Home of Your Own Program
Program Overview
The Home of Your Own (HOYO)
Program offers home loans at
below-market interest rates to
people with disabilities who wish to
purchase their first home. Previous
home owners might qualify for this
loan if they intend to purchase
property located in federally
targeted areas that would
benefit from an increase in
homeownership.
CHFA is committed to helping Connecticut residents achieve their dream of homeownership and values its partnership with the qualified lenders for this program.
Prospective borrowers may apply
directly for a HOYO Program loan at their local CHFA-approved participating bank or mortgage company. (See, list of
Participating Lenders near you.)
Follow the links below for more information regarding the
Homebuyer Mortgage Program.
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Home
of Your Own Program Interest Rates
Currently, the Home of Your Own
Program is providing mortgages at the
following rate:
- Interest rate: 2.750%** (APR range 2.85 - 3.25%)
- Fees: Up to One Point (1% Origination Fee) * Payable to Lender
- Term: 30 years, fixed rate
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** Please note, this rate is subject
to change and additional fees may apply.
Who can
apply for a Home of Your Own Program
loan?
First-time homebuyers with a
disability can apply for this
program. Applicants must provide
proof of their disability to their
lender. Disability can be
established, for example, with
documentation from a government
agency like the Social Security
Administration or the Department of
Mental Retardation.
Disabled persons who have owned a home previously may
also apply if they plan to purchase a home located in one of
18 designated areas in Connecticut targeted for
revitalization. (See,
Targeted Areas.)
- Who are considered first-time homebuyers?
First-time homebuyers are those who have never purchased
a home before or have not had an ownership interest in a
principal residence for the past three years.
- What are the income guidelines to qualify
for this loan?
Under the HOYO program, an applicant’s annual,
before-tax household income must not exceed $89,200 a
year for households of one or two occupants. It may not
exceed $102,580 a year for households of three or more
occupants. Household income is calculated by combining
the income of all people who will live in the home.
The CHFA
income limits do not apply for homes purchased in
targeted areas, unless the applicant also borrows a loan
under the
Downpayment Assistance Program.
What
types of property can you purchase
with a Home of Your Own Program
loan?
The Home of Your Own Program
requires that loan applicants
purchase homes that meet specific
property and sales price
guidelines.
- Property Guidelines:
In order to qualify for this program, the applicant must use the loan
to purchase a home in which he
or she will reside year-round.
The applicant may not use the
loan to purchase recreational,
vacation, investment, commercial
or rental properties. No part of
the purchased property may be
designed for commercial
purposes.
In addition, the property
must meet one of the definitions
listed below:
- Existing and new
single-family homes,
townhouses and Planned Unit
Developments
- Newly constructed homes
that meet FHA’s energy
efficiency standards (Ask
your Participating Lender
for more information.)
- Condominiums listed on
the
CHFA-approved Condominium
List
- Two- to four-family
homes that have been used as
residences for the past five
years or newly constructed,
two-family homes in a
Targeted Area
- Mobile homes that meet
FHA
guidelines.
- Sales Price Guidelines:
In order to qualify for this
program, the purchase price of a
home must not exceed the CHFA
sales price limit established
for the specific city or town in
the state where the property is
located. (See, the
CHFA sales price limits.)
What else should you know about
a Home of Your Own Program loan?
The following additional considerations
and restrictions apply to Home of
Your Own
Program loans.
- You may qualify for
help with your down payment and
closing costs.
For those who lack sufficient
funds to cover the upfront
expenses associated with
purchasing a home, CHFA offers
assistance to qualified
borrowers through the
Downpayment Assistance Program
(DAP).
Borrowers under the
Home of Your Own Program may
qualify for a reduced interest
rate on a DAP loan.
Please note: A
down payment of at least 3.5 %
of the purchase price of the
home is typically required by
the mortgage insurer.
- Mortgage insurance
may be required.
Federal mortgage insurance is
required under most CHFA loan
programs. The borrower must be
insured either through the
Federal Housing Administration (FHA), the
Veterans Administration, or
the
USDA Rural Development.
However, private mortgage
insurance is permitted when a
borrower makes a 15% down
payment on a home in a
targeted area and the
mortgage exceeds FHA loan limits
but is within the CHFA sales
price limits of that area. In
addition, there are targeted
CHFA mortgage programs that are
eligible for PMI insurance.
(Your Participating Lender can
provide more detailed
information on these programs.)
Please note:
No mortgage insurance is
required when a borrower makes a
down payment of at least 20% of
the total purchase price on a
newly constructed home in a
targeted area.
- You may be required
to pay a special federal tax if
you sell your home within nine
years.
Under rare circumstances, CHFA
mortgage loans may be subject to
the
Federal Recapture Tax at the
time the property is sold. The
tax might apply if a borrower
sells his or her home within
nine years of the purchase date,
makes a profit on the sale and
has an income that exceeds
federal recapture tax limits at
the time of the sale.
- You will need to
complete a homebuyer education
class.
Prospective borrowers under the
Home of Your Own Program are
required to attend a free
three-hour, homebuyer education
class prior to closing the loan.
Classes are held at several
locations in the state each
month. (See,
homebuyer education class
schedule.)
How do you apply for a
Home of Your Own Program loan?
To apply for a Home of Your Own
Program loan, a prospective borrower should contact one of CHFA’s Participating Lenders for guidance through the loan
application process.
Generally, the time from applying for
the loan to closing the sale of the property is six to eight
weeks.
Questions? Contact CHFA.
Prospective borrowers should
first contact their lender for
information on this loan program.
For additional assistance, borrowers
may contact CHFA’s single family
underwriting department.
Mailing Address:
CHFA
Attn: Single Family Underwriting
999 West Street
Rocky Hill, CT 06067-4005
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Additional Information
The following documents are
related to the Home of Your Own
Program. To open and view the
document, click on the document
title.
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