Are you trying to buy a home but haven’t been able to save a down payment or closing costs? If you qualify, there may be a solution for you? Nineteen local banks contribute money to the HOUSING DEVELOPMENT FUND (HDF). If your combined family income, which includes any family member in residence 18 or over, is under the income threshold you would qualify to participate in 3 exciting programs. The income limits are $119,000 (Fairfield County), $100,900 (Litchfield County), $90,700 (New Haven County). The borrower still needs good credit of 660 or above and reportable income.
These programs are for first time buyers only, but a first time buyer is defined as anyone not owning a property for the last 3 years.
SMART MOVE CONNECTICUT is a down payment assistance program which will lend up to 20% of the purchase price of the dwelling. It helps the borrower avoid private mortgage insurance and therefore qualify to borrow a higher amount. The primary mortgage is from one of the HDF Partnered Banks. This HDF “second mortgage” is a 3.0% interest loan for a term of 20 years. It cannot be used for closing costs.
LIVE WHERE YOU WORK is a 0% loan of up to $20,000 for people who wish to purchase in the town where they work. It is a zero percent loan with no payments. The loan is repaid when the property is sold. The buyer must contribute 1% of their own money towards the purchase.
SMART CLOSE is intended to help with closing costs and can stand alone or partner with one of the 2 programs above. The borrower can borrow up to $5,000 to use towards closing costs.
To access any of these programs the borrower should:
1- Create an online account at hdfconnects.org/fthb.
2- Upload the initial assessment documents on the customer portal
3- Make an appoint with an HDF homebuyer counselor to determine if you are mortgage ready and qualify for the HDF products
4- Take a mandatory 8 hour FREE homebuyer education class through HDF.