Rocky Hill, Conn., August 1, 2016 – The Connecticut Housing Finance Authority (CHFA) plans to offer $185 million in bonds in August due to increasing demand from qualified homebuyers. On August 3, 2016, $145 Million in Fixed Rate Bonds will be sold, and $40 Million in Variable Rate Bonds are scheduled for sale on August 24. Proceeds from the sale will be used to finance about 750 single-family mortgages and refund prior bonds to take advantage of the low interest rate environment. CHFA offers numerous mortgage options including a zero point mortgage and a down payment assistance loan for low- to moderate-income borrowers purchasing their first home, or borrowers who have not owned a home in the last three years.
“CHFA’s current interest rate is near a historic low, and it’s fueling interest among first-time homebuyers. The Authority has already financed nearly 1,500 mortgages for Connecticut homebuyers this year, an investment of more than $243 million in housing. These are numbers we haven’t seen since 2007,” said Karl Kilduff, Executive Director. The current below-market interest rates on CHFA mortgages for first-time homebuyers range from 2. 75% percent to 3.125% percent (as of 07/29/16).
“As a self-funded, quasi-public agency, CHFA’s bond program acts not only as the vehicle for financing single family mortgages, but also plays a role as one of the state’s economic engines,” Kilduff added.
In addition to helping homebuyers realize their American dream, CHFA’s bonds provide an opportunity for Connecticut investors to purchase highly rated AAA/Aaa bonds for their personal portfolios and to invest in their communities and state.
Morgan Stanley is the lead underwriter. Kutak Rock LLP, Hawkins, Delafield & Wood LLP and Hardwick Law Firm LLC are acting as co-bond counsel. Lamont Financial Services Corporation is CHFA’s Financial Advisor.