ROCKY HILL, Conn., September 23, 2013 – Connecticut is among the 10 best states for first-time homebuyers, according to HSH.com, the nation's largest publisher of mortgage and consumer loan information. The 10 Best article was published on the MSN Real Estate website earlier this month.
HSH.com reviewed each state’s housing finance authority/corporation website and examined which statewide programs were specifically geared to first-time homebuyers. Then they reviewed to see which had the most diverse group of programs geared toward first-timers.
“Not only does the state of Connecticut have more than three statewide programs geared toward first-time homebuyers, the programs they offer run the gamut of nearly anything a first-time buyer would need help with. Whether that is needing assistance with a lower interest rate, help with a downpayment, or it’s a community stabilization effort which encourages first-time buyers to purchase distressed homes and fix them up, Connecticut offers it all,” said Timothy Manni, managing editor of HSH.com.
CHFA’s first-time homebuyer loan programs are eligible to borrowers purchasing their first home, or those who have not owned a home in the last three years. The interest rate is lower than market rate, and is currently 3.5% (as of 9/19/13). CHFA offers a Downpayment Assistance Program (DAP), a loan for qualified borrowers who do not have enough savings for the downpayment and closing costs.The DAP loan is a second mortgage, and requires that borrowers take a homebuyer education class before receiving the loan.
Eric Chatman, CHFA president and executive director welcomed the recognition for the first-time buyer mortgage programs. “We are seeing an increase in first-time homebuyers applying for mortgages and that’s very good news. First-time buyers are key to the housing market. As greater numbers of first-time buyers enter the market, current homeowners are moving up to their next home, creating a ripple effect throughout the economy.”
Chatman also noted that the HERO (Homeowner’s Equity Recovery Opportunity) program highlighted in the article provides loans for first time buyers purchasing foreclosed, distressed or short sale properties. These loans are often combined with renovation loans (known as 203K loans) to get these homes back into good shape, which also has a ripple effect by improving and stabilizing neighborhoods.
CHFA mortgages are available through a network of more than 90 lenders across the state. A list can be found at www.chfa.org
, along with CHFA’s First-time Homebuyer Guide.