CT’s forgivable loan for first-time home buyers pays off with a $40 million state investment

Connecticut’s popular forgivable loans to help first-time buyers with home down payments are back.

The Time to own The program provides loans of up to $25,000 to make a down payment for eligible families. Time to Own reopened with the help of $40 million in additional government funding.

According to State Department of Housing Commissioner Seila Mosquera-Bruno, the program is not just a handout.

“The people who apply for this program are required to take their courses. They have to meet the requirement that they have the necessary creditworthiness,” said Mosquera-Bruno. “But that down payment and closing cost assistance will help them a little bit if their rent increases.”

The program was paused for about a month earlier this year when allocated funds ran out.

“The Connecticut Housing Finance Authority bridged $5 million to hold the contracts that were in process until we reached the bond commission,” Mosquera-Bruno said. “There were people in the process who did that [had] Allocated money and those who have contracts. Thanks to the bridging loan, they were able to continue the process.”

Time to Own launched in June 2022 and enjoyed great popularity as funds ran out in the fall of that year. It happened several new waves of financing and has provided down payment assistance to purchase homes to approximately 4,800 families in more than 140 communities since the program began, Mosquera-Bruno said.

The latest round of funding is expected to take Time to Own through April.

While the $40 million was approved during the State Council Special Bond Commission Meetingit was not with unanimous support.

Republican Rep. Henri Martin feared the program would increase demand for housing.

“I don’t see how it helps us continue or make Connecticut affordable,” Martin said. “We have a shortage of supply in the state of Connecticut and obviously we have more buyers out there than there are homes on the market. I see this program as a contributing factor to that demand.”

Martin also expressed a desire for more engagement and participation from homebuyers.

“I don’t see people putting the money they earn into buying a house,” Martin said. “I want everyone to have a home. But the problem is, when you give people money, it’s a little different than when you make money and spend your own money.”

State Comptroller Sean Scanlon shared a personal email during the meeting that he received from a Windsor family seeking time-to-own funding, contradicting Martin’s concerns.

“He and his young family finally thought home ownership was possible for them and they needed us to re-approve this financing to allow them to close. I won’t reveal how much he said, but they’re putting a lot of money into it,” Scanlon said.