fbpx
48 Meriden Rd, Suite 1, Middlefield, CT 06455
844.788.7237
info@northeast-mortgage.com

Down Payment Assistance and Low Down Payment Programs

Talk to one of our Mortgage Professionals about our Down Payment Assistance Options. 

Call us 7 days a week at 844.788.7237.

Having Trouble Viewing on Mobile?Download Our Free DPA Comparison  

NEF Logo


 

 

 

 

 

 

 

 

 

Click on any image or use the menu for more detail on each program.  If you need help please call us at 844.788.7237.  We are available 7 days a week and here to answer any questions you may have.

Housing Development Fund’s (HDF) SmartMove will help eligible first-time homebuyers in Connecticut overcome the obstacle of the 20% downpayment with a low-interest second mortgage.

What does it cover?

Up to 20% of the sales price in the form of a repayable 2nd mortgage.

Can you use this assistance to cover closing costs as well?

No

Min Buyer Contribution

1% in downpayment from the borrower’s own funds.

  • Closing costs do not count toward the 1% requirement
  • Cannot include gift funds

Max Seller Concession to help cover Closing Costs

6%

Min FICO

660

Debt to Income Limits
Housing Ratio / Total Expense Ratio

33 / 41

Borrower Eligibility

First-time homebuyers purchasing in CT service areas whose household income is at or below the respective income limits.

  • HDF’s definition of a first-time homebuyer is someone who has not owned a home in the last 3 years.
  • Additional guidelines will apply

Property Eligibility

Single family dwellings
2 – 4 unit dwellings
Condos
PUDs
Co-ops are not allowed

Max Mortgage Loan Amount for 1st Mortgage

Forgivable

No

Repayable

20-Year Term, Fixed Rate Mortgage (FRM)

Additional Considerations

Borrowers must have funds available for borrower contribution of at least 1% of the purchase price plus pre-closing costs, and emergency reserves.
Borrowers must have a steady work history for the past 2 years in the same industry.
Borrowers must be U.S. citizens, or permanent residents, or have unexpired visas and unexpired work permits.
See list of acceptable visas
No funds can be returned at closing.
Property inspections may not have health or safety hazards.

Disclaimer

This is detail is for informational purposes only. All guidelines are subject to change. All lenders have additional guidelines and criteria that must be met to qualify. All loans are subject to underwriting approval Please contact a Northeast Financial Loan officer to discuss your options and to determine your eligibility for this program.

Chenoa Fund is a national down payment assistance program provided through CBC Mortgage Agency. CBC Mortgage Agency’s mission is to increase nationwide affordable and sustainable homeownership, with a focus on creditworthy, low and moderate-income individuals.

What does it cover?

Up to 5% Down Payment Assistance in the form of forgivable or repayable 2nd mortgage.

Can you use this assistance to cover closing costs as well?

Yes – But often there will need to be some sellers concession given as well to cover all closing costs.

Min Buyer Contribution

0%

Max Seller Concession to help cover Closing Costs

6%

Min FICO

600

Debt to Income Limits
Housing Ratio / Total Expense Ratio

Per AUS
Ranging from
31 / 43
to
46.9 / 56.9

Borrower Eligibility

In order to qualify for Chenoa Fund™ DPA for FHA loans, the borrower must qualify for an FHA loan and meet Chenoa Fund’s minimal product overlays, which include a minimum credit score of 600.

Property Eligibility

Single Family Residence (includes modular)
1-2 Unit
HUD Approved Condos
PUDs Attached and Detached
One of the borrowers must occupy the property as their primary residence. All other FHA Guidelines apply

FHA Condo Search

https://entp.hud.gov/idapp/html/condlook.cfm

Max Mortgage Loan Amount for 1st Mortgage

Follow FHA Loan Level Limits (HUD.GOV Link)
https://entp.hud.gov/idapp/html/hicostlook.cfm

Forgivable

This loan has a 30-year term with an interest rate of 0% (0% APR). This loan does not require a monthly payment on the second mortgage. Forgiveness is determined by the DPA amount:

  • 3.5%: Forgivable after 36 consecutive, on-time payments on the FHA first mortgage. This forgiveness period resets if the borrower makes a late payment, but the borrower has the full 30-year term to meet the forgiveness conditions. This loan may also be forgiven at the end of the 30-year term if the previous forgiveness condition has not been met.
  • 5%: Forgivable after the initial 120 consecutive, on-time payments on the FHA first mortgage. This forgiveness period is terminated if the borrower has a payment that is 60+ days late, but the loan will remain with a 30-year term, 0% interest rate (0% APR), and no monthly payment.

Repayable

This 2nd mortgage loan has a 10-year term with an interest rate 2% higher than the interest rate on the FHA first mortgage.

Additional Considerations

Additional Guidelines May Apply

Disclaimer

This is detail is for informational purposes only. All guidelines are subject to change. All lenders have additional guidelines and criteria that must be met to qualify. All loans are subject to underwriting approval Please contact a Northeast Financial Loan officer to discuss your options and to determine your eligibility for this program.

USDA is a great program for borrowers in rural areas with up to 100% financing.

What does it cover?

One loan financing up to 100% of the property appraised value

Can you use this assistance to cover closing costs as well?

Yes as long as the home appraises for more than the agreed purchase price

Min Buyer Contribution

0%

Max Seller Concession to help cover Closing Costs

6%

Min FICO

640

Debt to Income Limits
Housing Ratio / Total Expense Ratio

Per AUS
Ranging from
29 / 41
to
34 / 46

Borrower Eligibility

US Citizens qualified Permanent Resident Aliens, and qualified Non-Permanent Resident Aliens are eligible with supporting documentation.
Foreign Nationals, borrowers with temporary residency status, and borrowers with diplomatic immunity are not eligible.

Applicants must meet income eligibility for a direct loan.

https://eligibility.sc.egov.usda.gov/eligibility/incomeEligibilityAction.do?pageAction=state

Property Eligibility

To determine if a property is located in an eligible USDA area, visit
http://eligibility.sc.egov.usda.gov

All dwellings must provide decent, safe, and sanitary at a modest cost (a dwelling with a purchase price not exceeding the FHA Single Family mortgage limit for its county is considered modest), Owner Occupied Only. 1 Unit, PUD’s, Condos, Manufactured Homes that meet all RD requirements (See Manufactured Homes section below), Modular Homes, and Leaseholds. Hawaiian properties are permitted in Lava Zones 3 through 9 with valid homeowner’s insurance coverage.

Max Mortgage Loan Amount for 1st Mortgage

Forgivable

No

Repayable

30yr Fixed Rate Mortgage

Additional Considerations

Additional Guidelines May Apply

Disclaimer

This is detail is for informational purposes only. All guidelines are subject to change. All lenders have additional guidelines and criteria that must be met to qualify. All loans are subject to underwriting approval Please contact a Northeast Financial Loan officer to discuss your options and to determine your eligibility for this program.

VA home financing to those who serve and have served our country, VA are specifically designed with exclusive Veterans benefits for Veterans, Active members, and spouses of those who have served.

What does it cover?

One loan 100% Financing based on the lower of appraised value or purchase price

Can you use this assistance to cover closing costs as well?

No

Min Buyer Contribution

0%

Max Seller Concession to help cover Closing Costs

4%

Min FICO

580

Debt to Income Limits
Housing Ratio / Total Expense Ratio

Per AUS

Borrower Eligibility

Qualified Veterans and Surviving Spouses that meet the minimum requirements

Learn more here:

https://www.va.gov/housing-assistance/home-loans/eligibility/

Property Eligibility

1-4 unit primary residence
Manufactured home
VA Approved Condos
PUD’s

VA Condo Search:

https://lgy.va.gov/lgyhub/condo-report

Max Mortgage Loan Amount for 1st Mortgage

No Published Max

Forgivable

No

Repayable

30yr Fixed Rate Mortgage

Additional Considerations

Additional Guidelines May Apply

Disclaimer

This is detail is for informational purposes only. All guidelines are subject to change. All lenders have additional guidelines and criteria that must be met to qualify. All loans are subject to underwriting approval Please contact a Northeast Financial Loan officer to discuss your options and to determine your eligibility for this program.

DPA Advantage is designed to provide down payment assistance in the form of a grant equal to 2% or 3.5% of the home price on an eligible FHA purchase.

What does it cover?

2% or 3.5% Down Payment Assistance in the form of a gift grant

Can you use this assistance to cover closing costs as well?

No

Min Buyer Contribution

0%

Max Seller Concession to help cover Closing Costs

6%

Min FICO

620

Debt to Income Limits
Housing Ratio / Total Expense Ratio

Per AUS
Ranging from
31 / 43
to
46.9 / 56.9

Borrower Eligibility

An eligible borrower can meet one of the following:
Is equal to or less than 140% of the state or county median income
https://ami-lookup-tool.fanniemae.com/amilook-uptool/

First responders (police officer, firefighter, public safety officer, paramedic, emergency medical technician (EMT), including volunteers, or similar), Educators, Medical personnel (nurse, doctor, phlebotomist, health ambassador, or hospital, American Red Cross worker, or similar), Civil servant in a federal, state, or local municipality, Military personnel, First-Time home buyer,
or
Subject property is located in an underserved census tract

Underserved Census Tract
https://www.afrcorp.com/zip-code-lookup/

Property Eligibility

1-4 unit primary residence
Manufactured home
FHA Approved Condos
PUD’s

FHA Condo Search

https://entp.hud.gov/idapp/html/condlook.cfm

Max Mortgage Loan Amount for 1st Mortgage

Follow FHA Loan Level Limits (HUD.GOV Link)
https://entp.hud.gov/idapp/html/hicostlook.cfm

Forgivable

Yes – This Down Payment assistance comes in the form of a Grant

Repayable

No – Only the First Mortgage is repayable. The down payment assistance comes in the form of a Grant.

Additional Considerations

Additional Guidelines May Apply

Disclaimer

This is detail is for informational purposes only. All guidelines are subject to change. All lenders have additional guidelines and criteria that must be met to qualify. All loans are subject to underwriting approval Please contact a Northeast Financial Loan officer to discuss your options and to determine your eligibility for this program.

Empowered DPA is designed to provide down payment assistance in the form of a grant equal to 2% or 3.5% of the home price on an eligible FHA purchase.

What does it cover?

2% or 3.5% Down Payment Assistance in the form of a gift grant

Can you use this assistance to cover closing costs as well?

No

Min Buyer Contribution

0%

Max Seller Concession to help cover Closing Costs

6%

Min FICO

620

Debt to Income Limits
Housing Ratio / Total Expense Ratio

48.99 / 48.99

Borrower Eligibility

Must meet 1 of 3 options:

  1. First-time home buyer
  2. Equal to or less than 140% of medium household income limits,
    1. https://ami-lookup-tool.fanniemae.com/amilook-uptool/
  3. Must be current/retired employment or volunteered/non-paid member

Non-occupant co-borrower’s are allowed. Only the occupying borrower must meet the eligibility requirements for the DPA. Follow FHA guides

Property Eligibility

1-2 unit primary residence
Manufactured home
FHA Approved Condos
PUD’s

FHA Condo Search

https://entp.hud.gov/idapp/html/condlook.cfm

Max Mortgage Loan Amount for 1st Mortgage

Follow FHA Loan Level Limits (HUD.GOV Link)
https://entp.hud.gov/idapp/html/hicostlook.cfm

Forgivable

Yes – This Down Payment assistance comes in the form of a Grant

Repayable

No – Only the First Mortgage is repayable. The down payment assistance comes in the form of a Grant.

Additional Considerations

Additional Guidelines May Apply

Disclaimer

This is detail is for informational purposes only. All guidelines are subject to change. All lenders have additional guidelines and criteria that must be met to qualify. All loans are subject to underwriting approval Please contact a Northeast Financial Loan officer to discuss your options and to determine your eligibility for this program.

Down Payment Assistance for FHA Borrowers

What does it cover?

3.5% of Sales Price or Appraised Value (lessor of) in the form of a repayable 2nd mortgage

Can you use this assistance to cover closing costs as well?

No

Min Buyer Contribution

0%

Max Seller Concession to help cover Closing Costs

6%

Min FICO

600

Debt to Income Limits
Housing Ratio / Total Expense Ratio

Per AUS
Ranging from
31 / 43
to
46.9 / 56.9

Borrower Eligibility

Eligible Borrowers: Must have legal residency and valid Social Security Number US Citizens, Permanent Residents and Non-Permanent Resident Aliens (DACA allowed) Inter-Vivos Revocable Trusts
All borrowers must have a credit score

Income Limits:

Up to 160% of SMI or AMI, whichever is greater

Exceptions over 160% will be granted with comment by the Underwriter on the 92900-LT

Underwriter must notate borrower’s income % compared to income limit on Form 92900LT per

Use Individual Median Family Income

Search by State and County in which the property is located

https://www.huduser.gov/portal/datasets/il.html

Property Eligibility

1-2 unit primary residence
Manufactured home
FHA Approved Condos
PUD’s

FHA Condo Search

https://entp.hud.gov/idapp/html/condlook.cfm

Max Mortgage Loan Amount for 1st Mortgage

Follow FHA Loan Level Limits (HUD.GOV Link)
https://entp.hud.gov/idapp/html/hicostlook.cfm

Forgivable

No

Repayable

This 2nd mortgage loan has a 10-year term with an interest rate 2% higher than the interest rate on the FHA first mortgage.

Additional Considerations

Additional Guidelines May Apply

Disclaimer

This is detail is for informational purposes only. All guidelines are subject to change. All lenders have additional guidelines and criteria that must be met to qualify. All loans are subject to underwriting approval Please contact a Northeast Financial Loan officer to discuss your options and to determine your eligibility for this program.

The $100 Down Program was developed to help turn foreclosed HUD REO homes into owner-occupied residences. The program covers one to four unit residential properties and waives the usual 3.5% down payment requirement. Borrowers are only required to make a $100 minimum down payment.

What does it cover?

One loan financing of purchase price leaving only $100 for down payment

Can you use this assistance to cover closing costs as well?

No

Min Buyer Contribution

$100

Max Seller Concession to help cover Closing Costs

6%

Min FICO

580

Debt to Income Limits
Housing Ratio / Total Expense Ratio

Per AUS
Ranging from
31 / 43
to
46.9 / 56.9

Borrower Eligibility

Eligible Borrowers: Must have legal residency and valid Social Security Number US Citizens, Permanent Residents and Non Permanent Resident Aliens (DACA allowed) Inter-Vivos Revocable Trusts
All borrowers must have a credit score

Property Eligibility

1-4 unit primary residence
Manufactured home
FHA Approved Condos
PUD’s

FHA Condo Search

https://entp.hud.gov/idapp/html/condlook.cfm

Max Mortgage Loan Amount for 1st Mortgage

Follow FHA Loan Level Limits (HUD.GOV Link)
https://entp.hud.gov/idapp/html/hicostlook.cfm

Forgivable

No

Repayable

10, 15, 20, 25, and 30yr Fixed

Additional Considerations

IMPORTANT REMINDER: The sales contract (form HUD-9548) will establish the eligibility for $100 down and purchase price. $100 DOWN PROGRAM

Additional Guidelines May Apply

Disclaimer

This is detail is for informational purposes only. All guidelines are subject to change. All lenders have additional guidelines and criteria that must be met to qualify. All loans are subject to underwriting approval Please contact a Northeast Financial Loan officer to discuss your options and to determine your eligibility for this program.