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Pilot Downpayment Assistance and/or Closing Cost Program for Manchester Interest Rates

Currently, the Pilot Downpayment Assistance and/or Closing Cost Program for Manchester is providing mortgages at the following rate:

Interest rate: 2.500%** (APR range 2.6 – 3%)
Fees: Up to One Point (1% Origination Fee) * Payable to Lender
Term: 30 years, fixed rate

** Please note, this rate is subject to change and additional fees may apply.


Eligible borrowers must be purchasing a home in specified areas of Manchester. These areas are identified as Census/Block Group numbers: 5142003; 5144001-5144004; 5145002; 5146001-5146005; 5147001-5147004; 5148003; portions of 5142001 and 5142002; portions of 5144005. Please note: Homes across the street from all eligible area boundaries shall be eligible for the program.

Individuals and families are eligible to participate in the Program providing they are first-time homebuyers (or prior homeowners who have not owned a home in the past 3 years) and have an annual income which is at or below 80% of the area median income for Manchester, adjusted for household size according to HUD income guidelines.


Loan Program
This program offers a reduced first mortgage interest rate of ¼% below CHFA’s regular Homebuyer Mortgage Program rate for a term of 30 years. In addition, a 0% interest rate loan up to a maximum of $4,000 will be available from the Town of Manchester to assist with the downpayment and/or closing costs associated with the purchase of a single-family dwelling, a condominium unit on FHA’s Approved Condominium List, or a multifamily dwelling consisting of not more than four units. (The Town’s 0% interest rate loan may be used for up to 50% of the downpayment amount.)

The 0% loan is provided by the Town of Manchester and is forgiven at 20% per year over a five-year period. If the borrower sells or refinances the home before five years of ownership, the remaining balance of the 0% interest rate loan is to be repaid to the Town of Manchester. In order to participate in the loan program, all prospective borrowers must meet with the Town of Manchester to determine eligibility for the program with regard to total household income and to determine the presence of lead paint, if the home is built prior to 1978, through a Lead-based Paint Visual Inspection.

Borrowers who need additional funds for downpayment may apply for a CHFA Downpayment Assistance Loan through one of the Participating Lenders for the Program.

Prospective homebuyers who have a contract of sale to purchase a home in one of the specified areas of Manchester may contact the Town of Manchester to speak with a representative in the Manchester Planning Department at 860-647-3044 to schedule an appointment to determine eligibility for the program.

Once deemed eligible, borrowers may contact one of the two Participating Lenders in the Program to determine loan eligibility. Lenders will take the mortgage application and determine a borrower’s eligibility for a mortgage loan.


Income/Sales Price Limits
Individuals and families must have an annual income at or below 80% of area median income set for the Town of Manchester, adjusted for family size. See Chart below for maximum allowable income limits for the Program by household size. Sales price limits cannot exceed the sales price limit currently set for Manchester under the CHFA Homebuyer Mortgage Program.

1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person
$44,950 $51,400 $57,800 $64,200 $69,350 $74,500 $79,650 $84,750


Homebuyer Education
Borrowers will be required to attend an 8-hour Homebuyer Education class before they can close on their loan. These classes are free of charge, but may have costs associated with pulling credit, if applicable. The Participating Lender will direct you to contact a counseling agency to schedule participation in a class.


Contact Information
Contact the CHFA Customer Call center for more information on the Pilot Downpayment and/or Closing Cost Assistance Program for Manchester at 860-571-3502. Participating Lenders for the Program are as referenced below:

First Niagara Bank, N.A. Freedom Mortgage Corporation McCue Mortgage Company Norcom Mortgage
Tel: 860-713-8273 Tel: 800-813-9420 Tel: 800-382-0017 Tel: 860-676-8003