HARTFORD — Governor Ned Lamont announced the launch of Time to Own, a new state program providing down payment assistance to low- and middle-income homebuyers in Connecticut.
Now accepting applications, the program provides a new source of funds for down payment and closing costs for applicants applying to the Connecticut Housing Finance Authority’s First-Time Home Buyer Program. Administered by CHFA on behalf of the state Department of Housing, it is funded by $20 million that was allocated for homebuyer assistance by the State Bond Commission in December.
“We all know that one of the biggest hurdles to home ownership is having a down payment and covering closing costs,” Governor Lamont said. “This program breaks new ground by offering homebuyers the opportunity to secure their first home through an innovative, repayable loan program. It will bring the dream of home ownership to life for thousands of Connecticutans. »
The Time to Own program is available to eligible applicants who obtain a CHFA first mortgage to purchase a first home. Applicants can also access CHFA’s existing down payment assistance program at the same time.
The Time to Own loan is structured as a 10-year, 0% amortization loan, with one-tenth of the principal amount canceled on the anniversary date of loan closing each year until the loan is fully forgiven.
The loan is based on several eligibility requirements, including the borrower’s financial need, ability to repay mortgage obligations, and eligibility for CHFA’s homeownership program, which is open to first-time buyers or to those who have not owned a home in the last three years.
The program is open to any borrower who can demonstrate Connecticut residency within the past three years.
As a key part of the program, Time to Own provides additional financial assistance to homeowners looking to buy homes in higher resource communities, where home prices are often out of reach for first-time buyers.
These higher-resource communities, called higher-opportunity areas in the Connecticut Opportunity Map, are rated based on academic performance, access to job opportunities, and other community resources. If a property is in a high or very high opportunity area, the borrower may be eligible for assistance of up to $50,000. For any other property, the loan amount can be up to $25,000.
“Time to Own puts greater buying power in the hands of potential buyers,” said Nandini Natarajan, CEO and Executive Director of CHFA. “The program not only gives them the means to buy their first home, but it also gives them greater choice about where they and their families will grow and prosper.”
Homebuyers can learn more about the Time to Own Down Payment Assistance Program by visiting www.chfa.org/TimeToOwn or by calling the CHFA Homeowner Helpline at 1-844-CT1-HOME (1-844-281-4663).