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Connecticut Mortgage: How do get 100% Home Financing

Northeast Financial is a Connecticut Mortgage Company (we are located right here in Connecticut) that offers many programs for home buyers in our state.  Even better, we will come out in person and meet with you – we believe in putting a handshake to every person we work with.

One of our favorite types of loan is a USDA mortgage. This type of loan is guaranteed by the United States Department of Agriculture and allows an individual to borrow up to 100 percent of the purchase price or the appraised value of the home. To qualify for this type of loan, the subject property must be in an area they deem “eligible” (call me for details) and there are some income limits to be met. The property must also be the borrower’s primary residence and must have a minimum FICO of 640.

Another type of loan is a VA (Veteran)  mortgage, which is a loan insured by the Department of Veteran Affairs. This type of loan is for anyone that has served in the armed forces or the reserves and allows for up to 100% financing. Unlike USDA loans, subject properties do not have to be in an eligible area and there are no income limits. To qualify for this loan, a borrower must obtain a Certificate of Eligibility (call me for details) and also must have a minimum FICO of 620.

The next type of loan is CHFA, which is a loan offered by the Connecticut Housing Finance Authority. This type of loan is designed for all first-time homebuyers living in the state of Connecticut. Residents who have not owned a home in the last 3 years also qualify. Unlike USDA and VA loans, CHFA is broken up in a first mortgage and a second down payment assistance loan. For example, the first mortgage would be for 96.5% and the second loan would be for 3.5%, which equals 100%. To qualify for this loan there are some income limits to be met and the borrower must have a minimum FICO of 660.

Another option is a FHA Mortgage.  FHA mortgages have more lenient credit score requirements and allow for your mid score to be 580 or better in most cases.  FHA Mortgages require 3.5% Down – but the great news is that this down payment can be given to you as a gift from a family member.  This in turn allows for 100% financing.  We also have a 1% Down Conventional Mortgage program that allows for that 1% to be gifted to you from a family member.

So as you can see – there are options for 100% financing available to Connecticut residents.  It is important to remember when buying a house to ask for a seller’s concession or a lender credit to help pay for your closing costs (property taxes, property insurance, title policy, and etc).

Call me today so that I can talk with you about your options.





Drew Raney/NMLS#117309
President of Northeast Financial
210 S. Main ST. Middletown, CT




Company NMLS#117273


Residential Clients Click Here For Our Online Application



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

Borrower contributes 1% down, lender contributes 2% down of the loan up to $5,000.00 for the down payment, and the borrower is responsible for any difference to get the required 3% down.  The principal and interest payment of a 200K 30 year Fixed Rate Loan at 4.375% and 97% loan to value is 998.57 with 0 points due at closing.  The annual percentage rate is 4.633%.  The principal and interest payment does not include property taxes and home insurance premiums, which can result in a higher actual monthly payment.  Rates current as of 06/20/2017