As of January 16th, the USDA (Rural Development) mortgage will not be available in Stonington or Mystic, as well as most of New London County. If you are not currently under contract on a home with this type of loan your best option is the CHFA mortgage. Allow me to explain:
-The USDA mortgage is a 0% Downpayment mortgage (i.e. 100% financing) that is only available in "Rural"towns. Stonington and the Stonington side of Mystic used to qualify as rural, but now has too many people according to the last census.
-The only other 0% down loan available (other than the Military VA mortgage) is the CHFA mortgage. It is available for first-time homebuyers, some call it "the First-time Homebuyer mortgage". This program allows you to finance all of the closing costs. The only costs to have ready are that you will always want to have a home inspection, the appraisal and the home deposit. The deposit will be returned to you at the closing though, but the rest cannot. Combined, those costs usually will be around $900-$1,000, and are incurred on every mortgage, including the USDA loan.
-CHFA's interest rate is the lowest 30 year, FIXED interest rate available today. There are adjustable rate mortgages that are lower, but then you have the risk of the payment increasing.
What are your thoughts on USDA's decision? What are your thoughts on the CHFA program? I'd love to hear your opinion.
