(WTNH) — During these times, we’ll take any good news we can get. So, if you’re considering buying a home for the first time, there’s probably no time like right now.
The Connecticut Housing Finance Authority is offering an interest rate of 2.5 percent.
“CHFA helps first time home buyers achieve the dream of homeownership,” said CEO Nandani Natarajan. “The rate we’re offering today, 2.50% is the lowest rate that CHFA has ever offered in its 51-year history.”
The mission is to help and low to moderate income home owners. You might be asking yourself, “How did we get here?” The truth is, interest rates have been decreasing in recent years.
“There’s been some actions taken by the Federal Reserve to stimulate the economy which has, in turn, led to long-term rates dropping. That has allowed CHFA to finance things at a very low rate as well,” Natarajan said.
CHFA is offering additional help with its Downpayment Assistance Program (DAP). They’re calling it just another tool to help first-time buyers.
“When you’re a first-time home buyer, generally speaking, you’re looking to put down roots,” Natarajan said. “Our program allows you to do that.”
They do it by providing a very competitive first mortgage with a 2.50% rate right now, but, “We’re lending you the money to pay for your downpayment assistance and for closing costs.”
Applicants have to meet specific income and sales price criteria based on the town they purchase the home. While it must be the buyer’s first home, those who have not owned a home in three years qualify as well.
“I think it’s going to make buying a home less painful because you’re able to afford more with a much lower interest rate than you would with a higher rate,” Natarajan said.
Buying for the first time can be overwhelming. With that in mind, CHFA offers first-time home buyer counseling for free.