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First Time Home Buyer in Connecticut

Posted on October 25, 2016 · Posted in Connecticut First Time Mortgage

Mortgage Programs For First-Time Homebuyers


Hello everybody, this month is a great opportunity to talk about your goals for the rest of 2016 and the upcoming 2017 year and what you’d like to accomplish. For today’s article I would like to talk to you about one of the biggest decisions of your life – buying a home. Specifically I would like to talk to the first-time homebuyers and programs NorthEast Financial offers to get you into your dream home today!


The first program I would like to talk about is FHA. FHA stands for the Federal Housing Administration and is a program offered by the U.S. Government.  FHA Mortgages help low and moderate income homebuyers purchase homes with low down payments and flexible qualifying guidelines. These loans are insured by the Federal Housing Administration, which sets maximum loan limits that vary by area.


With an FHA mortgage, you can purchase a home with as little as 3.5% and can even use a gift or grant for your down payment and closing costs. FHA mortgages are available in fixed rate and adjustable rate mortgage options. This loan type can help you afford a bigger home with the least amount of cash compared to other loan programs. If you are considering this type of loan, however, you will have to pay upfront and monthly mortgage insurance premiums.


The second and third programs I would like to talk about are VA and USDA loans. VA loans are guaranteed by the Department of Veteran Affairs and USDA loans are guaranteed by the United Stated Department of Agriculture. Both of these loans require NO MONEY DOWN and are a great option for qualified first-time homebuyers.


To qualify for a VA loan, you must be a veteran, reservist, or active-duty personnel. To qualify for a USDA loan, you must live in one of the areas they deem eligible. Both of these types of loans are offered in fixed rates so your interest rate and monthly principal and interest payments remain the same for the life of your loan. You also will want a minimum FICO score of 620 or higher.


The fourth program I would like to tell you about is CHFA. CHFA stands for the Connecticut Housing Finance Authority and offers residents opportunities to purchase a home who may not qualify for other conventional mortgage programs. First-time homebuyers can take advantage of CHFA’s competitively low interest rates and low to no down payments. Police and teachers can qualify for a special discount rate with CHFA as well!



If you are a first-time homebuyer living in Connecticut, today is the perfect opportunity to buy a home. If you made a resolution to purchase a home, call me today to go over all your options.


johnv_picJohn Vecchitto / Loan Officer
NMLS# 1127163
210 S. Main St. First Floor
Middletown, CT 06457
860-918-0251 (Cell)
860-788-7237 (Office Phone)
Company NMLS 117273

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 owner’s insurance premiums, which will result in a higher actual monthly payment.  Rates current as of 6/26/17