Connecticut’s popular forgivable loans to help first-time homebuyers with down payments have returned.
The Time to Own program provides loans of up to $25,000 to assist with a down payment for eligible families. Time to Own reopened with the help of an additional $40 million in state funding.
The program previously offered forgivable loans of up to $50,000, but was lowered to $25,000 to stretch the allocated dollars to help more families, according to Connecticut Housing Finance Authority's Marcus Smith.
The program isn’t just a handout, according to state Department of Housing Commissioner Seila Mosquera-Bruno.
“The individuals applying for this program do have to take their classes. They do have to meet a requirement that they do have to have the credit,” Mosquera-Bruno said. “But this down payment and closing cost assistance helps them a little bit with a high increase in rents.”
The program was halted for about a month earlier this year, when the allocated funds were used.
“The Connecticut Housing Finance Authority bridged $5 million to keep with those contracts that were in process until we got to the bond commission,” Mosquera-Bruno said. “There were people in the process that [had] money allocated, and the ones that engaged into contracts. They also were able to continue with the process because of the bridge loan.”
Time to Own began in June 2022 and was popular, with funds running out by fall of that year. It’s had several new waves of funding and provided down payment help for about 4,800 families across more than 140 municipalities to purchase homes since the program started, Mosquera-Bruno said.
The latest round of funding is expected to bring Time to Own through April.
While the $40 million was approved during the state’s bond commission special meeting, it wasn’t with unanimous support.
Republican State Rep. Henri Martin was concerned the program was exacerbating the demand for housing stock.
“I don't see how it helps us continuing or helping us in making Connecticut affordable,” Martin said. “We have a lack of supply in the state of Connecticut, and obviously we have more buyers out there than we have homes on the market. I see this program as a contributing factor to that demand.”
Martin also expressed a wish for more effort and contribution on the part of the homebuyers.
“I don't see individuals who are putting in their earned money into purchasing a home,” Martin said. “I would like everyone to have a home. But the problem is, when you give people money, it's a little bit different than earning money and spending your own money.”
State Comptroller Sean Scanlon relayed during the meeting a personal email received from a Windsor family looking to take advantage of Time to Own funding, contrasting Martin’s concerns.
“He and his young family finally thought that home ownership was possible for them, and they needed us to reauthorize this funding in order to make that possible for them to close. I won’t disclose how much he said but they’re putting a lot of money into this,” Scanlon said.
