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Making the jump from renting to homeownership doesn’t have to break the bank or feel impossible. With help from affordable homebuying options and government assistance, lenders have more options for potential homebuyers. In addition to government-sponsored programs like FHA or USDA mortgages, we’re proud to offer state bond programs for qualifying borrowers.
With so many programs to keep track of, what should you know about obtaining a state bond mortgage?
State bond programs are sponsored through HFAs, or State Housing finance Agencies. These state-chartered nonprofit organizations provide financing and other services for affordable housing and community development activities. They operate as financially independent organizations and are governed by a state-appointed board of directors.
HFAs are designed to provide funding to increase and sustain affordable homeownership opportunities or rental options. Mainly, these state bond programs benefit low- to moderate-income renters and buyers and other underrepresented groups, such as active military and veterans, first time homebuyers, police officers or teachers, and disabled individuals.
Geographic restrictions, income limits, and/or maximum amounts often apply. Usually, a bond must be repaid if participants do not own or occupy the property as their principal residence for a specified period of time.
There may be more state programs available than you expect! Be sure to search the Department of Housing and Urban Development’s website, check out local nonprofit organizations, local government websites, or the government grant database for home mortgage opportunities.
Some bond programs may have very few limitations. Others may require a credit check and income verification. To prepare borrowers for homeownership, counseling or classes may also be required.
After you submit your application, turnaround time may be anywhere between 48 hours to several weeks.
The Connecticut Housing Finance Authority, also known as CHFA, was created in 1969 by the Connecticut State Legislature to provide low- and moderate-income prospective homebuyers with more opportunities for accessible and affordable housing. Their programs are available to eligible first-time homebuyers who are Connecticut residents. There are also programs for those borrowers who do not fit all the standard criteria, but are looking to purchase in a targeted area.
CHFA programs are available for existing single-family homes, 2- to 4-family homes, and condominiums. Gift funds may be allowed to assist in paying borrower’s closing costs and prepaid costs. Their Down Payment Assistant Program (DAP) is also available to qualified homebuyers who do not have sufficient funds for a down payment or closing costs.
Florida Housing aims to improve Florida’s communities and recognize their efforts in providing innovative and sustainable solutions to those in need of affordable housing. Florida Housing programs are available for low- to moderate- income first-time homebuying Florida residents with counseling and homebuyer education available.
Homestead Funding offers Florida Housing’s State Housing Initiatives Partnership Program (SHIP), their Standard Bond program, and their Hometown Heroes Program.
SONYMA is a public authority established by New York State to provide low- and moderate-income residents with opportunities for affordable homeownership. SONYMA offers competitive interest rates, a minimum down payment of 3%, and no prepayment penalties. Borrowers may also utilize down payment assistance.
Applicants are required to submit their employment history, asset documentation, rental verification, and an acceptable credit history. Completion of a homebuyer education course is also required.
Through Homestead Funding, borrowers have access to both SONYMA’s Achieving the Dream program and their Low Interest Rate program.
The Massachusetts Housing Financing Agency was established in 1966 with the goal of offering residents mortgage and down payment assistance options. With both low and no down payment options available, Massachusetts residents may benefit from both low and no down payment options as well as 30-year mortgage terms with competitive and fixed interest. Qualifying borrowers may purchase or refinance 1-4 family homes and condominiums.
Offering State Bond programs to our borrowers is just one of the many ways that we work hard to make homeownership available to more people. Our Loan Originators work directly with our borrowers, creating a personal and professional relationship to help meet their goals. To find out if you qualify for one of our State Bond programs, contact us today!
Homestead Funding offers exceptional customer service and a convenient mortgage process. Whatever your financing needs, our goal is to exceed your expectations.
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