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Connecticut First Time Mortgage Options By Liz Welch

Hello everyone, I am a loan officer with North-East Financial in Middletown, Connecticut (we cover the entire state for your loan needs). Are you a resident in the state of Connecticut paying rent every month? Do you feel like you are paying too much? Today I would like to talk to you about all the programs that benefit the first time home buyer as well as an experienced buyer.

First off let me start by talking about the CHFA program for first time home buyers.


CHFA stands for the Connecticut Housing Finance Authority and is offered to all residents of Connecticut that have never owned a home before or haven’t owned a home in the last three years. CHFA offers two routes for residents to obtain a loan. One way is to put a minimum 3.5% down or the other way is to take advantage of the Down-Payment Assistance Program, which allows for 100% financing.


The next program that would be beneficial is FHA Home Purchase. This loan program requires you put 3.5% down and is a great resource for first time homebuyers.  It also allows the buyer to use more of there income to qualify for a bigger house. While offering a competitive interest rate.


Another great program offered for more rural areas of Connecticut would be the USDA product.  USDA Loans offer up to 100 percent financing.  This loan program covers most areas in the state of CT. The requirements for this loan is that the property you are buying most fall within the rural criteria set by the USDA. Most people do not realize that the USDA covers most areas in Connecticut and has a very low PMI charge.


Also included in the 100 percent financing category would be the VA (Veteran) loan program.  This program is offered for Military or ex military.  Some of the benefits of this product would be No mortgage insurance is required with very low rates.


Lastly, I would like to mention the NO PMI Home Loan program for your first time purchase. This loan will not allow you to borrow 100%, but it will allow you to borrow up to 95% and pay no PMI if you qualify. The rates on this type of loan are a bit higher than conventional rates but it allows for a lower monthly payment due to the lack of the monthly PMI.


So if you are tired of paying rent every month and wanting to own your home please give me a call. I would be more then happy to discuss all your options and help you pick the best one that suits you.


IMG_1722lizElizabeth Welch NMLS 1618684
Company NMLS 117273
210 South Main Street
Middletown CT 06457


FHA Disclosure


NMLS# 117273, Northeast Financial, 860-788-7237


The principal and interest payment on a 203,500 30 year FHA fixed rate loan at 3.25% on 96.5% loan to value is 1,025.99 with 0 points due at closing.  The APR is 4.491%.  Payments include a one time upfront mortgage insurance premium (MIP) at 1.75% of the base loan amount and monthly MIP is calculated at .85% of the base loan amount.  The .85% monthly MIP is required for a specific period of time regardless of your down payment or equity in your home. The principal, mortgage insurance, and interest payment does not include property taxes or home owners insurance premiums, which will result in a higher actual monthly payment.  Rates current as of 6/26/17