Mortgage in Connecticut
Connecticut is one of the best places to live in the country. With beautiful scenery, mountains, forests, and waterways, there's plenty to do outdoors. Plus, its proximity to NYC and Boston makes it easy to have a night on the town, no matter where you are in the state. Its beauty and proximity to economic hubs mean that Connecticut is pricey, with average home prices frequently exceeding $500k . Fortunately, our Connecticut mortgage calculator will let you see how much home you can afford!
If you have the good fortune to be moving to Connecticut, here's what you need to know about mortgages in the Constitution State.
Connecticut Mortgage Calculator: Your Options
Whether you're looking to buy a home or condo in Connecticut, here are your main options for a mortgage.
- Connecticut conventional mortgage: The conventional loan typically requires a minimum of 5% down and a 620 credit score. These loans are the number one way Connecticuters finance homes. If you get a jumbo mortgage, the requirements are more stringent, typically requiring 700+ for credit score and 20% down. You'll also usually need a few months of payments saved in the bank.
- Connecticut FHA mortgage: For people in Connecticut, FHA loans are a good option (although they may not be available in the pricier areas since many homes will exceed the limit). Still, if you can get an FHA loan, you can buy with as little as 3.5% down, assuming you have a credit score of at least 580.
- Connecticut VA mortgage: If you're a veteran, you can get a mortgage for as little as 0% down with no mortgage insurance. It's a fantastic deal. The only catch is that you'll need a credit score of 660 or above.
With the above information in mind, one of the biggest hurdles to homeownership in Connecticut is getting the down payment. Fortunately, there are some first-time homebuyer incentives that you should know. Once you read up on these, you'll be ready to plug some numbers into the Connecticut mortgage calculator.
First-Time Homebuyers in Connecticut
Connecticut is relatively unique in that it has a multitude of first-time homebuyer programs. The CHFA ( Connecticut Housing Finance Authority) runs them all.
General CHFA Programs
Down Payment Assistance Program
The down payment assistance program provides up to $20,000 as a low-interest rate second mortgage. The minimum amount is $3,000, and the maximum limit is your minimum down payment required for your home (e.g., 3.5% for FHA), subject, of course, to the $20,000 cap.
Eligibility Criteria: You must get a CHFA mortgage from an approved lender. Any amount above $10,000 in household savings must also go towards the down payment.
HFA Advantage and HFA Preferred Loans
With no upfront mortgage insurance costs and lower monthly premiums, this option is fantastic for those that don't have 20% equity. Plus, the insurance premiums automatically end when the borrower reaches 20% equity. This program can save you thousands, as you can see with our Connecticut mortgage calculator.
Eligibility Criteria: The home must be your primary residence, and the price of the property must be less than the specified sales price limits (varies by jurisdiction). Additionally, your income must also be under 80% of the area median income.
CHFA Conventional AMI Loan Program
This program is similar to the one above, except that it targets people who make more than 80% of the area median income.
Eligibility Criteria: The same criteria applies here as the Advantage and Preferred loans. The only difference is that this program is open to those that make 80%+ of the area's median income.
Specific CHFA Programs
Career Homeownership Programs
For police, military, and teachers, there are additional discounts for first-time homebuyers available from the CHFA.
For those who have a disability or who have family members with a disability, the Home of Your Own program provides a lower interest rate and down payment assistance.
Eligibility Criteria: You or a family member must have a disability. The home must be your primary residence. Additionally, the home must meet sales price limitations, and your income must also be below some thresholds.
Connecticut Mortgage Calculator: The Constitution State Awaits You!
With a vibrant economy and proximity to two leading economic hubs, Connecticut is an excellent place to live. Fortunately, with all the assistance options available from the CHFA, getting a mortgage and living in Connecticut isn't too challenging.
