HARTFORD, Conn. (WTNH) — If you have wanted to buy your first home in Connecticut but did not think you could afford it, Gov. Ned Lamont says to think again!
It is expensive to rent in Connecticut, and there is a shortage of affordable housing, but an old idea has become new again.
In his proposed budget, the governor dusted off an old program called “Time to Own.” If the General Assembly signs off, the program will help low-and moderate-income families with a down payment and closing costs on their first home.
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Lamont said the program would provide forgivable loans to low and moderate-income families to get their first home.
In his budget proposal speech, the governor used an example, stating that a $300,000 home would require a 10% down payment. If a resident’s job would only allow them to save $15,000, they would still need another $15,000 to afford the complete down payment.
The Connecticut Housing Finance Authority wants to provide residents who meet the criteria with a forgivable loan for that other $15,000.
- 0% Interest
- 10-year forgivable loan
- Financing up to 20% down payment
- And up to 5% closing costs
- Up to $50,000 loan
To qualify, you must be a current resident of the state for at least three years.
This program has been around for years, and the administration is proposing adding additional funds to it to help young people become homeowners.
“The key to building wealth for yourself and your kids is ownership. Owning your own home and even owning your own business. They could build the building blocks for success for every zip code in our state. I said it before, and I’ll say it again. Not more taxes, but more taxpayers,” Lamont said.
The governor’s idea is to invest $100 million over two years into the “Time to Own” program.
“That’s a proposal we had ten years ago. Learn here, live here. Republicans championed it. It passed. Unfortunately, it was never implemented by DECD. So again, we think it’s another proposal that will go a long way of helping young people stay in Connecticut and be homeowners,” State Rep. Vin Candelora, the Republican House Minority Leader, said.
The budget would also include $200 million to build workforce housing. The administration also wants developers to add at least 6,400 new housing units in the state.
All proposed ideas will be negotiated and voted on by lawmakers before the legislative session ends in June.
For more information on the Time to Own program, click here.