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First Time Home Buyer in ConnecticutIf you are looking to buy your 1st home, you've come to
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Today’s Rates for First Time Homebuyers in Connecticut

Sunday, June 16, 2024

Mortgage rates are at 3.00% for the 30 year fixed loan program and at 2.56% for the 15 year fixed. As for variable rates, the 5/1 ARM rate currently stands at 4.56%. Check out FHA and VA rates as well if you are doing low or no down payments.

Connecticut First Time Home Buyer Checklist

  1. Get educated about your loan program options. If you're moving to an eligible area, you may qualify for a zero down payment loan through USDA. Veterans and active duty may be eligible for VA loans, which do not require cash down. The content in the paragraphs below should give you an idea of where you may fall. 
  2. Get familiar with your credit score. Your credit should rest somewhere above 600, but few lenders accept scores in the high 500s. If your credit score needs improving, work on boosting it before you try to take out a mortgage. Once annually, you're able to request a free credit report from the three major credit bureaus.
  3. Shop interest rates from different lenders in your part of Connecticut. Choose one who not only provides a great offer, but carries a high rating from the Better Business Bureau.
  4. Get pre-qualified or pre-approved. Once you've picked a lender, gather your last two pay stubs and tax returns from the past two years, and anything else required.
  5. Determine your budget. You could be pre-approved for a loan amount that is far greater than you had anticipated, but do not base affordability on the number provided alone. Remember - pre-approvals are not guaranteed, and only you know what you can truly afford. 
  6. Begin home shopping. Be sure to avoid making exorbitant purchases, taking out new loans, or anything else that could weaken your financial standing. Lenders will check your accounts again prior to closing your loan.  

Low Down Payment Loans Through FHA

If you’re a first time home buyer without a lot to put down, a Connecticut FHA loan may accommodate you. FHA loans are backed by the government and designed to help home buyers with limited upfront funds receive financing.

  • Down payment: 3.5%
  • Minimum acceptable credit score: 580 (varies)
  • Mortgage insurance: Upfront (1.75% loan amount) and monthly
  • Property guidelines apply and are verified via home inspection

You can find additional information about FHA loans on the Connecticut page of the FHA website.

No Down Payment Loans Through USDA

The United States Department of Agriculture backs home loans for zero down to Connecticut home buyers looking to move to or live in rural areas. Find out if your buying city is eligible by searching the USDA's property map. Note that popular areas like Bridgeport and Hartford are not eligible. 

  • Down payment: None required; financing up to 102% available depending on home appraisal
  • Minimum acceptable credit score: 620
  • Mortgage insurance: Upfront (2% loan amount) and monthly
  • Income maximums apply 

Connecticut Grant and Assistance Programs

The Connecticut Housing Finance Authority has financing incentives specifically for state first time home buyers. The options accommodate borrowers of various backgrounds, including disability, public employee, Section 8 housing, and manufactured. View the full list to see your options.

Also offered is the Downpayment Assistance Program, which does not include a mortgage but facilitates down payment funds from a second loan with below market value interest rates. The down payment assistance loan amounts depend on the property price of the home. Participants must show they have ample savings or income to afford a monthly mortgage payment, but cannot provide down payment or closing fees. They must also complete a home buyer education course and pay a $200 application fee.

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user suit Lenders in: Connecticut.

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