CONVENTIONAL

TERMS: 15, 20 , 30 YEARS

Best For:

• Long term ownership
• When you expect to stay in the home for many years

Features:

• Long term ownership
• When you expect to stay in the home for many years

Benefits:

• Interest is fixed for the life of the loan
• Payments become a smaller part of your budget as your income increases

ARMS (ADJUSTABLE RATE)

TERMS: 1 to 10 YEARS

Best For:

• When you are buying a starter home that you plan to sell within a set time
• The adjustable time period will determine how much cheaper the rate will be from a conventional mortgage
• Stable interest rate environment

Features:

• Usually has a lower rate than conventional mortgages
• The shorter the time period the lower the rate will be for a fixed time before the rate adjusts
• When rates don’t change much, you don’t have to worry about increases

Benefits:

• Payments are fixed for a set time then can adjust if rates increase after the rate period has expired
• Generally the amount the mortgage rate can adjust is known in a rising interest environment
• Lower overall costs if you can plan when you will sell your home

1st TIME HOMEBUYERS

TERMS: 15, 20, 30 YEARS

Best For:

• First-time home buyers, retirees
• Families in underserved areas
• Low-income borrowers

Features:

• Purchase and no cash out refinancing
• Manual underwriting
• No reserves required for single-unit properties

Benefits:

• Flexible sources of funds
• Reduced mortgage insurance coverage levels
• Minimum down payment of 3 percent

HOME RENOVATION

TERMS: 15, 20, 30 YEARS

Best For:

• Refinancing an existing home mortgage or rehabilitating a home that needs work
• Works based on plans you develop with an architect

Features:

• Allows you to get a higher mortgage based on the completed value of the home after renovations
• Mortgage company values the completed project and bases home value accordingly

Benefits:

• Helps you get the money you need for a major renovation of a home
• Tends to be a longer process but can be extremely worthwhile

203K REHABILITATION

TERMS: 15, 20, 30 YEARS

Best For:

• Remodel or first-time home buyers
• Easier requirements for Credit Score and income
• Only available for primary residence
• More paperwork may be involved

Features:

• As low as 3% down payment
• Designed to help lower income situations
• Seller can contribute up to 6% of selling price
• Requires more work to fill out government forms

Benefits:

• Great for first time home buyer with smaller down payment
• Allows home purchase with lower requirements
• Excellent for sale from parents to children
• Takes longer but could be very helpful in the right situation

CHFA – CT HOUSING AUTHORITY

TERMS: 15, 20, 30 YEARS

Best For:

• Teachers and Municipal workers
• Income Limits may apply
• Check with us if you think you might be interested

Features:

• Special Program for first time home buyers
• Based on certain area of CT
• Lower payments

Benefits:

• Lower interest rates and down payment assistance
• Can be very cost effective if you qualify
• Designed to help first time CT buyers with home purchases