With the rates as low as they are, and home prices still relatively low in Litchfield County CT, perhaps you think it might be time to start looking for a house. And you are not quite sure where to start.
The first, most important step for you is to find out if you qualify for a mortgage and how much of a mortgage you qualify for.
There are a few things that are very important when looking for a lender.
- Do they offer a first time home buyer program?
- Do they help you get yourself on the right track if you have credit issues?
- Is there someone you can actually meet with?
- Do they have a good reputation? (Ask your real estate agent)
There are some really good programs out there that just might fit your situation. There are programs to help you with your down payment, there are programs that have really low rates but do have restrictions you might not be comfortable with, there are programs for 100% financing. Each program is different and not all lenders offer all of these programs.
Here are a few options to consider for first time home buyers in Litchfield County. Each program is different, the income limits vary from program to program, and certain programs have requirements that may make a more or less desirable for your situation.
Not all lenders participate in each of these programs. This means you have to do a bit of homework yourself to see which is the best fit for you then contact the appropriate lender. We do know who participates in the following programs, people we know and trust. Give us a call at 860.946.0686 if you want more information.
HDF has programs for down payments and closing costs as well as partnering with certain lenders for the mortgage. This is an awesome product, my daughter used it to buy her home. You will be assigned a counselor and will have to attend an orientation with them. They can even help you get any credit issues resolved to get you on your way to home ownership. All in all a very good product for those who meet the income limits, and Litchfield County is in their service area.
The United States Department of Agriculture has a great program for first time home buyers. There is 100% financing available as well as the ability to borrow up to 103% of the appraised value of the home. You do not have to be a first time home buyer to use this product, but it is a great fit for certain first time home buyers in certain parts of Litchfield County CT. To determine if the property you are eligible for go to their website and plug in the address.
The current interest rate for a CHFA (Connecticut Housing Finance Authority) is lower than the rest at 2.75%. There is one thing you need to know, if you sell your home within 9 years of the purchase you may be responsible to pay a recapture tax. You need to make sure you understand this completely before you decide this loan is for you. CHFA also offers down payment assistance through their DAP loans, as well as a partnership with the Housing Development Fund.
The federal government offers loan products for first time home buyers. You must be able to put down a deposit that is 3.5% of the purchase price. It also may be possible to include some of the closing costs into your loan. But you will need that down payment!
The Veterans Administration offers home loan guaranty programs to active duty service members, veterans and eligible surviving spouses. There is no down payment requirement as long as purchase price doesn’t exceed the appraised value. Also there is no private mortgage insurance on a VA loan.
I think the most important thing you must remember is not all lenders participate in these programs, so you cannot get all the information in a one stop shop situation!
First time home buyers in Litchfield County do have access to some very desirable products that can make your dream of home ownership come true. Give us a call at 860.946.0686 and we will help direct you to the appropriate people who can assist you in your search for the right mortgage for your situation!