Housing fund helps first-time buyers

August 11, 2006; As originally appeared in The Stamford Advocate

STAMFORD, Conn., Aug. 11, 2006- The Housing Development Fund, headquartered in Stamford, is matching eligible first-time buyers with condominiums in market- rate housing developments in Stamford, Norwalk and Danbury and helping with down- payments and closing costs as well.

At a recent Housing Fair held at Stamford Hospital, residents learned that a percentage of the condos in some new developments are being offered at below-market rates: Adams Mill River in Stamford, Maritime Place in the SoNo area of Norwalk and The Renaissance in Danbury. The units will range from $79,000 to $211,000, depending on size and location.

The fund works with private developers to identify and prequalify applicants interested in purchasing below-market-rate units. The fund also helps put together financing for the buyers, offering fixed- rate first mortgages, provided by its 17 commercial banking partners, along with down- payment and closing-cost assistance in the form of low- interest or no-interest loans.

The first step is to sign up for a 30-minute orientation session at the fund’s Stamford headquarters or Danbury office. Applicants complete preapplication and credit release forms and provide the necessary documentation.

If there are more qualified applicants than there are available units, a lottery will determine the priority order for the unit.

All would-be buyers are required to attend one-on-one prebuying counseling and seminar sessions and post- purchase seminars to assure that the buyers are successful with home-ownership.

All aspects of owning a home are covered: budgeting; saving for the downpayment and home maintenance; establishing and maintaining excellent credit; understanding the mortgage process; doing a home inspection; refinancing alternatives; and avoiding predatory lenders.

The fund’s programs help not only the buyers, but the developers as well, minimizing their marketing costs for the below-market-rate units and providing qualified buyers, and a smooth financing and purchase process, according to Joan Carty, executive director of the fund.

The fund, founded in 1989, now serves all of southwestern Connecticut. In addition to the First-Time Homebuyer’s Program, it also offers the SmartMove low-interest second mortgage program and the Homebuyer Education Classes, approved by the Connecticut Housing Finance Authority.

The fund is a lender and housing counseling agency, certified by the federal department of Housing and Urban Development. The nonprofit organization manages public and private partnerships to lend funds to facilitate the development of affordable housing.

In addition to the below- market-rate condo units, the fund also helps would-be home buyers purchase single- family houses, condos and multifamily houses available on the open market.