Connecticut First Time Home Buyer Loans

If you’re a first time home buyer in Connecticut, you may feel intimidated by the home purchase process ahead of you.  Don’t worry.  It can be stressful to find a mortgage for your home, but our goal is to take care of this for you.

Connecticut First Time Home Buyer Information

There are many ways to finance a home purchase and many ways to combine different forms of financing.  In many cases, the possibilities are endless.  To get a better idea of how the process works, check out our first time home buyer checklist.  The five most critical steps are included here.

• Know what you need and what you can afford.  This is the most important place to start.  Before you even decide whether or not to purchase a home, determine where you think your income will be in one year, five years, and ten years.  With this in mind, what size mortgage can you afford?  What type of home should you purchase to meet your needs for this length of time?  What are your long term financial goals?
• Know your credit score.  Do you have bad credit?  If so, you should considering repairing it before you try to qualify for a loan.  This will save you money in the long run and make the whole process smoother.
• Know the different mortgage types and what they do.  There are fixed rate mortgages, adjustable mortgages, interest only loans, jumbo loans, VA loans, FHA loans, and more.  No two loan types are the same.  The FHA loan is uniquely designed for first time home buyers.  We discuss this loan type in greater detail below.
• Find out what mortgage rates are available.  Did you know different lenders offer different rates?  Check with at least four mortgage professionals in your area to find out what rates you’ll qualify for.
• Get preapproved as soon as possible.  Don’t try to purchase a home without getting preapproved by your lender for the estimate loan amount you’ll need.  Preapproval assures you that the money you need will come through when you need it.  This alleviates much of the stress involved in finding a home you can afford.

Follow these steps to get through the home purchase process swiftly and confidently.  Don’t forget to check out our first time home buyer checklist above for more details.

Use the calculator below for an estimate of what your monthly mortgage payment amount will be with your new mortgage.

1st Time Home Buyer Loan Programs

Remember that FHA mortgage program we mentioned earlier?  First time home buyers can take out a Connecticut FHA loan to finance their homes.  These loans are guaranteed by the Federal Housing Administration, which makes them highly affordable to homebuyer who wouldn’t otherwise have many financial options.

Rates on FHA loans are typically low.  Lenders don’t require you to have a high credit score or high income, but you will need to prove stable employment.  You won’t need to worry about the down payment.  FHA down payments are small, just 3.5% of the purchase price.  Find out what your county’s Connecticut FHA loan limits are before you decide to pursue this loan type.

You can get additional information on the Connecticut page of the FHA website.

About Connecticut

Connecticut is one of the smallest and most densely populated states in the nation, but it is also one of the wealthiest.  Bridgeport, Hartford, and New Haven are all major cities in the state.

In Connecticut the homeownership rate is 66.8% with a median home price is $166,900. The state has the highest per capita income in the entire country, which means many first time home buyers are well equipped to purchase their first homes.

Popular loan programs

Lenders in: Connecticut.