Time to Own Program - Down Payment Assistance for First Time Home Buyers!

Posted on: June 16, 2022 - 1:55pm
Time to Own

East Hartford Advises Residents of Time to Own: A Down Payment Assistance Program for New Homebuyers

The East Hartford Department of Health & Social Services is alerting residents of a new state program offering down payment assistance to low and moderate-income homebuyers in Connecticut.  The Time to Own program provides a new source of funds for down payment and closing costs for applicants applying to the Connecticut Housing Finance Authority’s (CHFA) First-Time Homebuyer Program.

As a key component of the program, Time to Own provides added financial assistance to homeowners seeking to buy homes in higher resourced communities, where home prices are often out of reach for new homebuyers. These higher resourced communities, referred to as Higher Opportunity Areas in the Connecticut Opportunity Map, are evaluated based on school performance, access to job opportunities, and other community resources.

Residents considering buying a home in East Hartford may be eligible for assistance up the following amounts:

  • Census Tract 5111: Borrowers purchasing a home in this area may be eligible for up to $50,000;
  • For any other property in East Hartford, the loan amount may be up to $25,000.

Studies have shown that owning one’s home enhances your quality of life in a variety of specific ways. Homeowners accumulate wealth as the investment in their home grows, enjoy better living conditions, are often more involved in their communities, have better health outcomes, and children in home owning families tend to outperform children in renting families in overall academic achievement.

Benefits available through the Time to Own Program:

  • 0% Interest rate with no monthly payment required.  
  • Ten percent (10%) of the principal balance will be forgiven annually, on the anniversary date of the loan closing, until the loan is fully forgiven on the tenth anniversary.   
  • Financing to cover up to 20% down payment and up to 5% closing costs.
  • Loan amounts up to $50,000 for homes located in High or Very High Opportunity Areas (per State of CT Opportunity Map)
  • Loan amounts up to $25,000 for homes located in areas other than High or Very High Opportunity Areas.

Eligibility Requirements:

The Time to Own loan is only available to eligible applicants that qualify for and receive a CHFA first mortgage.

  • The Time to Own loan may also be used in conjunction with other down payment assistance programs.
  • Applicants must be a current resident of Connecticut and able to demonstrate residency for the most recent three (3) years.
  • Applicants who are not first - time homebuyers may also apply if they plan to purchase in a targeted area of the state.  Borrowers may not own any other property at the time of the CHFA mortgage closing.

For additional questions, applicants may contact the CHFA Homeownership Department at (860) 571-3541 or email sfaminquiry@chfa.org.  For more information, please view the Time to Own flyer and visit Time To Own Forgivable Down Payment Assistance | CHFA.