If you are buying a home in the area and don't have a lot of extra cash, be sure to look into a State of Connecticut program called Downpayment Assistance Program (DAP).
This program will lend you the money needed for closing costs, prepaid items and down payment for the purchase of your first home. The primary guideline of the program is that you have less than $10,000.00 in available assets. The assets reviewed include savings, checking, money market funds, certificate of deposits, stocks and bonds. A new difference is that retirement funds are no longer included in that total (such as 401-k, 403-B and 457 plans). If you have more than $10,000.00 available in all of these accounts, then you can protect the $10,000.00 but any additional monies will have to be used towards the purchase of the home. Another good change is that they only use the buyer on the mortgage’s assets and income, with respect to the $10,000 asset limit and the CHFA Income Limits (not the whole household’s income anymore).
The DAP is offered at the same rate as CHFA, currently around 3.5% for a 30 year fixed rate mortgage and lower if you are in or have been in the military.
If you don't have a lot of extra money, DAP may be the route to go to help your buyer purchase their first home. Do you think this is a good change?
Have a great Tuesday.
