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The HomeFirst Down Payment Assistance Program offers up to $100,000 to qualified homebuyers who are purchasing a home in one of the five boroughs of New York City. These funds can be used to cover the down payment or closing costs on a one- to four-family home, condominium, or cooperative. The city’s Stamford HOME program is administered by Housing Development Fund, Inc. And eligible applicants can get an interest-free loan of up to $20,000 toward their down payment and closing costs.
First-time homebuyers in Connecticut may be able to take advantage of attractive home loan and down payment assistance options. Those who don’t fit within the parameters can look for mortgage opportunities on their own. Lenders will also calculate your debt/income ratio, which is the ratio of any ongoing monthly payments that extend beyond 11 months into the future to your total income. If the ratio exceeds what lenders consider a safe limit, they will reduce the amount they offer. One of the biggest determinants of interest rates, or even getting a loan at all, is a borrower’s credit score.
Federal Programs for First-Time Homebuyers
First-time home buyer programs are mortgage loans and incentives that widen the pool of eligible US home buyers, sponsored by federal, state, and local governments. Your employment status will also be reviewed, as this gives the lender some level of comfort that you will continue to receive regular paychecks. This verified amount of income and all other recurring streams of income may be considered for your debt-to-income ratio. The debts will generally be the minimum monthly payments on your credit report, but expenses like child support, alimony, and others may also be included. Whether you take advantage of one of these benefits or string multiple benefits together, you may be able to save thousands of dollars on the purchase of your first home. The specific benefits and perks available to you may vary based on your location and your specific first-time homebuyer loan qualifications.

A real estate attorney will explain all the fine print and make sure that you are legally protected in any transactions. His or her advice will be especially valuable during the mortgage closing when you will have to read and sign a stack of documents. The first step in the grant process is getting pre-approved. Let our expert team guide you through the process of getting a custom loan that saves you money. According to the CFPB, the typical first-time home buyer puts down just five percent. House and Senate introduced eight separate bills since 2021 to make homeownership easier to attain for renters and to make the American Dream more affordable.
What Is a First-Time Home Buyer Grant?
Due to its modern small-town vibe and proximity to New York, real estate in Stamford tends to be more expensive than the rest of Connecticut. Median home prices in Connecticut’s biggest cities vary enormously. But its home price inflation during the 12 months ending in April 2022 was much lower than in the other two. Also note that CHFA is not the only down payment assistance in town. The key is to shop around and explore all your mortgage options. Provided you are considered a first-time buyer, here are the main benefits you might receive, depending on your situation.

The program “aids low-and moderate-income home buyers” by providing them with a forgivable loan to cover their down payment and closing cost needs. And because the loan is forgivable, you don’t make monthly payments. Below, you’ll find a list of organizations providing help for first-time home buyers in individual cities and counties across Connecticut. Because they may offer a down payment assistance program that suits you better than the statewide option. First-time home buyers with a 20% down payment in the state of Connecticut can get a conventional loan with a low interest rate.
First-Time Homebuyer Programs in Connecticut
Some programs have an alternate definition for a first-generation home buyer. You are a first-time home buyer because the mobile home you owned was not permanently affixed to a permanent foundation. Whether you are a first-time home buyer in this scenario depends on your mortgage type. Whether buying your first home – or buying your first home in more than three years – it’s good to know your options and how to maximize how much home you can afford. A first-time home buyer is a home buyer who hasn’t owned the home they’ve lived in within the most recent three years.

First-time buyers also get discounted interest rates on HomeReady and Home Possible from Fannie Mae and Freddie Mac, respectively. First-time buyers can also take advantage of down payment assistance programs. These programs allow you to take out a second mortgage to cover your down payment costs, but they can reduce the amount of cash you need upfront. HUD home loan programs have additional requirements with regard to credit scores, income, and the property being purchased. These requirements can vary quite a bit depending on which type of home loan you use. And if you apply for down payment assistance, those programs will have their own guidelines.
I owned a mobile home previously.
That’s a long time to wait to buy a home – especially because, over seven-year blocks, home values have always gone up. I’ve been renting somewhere else for more than three years. Each post is edited and fact-checked by industry experts to ensure that we are providing accurate information for our readers.
Your closest HUD-approved housing counseling agency is a call or click away. The latest real estate investing content delivered straight to your inbox. Let us know in the comments which piece of advice you found most helpful. Be smart when it comes to your FHA loan and your financial future.
And some individual lenders may want higher FICO scores than those minimums. But, on the whole, the perks of these loans are open to any home buyer. That means you can likely find a low-down-payment loan or one with lower credit requirements, even if you don’t qualify as a first-time home buyer. Who wants to be saddled with a home loan amount they can’t afford? The application process will ensure you’re getting a house within your means and a reasonable monthly mortgage payment. Borrowers can finance the down payment and closing costs with a DAP loan.
Rebecca Lake has over a decade of experience researching and writing hundreds of articles on retirement, investing, budgeting, banking, loans, and more. She has been published by well-known finance brands including SoFi, Forbes, Chime, CreditCards.com, Investopedia, SmartAsset, Nerdwallet, Credit Sesame, LendingTree, and more. All the organizations we’ve listed above should provide advice freely to any first-time home buyer in Connecticut or their local area. However, you must repay that in full when you sell the home, refinance your first mortgage, transfer the title, or finish paying off that main mortgage.
Like the Freddie Mac program, HomeReady loans allow flexibility for down payment financing, such as gifts and grants. Several federal government programs are designed for people who have low credit scores or limited cash for a down payment. First-time home buyers can choose from four conventional low-down-payment loans via Fannie Mae and Freddie Mac. Each allows a 3% down payment for buyers with average or below credit score requirements.

Home Possible is limited to low- and moderate-income households and buyers with average credit scores or better. Both are mainly available to Connecticut first-time home buyers, including those who haven’t owned a home within the previous three years. However, someone buying in a targeted area may be in line for help even if they’re not a first-time buyer. Note that government loan programs require you to buy a primary residence.