No Money Down Loan Programs in Connecticut. Like many home buyers in Connecticut you may be wondering if it is possible to get a mortgage loan with little or no money for a down payment. There are programs available for home buyers in Connecticut which can allow a qualified buyer to get a loan with no down payment. So what are they?
CHFA - CHFA is the Connecticut Housing Finance Authority, they oversee the state 1st time home buyer mortgage program. CHFA are one of the no money down loan programs in Connecticut available to first time buyers, or those who have not owned their primary residence in the past 3 years. CHFA allows qualified borrowers to get a down payment assistance loan which can cover the down payment and closing costs. A CHFA loan can actually allow a borrower to finance more than the purchase price of the home. There are household income limits, and purchase price limits(you can look them up here).
VA - A VA (Veterans Administration) guaranteed home loan is the preferred loan program for active, non-active, Reserve, National Guard, and retired members of the armed forces. Eligible borrowers can finance 100% of the purchase price of their home, there is no monthly mortgage insurance, and they can be assumable. The VA guarantees the loan to the lender, they don't offer loans directly and also don't guarantee a borrower will qualify for a VA loan. VA loans are a great no money down loan loan program if you are an eligible Connecticut resident who is a past or present member of the armed forces.
USDA - USDA Rural Housing 504 guaranteed loan offers eligible borrowers up to 100% financing of homes they purchase in eligible areas. This program was created to help make mortgage money available in rural parts of the country, believe it or not much of Connecticut is considered eligible for a USDA loan, including towns like Avon! USDA Rural housing loans do not require you to be a first time buyer to be eligible, but you may not own any other real estate at the time you close. There are maximum household income guidelines to be eligible. A great feature of a USDA Rural housing loan is that there is no monthly mortgage insurance payment!
As you can see there are several no money down loan programs in Connecticut available. Let's talk about your situation and how we can help you to qualify for a no money down loan program to purchase a home in Connecticut.