Pilot Homeownership and Downpayment Assistance Program for Specified Areas of Manchester

(Available as of June 1, 2007)

This program is now available to assist first-time homebuyers looking to purchase a home in one of the specified targeted areas of Manchester.

Eligibility:

Eligible borrowers are first-time buyers (or prior homeowners who have not owned a home in the past 3 years) and must meet regular guidelines under CHFA’s Homebuyer Mortgage Programs.

These loans will be offered through:

Freedom Mortgage:                                         McCue Mortgage Company:
Peter Sulick 860.529.9878                              Kathy Richters 800.382.0017 x523 or
peter.sulick@freedommortgage.com           kathyr@mccuemortgage.com                                                                                                   OR
                                                                              Ken Snelgrove 860-394-9447 or
                                                                               kens@mccuemortgage.com

Eligible borrowers must be purchasing a home in specified areas of Manchester. These areas are identified as census tract numbers: 5146, 5147 and 5148 which include the areas known as the Eastside and Westside neighborhoods, and the central business district. click here to view a map of eligible areas

Click here to link to the census bureau to see if the property you are interested in falls under any of the above listed census tract numbers.

Loan Program:

Eligible individuals or families will get a reduced first mortgage interest rate which will be ¼% below CHFA’s regular Homebuyer Mortgage Program rate (click here for the current interest rate) and a forgivable loan to assist with the downpayment and closing costs associated with the purchase of a single-family dwelling, a condominium unit, or a multifamily dwelling consisting of not more than four units.

Zero interest (0%) downpayment loans will be available on a first-come, first-serve basis until funding is exhausted. This loan cannot exceed 3.5% of the cost of acquiring the dwelling and can also include related closing costs up to a total maximum loan of $10,000.

The 0% interest downpayment loan is forgiven at 20% per year over a five-year period. If the borrower sells or refinances the home before five years of ownership, the remaining balance of the forgivable loan is to be repaid to CHFA. If additional funds are needed for downpayment or closing costs, those funds may be borrowed through CHFA’s regular Downpayment Assistance Loan Program, which will carry the same interest rate as the first mortgage.

Income/Sales Price Limits:

Individuals and families must be first-time homebuyers and have an annual household income which falls under the parameters of CHFA’s Homebuyer Mortgage Program guidelines for Manchester. Income must not exceed $81,000 for a 1-2 person household and may not exceed $93,150 for a 3 or more person household. Sales price limits cannot exceed $301,500, which is the limit currently set for Manchester under the CHFA Homebuyer Mortgage Program.

Homebuyer Education:

Borrowers will be required to attend an 8-hour Homebuyer Education Class before they can close on their loan. These classes are free of charge. Your lender will direct you to contact a counseling agency to schedule yourself for a class.

CHFA Contact Information:

Single Family Underwriting
(860) 571-3502
E-mail: singlefamilyunderwriting@chfa.org