Minimum down payment you can put can be as low as 1 % (Savings Bank of Danbury & HDF First Time Homebuyer Program) or 3.5 % with FHA or CFHA ( State and Federal Programs).. if you put down 10% down, a local bank here in Danbury, Union Savings Bank has a great program which doesn't require any PMI.
There is also a USDA Rural Housing program that require no money down . There are certain restrictions on the qualifying towns with this program..
please counsel with a experienced mortgage officer..That's the key. you also a need a good real estate agent to help you to find you your home for the area of your choice..
Please let me know if you need my help to locate a mortgage officer or a home to live in anywhere in entire Connecticut.
Dee Ceylan, Realtor.
Don't forget about the $8,000 Tax Credit. If you are a first time home buyer, which includes anyone who has not owned a home in the past 3 years, you could be receive up to $8,000 back from you taxes. If buying a home in CT you will most definitely be entitled to the full $8,000. I beleive there recently was a change in the rules which allows you to get that money now instead of waiting till the end of the tax year. You might want to check with your accountant about this. You can also find further information on buying a home at http://www.raypoppe.com
Good Luck with your home search!
The amount of down payment required depends on your mortgage program.
As stated below, FHA loans are available, if you qualify, and only require a 3.5% down payment.
In Connecticut, we also have CHFA loans that work for some first time buyers, where you may qualify for down payment assistance in the form of a second mortgage.
A mortgage broker will be able to review all of the financing options that are available to you, and help you decide which one is best for you and your particular situation.
Also keep in mind that you will be responsible for closing costs - these include mortgage fees, title insurance, appraisal costs, inspection costs, etc., as well as amounts that must be pre-paid, which can include mortgage interest through the end of the month, a few months' worth of property taxes and hazard insurance, etc.
When you write an offer to purchase a home, you will be required to submit an earnest money deposit with the offer. Typically, this is 1% with the offer, and then another 9% when you sign contracts (usually about 14 days after your offer is accepted by the seller). However, this is negotiable, and sellers are often accepting of smaller earnest money deposits if you are in a loan program that requires less than 10% down payment. The earnest money deposits are applied, at closing, to your down payment and/or closing costs.
If you qualify for a VA loan there is no down payment. This is for military personel and their families, there is a funding fee that can be rolled into the loan amount
There are also home loans available USDA Rural Housing program that require no money down but there are limits on income and the areas that are eligible are very limited.
You can search eligible homes and the income limits at http://www.rurdev.usda.gov
No, there is no minimum down payment for a single family home because the home in in CT, but there are lender required minimum down payments for different types of loans. You need an experienced, competent loan officer to find out what you qualify for.
The Savings Bank of Danbury has an excellent first time home buyer program. If you qualify, you might be able to borrow the down payment if lack of down payment funds is an issue. However, you need to make sure that your financials are in order and that your income is stable, that you can comfortably afford the payments, etc. A conversation with a loan officer will help with this.
Also, you might ask your loan officer about CHFA (State of CT financing) and FHA loan programs. See the CHFA website: http://www.chfa.org for info on their programs.
If you need a recommendation for a loan officer feel free to send me an email, and if you wish to search for property in Danbury, you can do so at my website below.