Housing fund helps families buy homes

March 10, 2008; As originally appeared in the News-Times

Casey Wheeler, her husband, and their 3-year-old daughter were living in a cramped one-bedroom apartment in Westchester last year when they found out twins were on the way.

"We had converted a storage closet into our daughter's nursery, but we knew the apartment wasn't going to work out for us when the twins arrived," said Wheeler, who lost her job about the same time.

"We started looking around and we were priced out of everything."

Although the couple had always wanted to own a home, they doubted they could afford anything more than a condominium with only one income.

"I would have loved to buy a house, but we didn't have much for a down payment," Wheeler said. "That's when I found out about the Housing Development Fund."

With about $5,000 in their pockets, a good credit record and the assistance of the fund, the couple purchased a home in Danbury last summer that cost just under $300,000.

"I never dreamed that we could afford a home for that much money," Wheeler said. "But the HDF removed the obstacles and made it possible They walked us through every step of the process. Having our own home has made a huge difference in our lives."

Joan Carty, president of HDF, said the organization's mission is to help low- and moderate-income people realize the dream of home ownership. The nonprofit bank, which opened an office in Danbury about three years ago, has more than $60 million at its disposal and several programs to help people with incomes below $93,000 per
Advertisement
year.

"We really want to help families who are ready for home ownership but don't realize it's within striking distance," Carty said.

She added that HDF offers several programs for individuals, including Smart Move, a down-payment assistance loan that covers 20 percent of the home's cost. The loan offers a 3 percent interest rate for a 20-year term and eliminates the requirement for mortgage insurance.

"The Smart Move program really helps to stretch someone's buying power," Carty said. The program recently helped its 100th client in the greater Danbury area.

Other programs include a $20,000 interest-free work-force housing loan, which provides down-payment assistance for people purchasing a home in the community they work in. The loan must be paid back when the home is sold or the first mortgage is paid off.

The HDF also offers a $10,000 closing-cost assistance loan, which is also interest-free and payable when the home is sold by the new homeowner.

The HDF also offers free counseling services to help potential homeowners through the purchase process.

"It's like having an advocate who is there to protect your best interests," Carty said. "Buying a home is usually the largest transaction most Americans will ever have, and we want to help people with the process."

Mark Nolan, co-chairman of the Danbury Housing Partnership, said HDF is another tool to help vulnerable buyers "who don't have the expertise to put it all together."

"The programs are very helpful for low- and moderate-income home buyers who have difficulty coming up with a down payment," he said. "They have some great tools."

Carol DeRosa, a spokeswoman for the Connecticut Housing Finance Authority, said HDF is an integral partner in its efforts to provide affordable housing.

"CHFA is pleased to have the HDF as a program partner to help us address the affordable housing needs of first-time home buyers in Fairfield County," she said.

DeRosa added that the partnership has provided first-time mortgages to 213 families in Fairfield County and loaned out more than $34 million.

Officer Steve Castrovinci of the Danbury Police Department is one of the clients served by the two agencies. Castrovinci received down-payment assistance when he decided to move to New Milford after working as a police officer in the South Bronx section of New York City.

"HDF has programs that are ideal for the first-time home buyer," he said. "Without them I probably wouldn't have been able to buy a house when I did. I love working in Danbury. It's a lot less stressful than working in the South Bronx."

Contact Dirk Perrefort at dperrefort@newstimes.com

or at (203) 731-3358.

Housing Development Fund
Programs offered for first-time home buyers
Free counseling services with action plans.
Down-payment loans with low rates for 20 percent of the purchase price.
$10,000 to $20,000 down-payment and closing-cost assistance programs.

Contact information
On the Web -- www.hdf-ct.org
By phone -- (203) 798-6527
Address -- 8 West St., Suite 202-204, Danbury