Down Payment/Closing Cost Assistance Loan Program
What is it?
Financial assistance for first-time homebuyers for down payment and closing costs. The amount of assistance provided to any low-income family cannot exceed the greater of six percent (6%) of the purchase price of a single family (1-4) housing unit or $10,000. The City will provide a zero (0%) interest forgivable loan that is forgiven at the rate of 20% per year, as of each anniversary of the loan’s execution date. At the end of the five-year loan period the loan is fully forgiven. The applicant may sell or transfer the property at any time during the monitoring time period; provided the balance of the loan is repaid to the City of New Haven or the property is sold /transferred to an individual who is willing to assume the balance and the terms and conditions of the loan. The deferred loan can be used for: down payment, closing cost or the combination of both down payment and closing cost.
What property qualifies?
The 1-4 four family property being purchased must be in New Haven, and must comply with all applicable Federal, State and local laws, and serve as the buyer’s primary residence. Investment properties are not eligible.
Who can qualify for a loan?
The buyer’s household income* must not exceed 80% of median family income for the New Haven/Meriden MSA, as adjusted for family size. The buyer must also be current on real and property taxes and must have already attained first mortgage financing commitment for the purchase of the home. In addition, the buyer must contribute a minimum of 2% of the purchase price of the property from his/her own or other non-City resources (Gifts/grants/loan programs).
What restrictions come with loan allocation?
The owner must occupy the home for the full term of the loan as his/her primary residence. First-time homebuyers must successfully complete a homebuyer-training seminar approved by the City.
Where can I get more information about the Down Payment/Closing Cost Assistance loan program?
Deborah Golia, Program Manager at (203) 946-8389
Terms and conditions of loans are subject to change without notice.
Contact Name: Deborah Golia
Contact Email: DGolia@newhavenct.net
Contact Phone: 203-946-8389