Homebuyer Mortgage Program
Mortgage Program Interest Rates
Currently, the Homebuyer Mortgage
Program is providing mortgages at the
- Government Insured Interest Rate: 3.375%** (APR range 3.475 - 3.875%)
- Non-Government Insured Interest Rate: 3.625%**(APR range 3.725% - 4.125%)
- Fees: Additional fees may apply.
- Term: 30 years, fixed rate
** Please note, this rate is subject
to change and additional fees may apply.
apply for a Homebuyer Mortgage Program
Primarily, the Homebuyer Mortgage
Program is intended to benefit
first-time homebuyers that meet
minimum credit, income, and
employment standards. People who
have owned homes before may also
qualify for a loan under this
program if they plan to purchase a
home located in one of 18 designated
areas in Connecticut targeted for
types of property can you purchase
with a Homebuyer Mortgage Program
The Homebuyer Mortgage Program
requires that loan applicants
purchase homes that meet specific
property and sales price
- 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
In addition, the property
must meet one of the definitions
- Existing and new
townhouses and Planned Unit
- Newly constructed homes
that meet FHA’s energy
efficiency standards (Ask
your Participating Lender
for more information.)
- Condominiums listed on
FHA's Approved Condominium
- Two- to four-family
homes that have been used as
residences for the past five
years or newly constructed,
two-family homes in a
- Mobile homes that meet
- 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 Homebuyer Mortgage loan?
The following additional considerations
and restrictions apply to Homebuyer
Mortgage 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, assistance is available statewide for qualified borrowers through the
Downpayment Assistance Program (DAP).
- Mortgage insurance may be
Federal mortgage insurance is
required under most CHFA loan
programs. The borrower's
loan must be
insured either through the
Federal Housing Administration (FHA), the
Veterans Administration, or
USDA Rural Development.
When utilizing the
Loan Program, private
mortgage insurance is allowed.
No mortgage insurance is
required when a borrower makes a
down payment of at least 20% of
the total purchase price.
- 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
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.
How do you apply for a Homebuyer Mortgage loan?
To apply for a Homebuyer Mortgage
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
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
Attn: Single Family Underwriting
999 West Street
Rocky Hill, CT 06067-4005
The following documents are
related to the Homebuyer Mortgage
Program. To open and view the
document, click on the document
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