FHA Mortgages

An FHA loan is a great tool to help first-time home buyers own a home.

An FHA loan is specifically designed to help home buyers fulfill their dream of owning a home. By making the process easier, they can help those who may be feeling overwhelmed and intimidated by the home-buying process.

An FHA loan is a specific mortgage product insured by the Federal Housing Administration. Because the federal government insures the loan, lenders such as Naugatuck Valley Savings and Loan are able to offer more attractive terms to borrowers. FHA loans cannot be used for just any type of home purchase, though. They are specifically for new or existing single family homes, one- to four-family homes, a condominium unit, or a manufactured home on a permanent foundation.

Advantages of a FHA Loan:
  • Low down payment. An FHA loan only requires a 3.50 percent down payment. This can make home ownership for the first-time home buyer a much more obtainable goal. Also, the down payment can be a gift from a family member or other source.
  • Easy to qualify. It is easier to qualify for an FHA loan because it is insured by the Federal Housing Administration. This makes FHA loans a better option for those with blemished credit. While a first-time home buyer or someone with credit issues may have problems qualifying for a conventional mortgage, the FHA loan qualification process is much easier for these borrowers.
  • Low closing costs. Using an FHA-approved lender usually means lower closing costs than a conventional mortgage.
  • Lower overall costs. Because the Federal Housing Administration insures the loan, FHA loans typically have good interest rates, which save on the overall cost of the loan.

If you have any questions regarding this program, please contact one of our qualified loan officers at 203-720-5000 or e-mail us.

Connecticut Housing Finance Association (CHFA)

Homebuyer Mortgage Program
Please call your NVSL Loan Officer for more information.

Eligible Borrowers
Homebuyer Mortgages are available to first time homebuyers with low or moderate incomes who are buying moderately priced homes within CHFA sales price limits or persons who have not had an ownership interest in a home for the previous 3 years. Prior homeowners may qualify for a mortgage if the home they purchase is within a targeted area. Household income limits, which vary by town, apply to all borrowers with one exception: In targeted areas, over income limit households may still apply for CHFA financing without regard to the income limits.

Eligible Properties
The Homebuyer Mortgage loan may be used to purchase an existing one-to four-family home, a newly constructed single family home, or a newly constructed two-family home in a targeted area. Eligible condominiums and qualified mobile homes may also be financed. Maximum sales limits have been established for each county, with
exceptions for some individual towns.

Please call one of our Mortgage Loan Representatives if you have and interest in pursuing a CHFA mortgage or visit CHFA web page for additional information. If you have any questions regarding this program, please contact one of our qualified loan officers at 203-720-5000 or
e-mail us.