There are many loans available to home buyers in Ellington Connecticut. Because it is deemed a "rural" town by the US Department of Agriculture, buyers can qualify for specialty financing.
Rural Financing:
There are two main types of Rural financing and buyers qualify depending on the household income of the person, people or family.
"Low Income" is a classification where the household income must be less than around $45,000 per year in Tolland County. I say "around" because there are other factors that come into play such as allowable deductions for dependents, disabled and elderly members of the family and annual childcare expenses. If buyers qualify for this program, they can be awarded a government subsidy that can lower their effective interest rate all the way down to 1%. In addition, this program offers no money down, no monthly mortgage insurance, the seller can pay the closing costs and it has lenient credit-qualifying criteria.
Recently, I worked with a couple who purchased a $195,000 home with no money down, $2500 out-of-pocket expenses (such as inspections) and their monthly payment was below $1200. They were thrilled to say the least!
"Moderate Income" is the second classification where the household income must be between the "low" level and the county's median income. For Tolland County, this is between around $45,000 and $70,000. Again, I say "around" because of the possible deductions allowing a household to make more than $70,000 and still qualify. While these buyers don't qualify for the subsidy, they can still qualify for no money down, no monthly mortgage insurance, the seller can pay the closing costs and it has lenient credit-qualifying criteria. This results in one of the lowest payment options possible today.
Veteran's Financing - VA Loans:
Along with the Rural loans mentioned above, these are my favorite. Veterans have sacrificed to keep our country great and strong. It is with humility and pride that I can help them in return to accomplish their goals of home ownership.
Veterans Loans are no money down loans that also don't require the buyer to pay monthly mortgage insurance. In some cases, the seller can not only pay closing costs but also some of the debt the buyer may be carrying to help the buyer qualify. VA loans offer lenient credit qualifying and low monthly payments. For more information about VA loans, click here.
Federal Housing Administration - FHA Loans:
FHA loans allow buyers to make a low down payment of 3%. There are also state-run "hybrids" of the FHA program that allow for no money down. One such program is CHFA (the Connecticut Housing Finance Authority.) This loan is available in Connecticut only, but other states have similar programs. Like the Rural programs, there is a maximum amount of household income that is allowed, and it varies by county.
FHA loans have no such income restrictions, only maximum loan amount restrictions. These also vary by county.
Conventional Financing:
This refers to the type of loans that are bought by Fannie Mae and Freddie Mac. If you were to walk into a bank with great credit and money for a down payment, this is probably what they would offer you. With conventional financing, buyers are required to make at least a 5% down payment.
Jumbo Financing:
The term "jumbo" refers to loans greater than loan limits allowed by Fannie Mae and Freddie Mac. To help with the housing crisis, the Federal government forced Fannie's and Freddie's hand to temporarily allow for an increase in their loan limits. This is set to sunset at the end of the year and many lenders have already eliminated the higher loan limits. So, for single-family homes in Tolland county, a jumbo loan refers to a loan amount of greater than $417,000. Jumbo rates are typically higher than conventional rates however there is a way around it that could provide for a lower payment. For most Jumbo loans, the borrower will be required to make a 5% down payment although more favorable terms are available for a down payment of 10% or more.
As you can see, despite the doom and gloom portrayed by the media, there are still many options for home buyers. If you would like to learn more about financing options, please visit us at www.righttracfg.com or you can call our FREE information hotline at 888-833-2369 ext 1119.
When it comes to No Money Down Financing, we are the Experts!
Eric Boucher
Right Trac Financial Group
860-282-6182x100
eric@righttracfg.com
Desirable Ellington Estates in Ellington, Connecticut hosts this stunning brick Colonial in a beautiful picturesque neighborhood. 
