Connecticut Time To Own Loan: Forgivable Down Payment Assistance | Total Mortgage

Abstract

What to Expect The CHFA's Time to Own program is a forgivable down payment assistance loan that aims to help prospective homebuyers who cannot afford down payment or closing costs on their own. The Time to Own loan is accessible to eligible homebuyers alongside a CHFA first mortgage loan to go toward the purchase of their first home. Loan Structure The Time to Own down payment assistance loan has a 10-year zero-percent non-amortizing term attached. For ten years, ten percent of the loan's principal amount is forgiven annually - eventually resulting in full loan forgiveness. Borrowers can direct their Time to Own down payment assistance loan in the following ways: As much as 20 percent of the loan amount toward a down payment As much as 5 percent of the loan amount toward closing costs Meanwhile, the Time to Own down payment assistance loan term cannot go beyond 10 years. The borrower must also meet certain qualifications and obtain a CHFA first mortgage loan, which the Authority's first-time homebuyer loan underwriting standards will be applied to. The borrower is free to use other down payment assistance programs alongside the Time to Own loan, including the CHFA's existing down payment assistance program.