The Connecticut Housing Finance Authority (CHFA) supports first-time homebuyers with a down payment for their dream home through the Down Payment Assistance Program (DAP) Loan. Connecticut residents who wish to explore more about this program and purchase their house can read the article.
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Down Payment Assistance Program
The CHFA is a state-funded quasi-public organization that works to reduce the housing shortage for low-moderate-income families in the State. The 169 Connecticut US state towns residents have purchased their first house via CHFA below-market mortgage interest rate and assistance.
The CHFA has made housing affordable for Connecticut residents through its various efforts. The authority understands that many households don’t buy their first home due to not saving enough for the down payment and started the DAP loan assistance for such aspiring homeowners.
The authority presents this opportunity to Connecticut residents who have monthly income to pay the mortgage payments of the house but have not saved enough for the upfront costs to get a low-interest loan and buy their own house in Connecticut.
Many employers also offer assistance in house buying to their employees, so you can also inquire about it, however, if you don’t have any way to get such grants and assistance the CHFA assistance is always there for you to make your dream come true.
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CHFA Down Payment Assistance Program Eligibility
The Connecticut residents who wish to purchase their first-ever house and pay the down payment and closing costs via CHFA DAP loans can check their eligibility to apply for the loan from below:
You must first apply for the CHFA mortgage from a CHFA participating lender as per your location and qualify to apply for the CHFA DAP loan.
You must show your capability to repay the CHFA first mortgage and DAP loan to receive financial assistance
Your loan amount must be equal to 4% of the appraisal value or sales price depending on whichever is less.
There are other additional considerations that you must be aware of before applying for the GHFA down payment assistance program:
Your CHFA DAP loan should be at least $3000 but not exceeding the value of your down payment required to purchase your first home. Usually, the down payment is around 3% and 3.50% of the sales price. Your lender coordinates with you to determine your down payment for the house you are buying and verify your capability to cover both the DAP loan and your first mortgage.
CHFA requires the applicant to attend the Homebuyer education class free of cost to understand the dynamics of buying a house and maintaining a house. The classes are available online or at various locations in the Connecticut US state.
Benefits of the CHFA Down Payment Assistance Program
The CHFA DAP loan program offers the following benefits that make housing affordable for various low and moderate-income families in Connecticut:
Under the program, the borrower gets the much-needed financial assistance to pay the upfront cost and closing cost to close the deal and get house ownership of their first-ever house.
The authority offers financial assistance to purchase their first home of up to $15,000.
The borrowers would receive the DAP loan at a low interest rate of 5% for 5.10% to 5.50% APR or the interest rate effective with the first mortgage depending on whichever is less to provide enough financial relief to the borrowers in the price they will pay for borrowing money.
CHFA offers 30-year fixed-rate mortgages which are quite lower than the market rates to make housing affordable for Connecticut residents.
How to apply for the CHFA Down Payment Assistance Program?
Now, Connecticut residents who wish to apply for this financial assistance and buy their first home can contact the nearby CHFA participating lender. The residents can find the contact details of their nearby CHFA lenders on the official website of the CHFA at https://www.chfa.org/
CHFA has collaborated with more than 70 mortgage companies and banks across the State to make it convenient for residents to access assistance and receive competitive loans at lower interest rates to qualifying first-time home buyers.
The Connecticut residents can also inquire about the down payment assistance in the Department of Economic and Community Development of their city and town because many cities and towns offer assistance to their residents to promote community development in their area.
THE CHFA offers many other assistance, renovation programs, mortgage programs, and so on for everyone living in Connecticut and presents them with an opportunity to live in their home with their loved ones.
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