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Program Description

The program is designed to provide matching financial assistance to qualified First Time
Homebuyers as defined by the U.S. Department of Housing and Urban Development
(HUD). Financial Assistance in the form of an interest free lien/second mortgage will be
provided to income eligible persons and families acquiring eligible property within the
Town of Hamden.

Permitted Use of Funds

Funds are available for down payments and eligible costs as described below. Funding
assistance for the program shall be in the form of an interest free lien/second mortgage
that is repayable only upon sale or transfer of the property. There are no monthly
payments. The maximum matching amount is $5,000.00 that can be used for the down
payment and/or anticipated closing costs.

General Program Guidelines

Eligible Properties
The subject property shall be located within the Town of Hamden. Only owneroccupied
single family, two family and condominiums are eligible for this
A. First Mortgage Approval
The applicant shall be responsible for securing a first mortgage from a private
lending institution. Loans should be written following underwriting criteria
typical for loans to first time, owner-occupied purchasers. Debt-to-income ratios
generally should not exceed 33% for housing costs (Principal, Interest, Taxes and
Insurance) and 42% for housing and personal debt combined.
In addition to the application and income documentation, formal requests for
financial assistance should include the following documents:
1. Fully executed Purchase Contract. (funds will be reserved at this time).
2. First Mortgage Commitment Letter.
3. Good Faith Estimate of closing costs (from your lender).
4. Lead-Based Paint Visual Assessment Report
5. Pre-purchase Counseling Certificate
B. Applications
The Community Development Office shall make available forms which
applicants will be required to complete in full prior to being considered or
qualified for the program. Incomplete applications will not be considered.
D. Income Requirements
There are income and asset limits for participating in this program that are
based on the size of the household. Income eligibility will be based on the
Adjusted Gross Income as reported on the most recently required federal income
tax return. The current limitations are as follows:
Household Size Annual Gross Income
1- $45,500
2 -$52,000
3 -$58,500
4- $65,000
5 -$70,200
6 -$75,400
7 -$80,600
8 -$85,800
E. Pre-Purchasing Counseling
After application and as a condition of approval, all those interested in
participating in the program must receive counseling conducted by an approved
agency. Applicants are encouraged to participate in programs offered locally by
non-profit agencies specializing in Housing and Credit Counseling. Information
on financial planning, managing savings and credit, selecting the right home,
working with realtors and the MLS, choosing a mortgage lender, closing costs and
the closing process are among the topics covered through these programs. These
programs can greatly enhance your knowledge of the home purchase process and
expand your options for mortgage financing. Many first mortgage lenders offer
special financing to applicants who have completed this training. A Certificate of
Completion will be required to receive financial assistance through the program.
The following non-profit organizations provide pre-purchase Housing
Neighborhood Housing Services of New Haven, Inc.
333 Sherman Avenue
New Haven, CT 06511
(203) 562-0598,
F. Lead Based Paint Procedures
All program participants will be provided with the informational pamphlet –
“Protect Your Family from Lead in Your Home”. Documentation needs to be
included in the applicant’s file that the program participant has received the
Properties constructed prior to 1978 may have been painted with paint containing
lead. To protect you and your family, the U.S. Department of Housing and Urban
Development has adopted regulations and procedures when federal funds are
being used to acquire property. A Lead-Based Paint Visual Assessment,
performed by a certified inspector will be required for all properties constructed
prior to 1978. If deteriorated paint surfaces are identified, lead paint testing will
be required and if lead is found, lead abatement (removal) and clearance (retesting
for complete removal) will be required. This must be completed prior to closing
on the purchase of the home. Abatement can be expensive and could put a
purchase option in jeopardy.
To avoid this potentially serious complication, inspect properties thoroughly
for signs of deteriorated paint both inside and out. Paint that is peeling,
chipping, chalking or walls that are cracked would be considered deteriorated
and potentially hazardous. If you want to purchase a home that has
deteriorated paint, include language in your Purchase Agreement requiring
that surfaces be repainted “prior to the Lead-Based Paint Visual
Inspection.” Normally these repairs are inexpensive and easy to perform.
Work performed prior to the Visual Assessment will not require lead
abatement and clearance testing. The Visual Assessment will be performed by
Community Development Office staff or agents at no charge to the purchaser
or the property owner. Copies of the Visual Assessment Findings and
Clearance Report documents, as necessary, shall be kept on file. Homebuyers
will also be provided with copies of these documents. VISUAL
G. Equal Opportunity Statement 8
The program is funded by a HUD Community Development Block Grant and is
governed by federal laws regarding fair housing, fair credit and equal opportunity
in lending. The federal equal credit opportunity act prohibits creditors from
discriminating against credit applicants on the basis of race, color, religion,
national origin, sex marital status, age (provided that the applicant has the
capacity to enter into a binding contract); because all or part of the applicant’s
income derives from any public assistance program; or because the applicant has
in good faith exercised any right under the consumer credit protection act. The
federal agency that administers compliance with this law concerning this agency
is the Department of Housing and Urban Development, Connecticut State Office,
One Corporate Center, 19th Floor, Hartford, CT, 06103-3220. The Town of
Hamden First-Time Homebuyer Program is an equal opportunity lender.