New Haven, CT

New Haven program gives up to $25,000 to homebuyers for down payment and closing costs

Beth Torres

It’s not easy for prospective homebuyers to jump into the real estate market these days. Both prices and interest rates are high, making it a challenge for anyone looking to buy a home. Fortunately, an affordable housing government program established by the city of New Haven, Connecticut looks to assist buyers in getting on the housing ladder.

“I’m Home” program gives homebuyers up to $25,000

New Haven’s “I’m Home” program gives eligible homebuyers up to $25,000 to go toward the down payment and closing costs on a home. It’s all part of the Livable City Initiative that partners with the private sector to design and implement housing programs that enhance affordability.

The I’m Home program provides New Haven homebuyers with zero-interest, forgivable loans to help with down payments and/or closing costs. The initial amount available to homebuyers is $10,000. However, homebuyers with incomes meeting the 300 percent federal poverty guideline may qualify for an added $15,000, for a total of $25,000 in financial assistance.

The program assistance will not exceed 20 percent of the home’s purchase price. The assistance is in the form of a zero percent loan that is forgiven at the end of five years.

Should the homeowner decide to sell or transfer the real estate before the five years is up, the homeowner would need to repay the loan’s balance to the City of New Haven.

There are several other terms and conditions to be eligible for this program. For complete information, be sure to consult the “I’m Home” program.

How to apply for down payment and closing costs assistance

To apply for the homebuyers’ financial assistance program, go to the city of New Haven’s Livable City website. On the site you’ll find a downloadable PDF that includes details and the contact information for a city official who can answer questions and give assistance.

New Haven program gives up to $5,000 to renters

With inflation hitting all sorts of costs associated with housing, renters are also experiencing financial difficulties when searching for new rental units.

That’s why New Haven has an affordable housing program that gives renters thousands of dollars to pay for rental security deposits and utility deposits. For more information, check out my article on New Haven’s rental assistance program that gives renters up to $5,000.

What do you think about New Haven’s down payment program?

According to Zillow, the typical home value in New Haven is $270,031 (as of September 30, 2022). Over the past year, home prices in the area have increased by 11.4 percent. Some neighborhoods post higher prices. Typical home prices in East Rock, for example, are around $495,000, while Prospect Hill is closer to $520,000.

Given the high cost of housing, it seems like an extra $10,000 or $25,000 to go toward a down payment and closing costs would be a great help to prospective homebuyers.

What do you think about this? Let us know in the comments section. And if you’re interested in reading more articles about affordable housing programs, be sure to like and follow. I appreciate your support!

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