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CHFA OFFERS 0 PERCENT DOWNPAYMENT ASSISTANCE LOANS FOR VETERANS
Popular Downpayment Assistance Program (DAP) expanded for Veterans
|Date Posted: ||Wednesday, July 09, 2014|
Rocky Hill, Conn., – The Connecticut Housing Finance Authority (CHFA) is now offering a 0 percent Veterans’ Homeownership Pilot Program (VHPP) Loan to help veterans with down payment and/or closing costs on the purchase of their first home. The VHPP loan can be for up to $10,000 and the term of the VHPP loan is 30 years. The new VHPP loan program must be combined with a CHFA first mortgage, which provides a lower than market interest rate. When veterans use the two loans together, the savings can make it possible for a veteran to purchase a first home. Interest rates for CHFA mortgages are listed at www.chfa.org, and the current interest rates are 3.5 – 3.85 percent.
“Saving enough money for a downpayment and closing costs is the number one obstacle to homeownership, “said Eric Chatman, president and executive director of CHFA. The Authority has a Downpayment Assistance Program (DAP), which offers loans that can be used to fund some of the cost of the downpayment and or closing costs. CHFA DAP loans have helped thousands of state residents purchase their first home. “Now, CHFA has created a DAP loan specifically for Veterans at 0 percent interest, as a way to thank them for their service and help them achieve the American dream of homeownership,” Chatman added.
Funding for The Veterans Homeownership Pilot Program is limited to $1 million and will be awarded on a first-come-first-served basis. The program is open to Veterans who served in any branch of the U.S. Military, (including the National Guard or Reserves) and have received anything other than a dishonorable discharge. The VHPP loan is a second mortgage and borrowers must have sufficient income to repay both the CHFA 1st and 2nd mortgage loans. CHFA’s regular income limits and sales price limits apply to these loans and borrowers must take a three-hour homebuyer education class before closing on the loan.
Veterans can apply for a CHFA mortgage and VHPP loan through more than 110 participating lenders in Connecticut. More information is available at www.chfa.org.
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