Probably the largest obstacle for a first-time home buyer is saving for a down payment and closing costs. Depending on the type of mortgage you apply for, the expected down payment ranges from 3% to 20%. But don’t worry, help is available!

At Troy City Mortgage, we won’t let it get in the way of you owning a home, and with your good credit, there are down payment assistance programs that we can help you qualify for. We are licensed in Massachusetts, Rhode Island, Connecticut, and Florida, and each of these states has down payment assistance programs. Here is a summary of the programs in each of these states.

Massachusetts

In Massachusetts, two state agencies coordinate statewide down payment assistance.

MassHousing – Offers affordable mortgage options to low- and moderate-income buyers, closing cost assistance to military borrowers, and even a no-mortgage-insurance-required program, among other benefits. See our full guide to MassHousing down payment assistance, including how the $30,000 option works.

Massachusetts Housing Partnership – Offers the ONE Mortgage Program for first-time home buyers, giving you peace of mind knowing your mortgage is financially sustainable.

Additionally, many Massachusetts towns and cities have down payment assistance programs administered through the local Housing Authority. Generally speaking, these programs provide down payment assistance of 5% of a home’s purchase price, up to $25,000.

Once you decide where in Massachusetts you want to live, Troy City Mortgage will work with you to secure the most generous first-time buyer down payment assistance available.

Rhode Island

Rhode Island Housing is the primary agency that coordinates first-time home buyer down payment and closing cost assistance programs.

• Closing Cost and/or Down Payment Assistance– Rhode Island Housing offers a 15-year fixed second mortgage to finance the down payment and/or closing costs.

Providence, Cranston, Woonsocket, and Central Falls also offer down payment and closing cost assistance programs above and beyond those offered by Rhode Island Housing.

Connecticut

The Connecticut Housing Finance Authority (CHFA) is the main source of down payment and closing cost assistance programs in Connecticut. They can also provide access to affordable mortgage programs for first-time buyers that help bridge the gap between your savings and your down payment.

If you have the monthly income to make mortgage payments but not enough to cover upfront costs, you may qualify for a low-interest loan that helps cover the down payment and closing costs. Borrowers can finance the down payment and closing costs with a Down Payment Assistance Program (DAP) Loan. A DAP Loan provides home purchase assistance up to $20,000 to put towards your down payment and closing costs.

In order to qualify for a DAP Loan, you must first apply and qualify for a CHFA mortgage and be able to demonstrate your ability to repay both your first mortgage and the DAP loan.

There is also down payment assistance available through the Housing Development Fund, Inc. (HDF). HDF offers first-time home buyer down payment assistance programs to help make buying your first home affordable. If qualified, HDF offers first-time buyers two primary down payment assistance programs:

• SmartMove CT offers low-interest down payment assistance for CT first-time home buyers for up to 25% of the purchase price when used for down payment and qualified closing costs.
• Live Where You Work CT provides up to $20,000 in 0% down payment assistance for first-time home buyers purchasing homes in the city where they work.

At Troy City Mortgage, we stand ready to help you with the qualification and application process.

Florida

Down payment assistance is available through the Florida Housing Finance Corporation (FHFC). First-time homeowners can apply for a 3% or 4% FHFC preferred down payment grant. The grant amount is based on the home’s purchase price and, unlike loans, does not have to be repaid.

If you’re not eligible for a FHFC down payment grant, there are other options. FHFC offers down payment and closing cost assistance through a second mortgage loan to eligible home buyers. The Florida Assist Loan offers up to $7,500, and the Florida Homeownership Second Mortgage provides up to $10,000 to be used for down payment and closing costs.

The Florida Assist Loan is a deferred second mortgage with a 0% interest rate. The Florida Homeownership Loan Program Second Mortgage is a 15-year second mortgage with a 3% interest rate. Your income level determines program eligibility for these programs.

At Troy City Mortgage, we are dedicated to helping you buy a home. If you’re a first-time home buyer who needs help putting together your down payment, we’re ready to shepherd you through the process. Use this link to schedule a time for your free qualifying consultation.