First Time Homebuyer? Try Your State Housing Authority

One of the best kept secrets about mortgages is the great deals that home buyers—especially first time home buyers—can get on a mortgage from their state housing finance authority. In fact, according to a national survey last year by NeighborWorks America 70% of U.S. adults are unaware of down-payment assistance programs available for middle-income homebuyers in their community.

State housing finance authorities are state-chartered organizations established to help meet the affordable housing needs of their residents. Most housing finance authorities (or HFAs) are independent entities that operate under the direction of a board of directors appointed by each state’s governor.



There are more than 2,400 programs available across the country from state HFAs. For qualifying buyers, they offer first and second mortgages at below market rates, down payment and closing cost assistance, grants and credits to help with monthly mortgage payments, homeownership education and more.

Borrowers with debt payments that are too high to qualify for a conventional loan may be more successful with an HFA loan. Like FHAs, HFAs are exempt from the new ability-to-pay rule that took effect last year, known as the QM Rule.

The programs available through HFAs vary from state to state.  For a directory, you can go to https://www.ncsha.org/housing-help.

In Connecticut, for instance, HFA loans are underwritten by approved lenders. If you live in Connecticut (where, incidentally, Total Mortgage is a participating lender) you should contact your loan officer to learn more about the 38 programs available to home buyers and homeowners from the Connecticut Housing Finance Authority. These include:



The Homebuyer Mortgage Program. 

This is for first-time homebuyers (who have never purchased a home or had an ownership interest in a residence in the past three years) who meet minimum credit, income, and employment standards.

CHFA sets income limits for every town in the state based on local income levels and household size. See CHFA income limits to find out if you qualify.

 Down Payment Assistance.

CHFA also offers loans up to $3000 for first-time buyer who have difficulties raising the cash for down payments and closing costs.

Targeted Areas.

The Connecticut Housing Finance Authority (CHFA) suspends many of its mortgage eligibility rules for homes purchased in areas of the state targeted for revitalization. These “targeted areas” have been recognized by the federal government as likely to benefit from an increase in homeownership.

The cities of Bridgeport, Hartford (except for Census Tract 5245.02), New Haven (except for Census Tract 3614.02), New London, and Waterbury have been designated as targeted areas. Also, portions of Ansonia, Danbury, Groton, Meriden, Middletown, New Britain, Norwalk, Norwich, Stamford, Torrington and Windham have been designated as targeted areas.

Other Programs for Buyers and Owners.


CHFA also offers its residents:

• Mortgage programs for military, police, and teachers
• Homeowner’s Equity Recovery Opportunity (HERO) Loan Program for buying and rehabbing distressed properties
• FHA rehab programs
• HFA Preferred Loan Program for first-time home buyers who qualify for low cost mortgage insurance coverage
• Homeownership Mortgage Program for eligible tenants of publicly assisted housing
• Home Of Your Own Mortgage Program (HOYO) for disabled residents
• Mobile/Manufactured Home Mortgage Program for those purchasing a mobile manufactured home in a state-licensed mobile home park.

 Don’t Forget to Stay Educated

It’s important for new buyers to seek homeownership education. It’s often a requirement for down payment programs and it gives buyers confidence with the home buying process, financing options, including down payment programs, and budgeting.

Take a moment to find out what’s available to you. Don’t assume you won’t qualify. Millions in mortgage and down payment assistance is available through state HFAs every year.

source: totalmortgage.com

Secrets to Buying a Home that Will Appreciate Over Time

No one buys a home hoping its value will stay exactly the same for the next 30 years. In a healthy real estate market, most people just assume that their property will appreciate over time, even if only slightly. But, as many real estate investors already know, there are ways to pick out the most promising house.


 While you and your family’s needs should always come first when it comes to choosing a place to live, keeping some of these factors in mind can help you pick a home that will appreciate over time.

“Location, location, location”

This is one cliché that’s actually spot on. Of all the things that factor into a property’s potential to appreciate, where it’s located and what surrounds it are easily the most important.

Though it’s impossible to how the area around your potential home will change over the years, you can make an educated guess based on factors like the quality of the school system. Is the house 30 minutes from the nearest grocery store? Not great—unless a new grocery store has just broken ground two miles down the road, in which case, the neighborhood may soon be more desirable.

And this happens all the time. Whereas Brooklyn was once just a scruffy, working-class borough, a recent influx of young workers and artists fleeing skyrocketing Manhattan rent have upped demand, spiking property values.

Appearances matter…

Location doesn’t just matter for convenience’s sake. A rundown neighborhood with unkempt yards can bring down the value of your property, no matter how nice it is. Also be wary if there are any foreclosures in the area. Though this doesn’t necessarily spell out doom for the whole neighborhood, foreclosures do tend to look rougher due to lack of upkeep. It’s possible for the situation to snowball if those living near the foreclosure start to feel too apathetic.

…but not when it comes to your potential house

While it’s important that the property you buy has some potential, it’s okay if it isn’t in the best shape. In fact, you should be aiming to buy the worst house in a great neighborhood.

The logic here is pretty simple. If your aim is to buy low and someday sell high, you have much less room for improvement in a house that’s move-in ready. Also, you can’t change the location, but you can change the house.

Avoid a house that’s highly customized

For maximum appreciation, you want a property that will appeal to as many people as possible later down the line. So if a house you’re considering has a lot of customization or a very unique design, it may not make for a great investment, unless you’re planning to make significant changes.

Pools are a great example, as they have a tendency to be divisive. While some people seek them out specifically, to others, they’re hazards and eyesores that require all kinds of upkeep.

source: totalmortgage.com