in a high or very high opportunity area, borrowers may be eligible for up to $50,000 in assistance. For any other property, the loan amount can go up to $25,000, according to the governor's office. The map of towns across the state, according to opportunity area, can be found here.

To learn more about the program, visit their website or call the CHFA homeownership hotline at 1-844-281-4663.

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