A Game-Changer for First-Time Homebuyers: The CHFA $25,000 Forgivable Loan

 

For many first-time homebuyers, the biggest challenge is saving enough money for the down payment and closing costs. With rising home prices and increasing costs, saving for these expenses can feel like an impossible task. But what if you could receive $25,000 to help cover these costs—and never have to pay it back?

 

That is exactly what the Connecticut Housing Finance Authority (CHFA) is offering to eligible first-time homebuyers through its $25,000 forgivable loan program. This program is designed to make homeownership more accessible by helping buyers overcome one of the biggest financial barriers to purchasing a home.

 

What is the CHFA $25,000 Forgivable Loan?

This program provides up to $25,000 in financial assistance to first-time homebuyers to help cover their down payment and closing costs. For many buyers, this can be a life-changing opportunity, allowing them to purchase a home sooner rather than waiting years to save up enough money.

 

Who Qualifies for the Program?

To be eligible for the CHFA forgivable loan, homebuyers must meet the following requirements:

• ✅ First-Time Buyer Requirement: Buyers must be first-time homebuyers, meaning they have not owned a home in the past three years. Some exceptions may apply for those purchasing in targeted areas.
• ✅ Residency Requirement: The home must be located in Connecticut and serve as the buyer’s primary residence. Investment properties and vacation homes do not qualify.
• ✅ Income and Purchase Price Limits: Buyers must meet income and sales price limits, which vary by town and county. These limits ensure the program is targeted toward those who need assistance the most.
• ✅ Homebuyer Education: Applicants are required to complete a homebuyer education course through CHFA to ensure they understand the home buying process and financial responsibilities of homeownership.

 

Why This Matters for First-Time Buyers

Owning a home is a major milestone and a way to build long-term financial security, but many buyers get discouraged by the large upfront costs. This CHFA program can significantly reduce the financial strain, allowing buyers to:

• Buy a home sooner: Instead of waiting years to save for a down payment, buyers can move forward with confidence.
• Keep more money in savings: Having extra cash on hand after buying a home provides a financial cushion for unexpected expenses.
• Are you a teacher, police officer, veteran?  You receive an additional .25% off their competitive published interest rates.

 

Additionally, CHFA offers competitive interest rates and a variety of mortgage options that can further reduce the cost of homeownership.

 

How to Get Started

If you are a first-time homebuyer or know someone who is, this is an opportunity worth exploring. Taking advantage of this forgivable loan could be the key to making homeownership a reality.

 

It is important to note that you cannot go directly to CHFA to obtain this loan—it must be provided by an approved lender, and there are only a limited number of lenders who offer these types of loans.

I have worked with many first-time buyers, guiding them through the CHFA loan process to successfully purchase their first home. If you have any questions, want to check if you qualify, or are ready to start the application process, I am happy to help! You can reach me at Audra Santos, asantos@totalmortgage.com

or 203-526-9345

If you would like to make an appointment with me, please click on the following link and choose a time that fits into your schedule https://calendly.com/mortgagepartner.