As it continues its efforts to increase the affordable housing available in Lyme, the Affordable Housing Commission (AHC) has identified information on low-interest loans that could benefit individual residents seeking affordable housing – over and above any actions the Town may take as a result of the AHC’s recommendations. The AHC would like to share this information with area residents and organizations interested in the issue of affordable housing:

CONNECTICUT HOUSING FINANCE AUTHORITY

  • If you are either a first-time homebuyer or someone who has not owned a home in the past three years, you may be eligible for a below-market interest rate loan through the Connecticut Housing Finance Authority (CHFA).
  • In connection with this program, you may be eligible for a further rate reduction that may be offered to qualifying veterans, military, police, teachers and people with disabilities or disabled household members.
  • In addition to below-market interest rate loans, the CHFA mortgage program may also offer a Downpayment Assistance Program (DAP) loan to help cover a down payment.
  • For details about this CHFA mortgage program, including its eligibility requirements and program limitations, please visit the CHFA website here.

US DEPARTMENT OF AGRICULTURE-RURAL DEVELOPMENT

  • Another program that promotes affordable homeownership is sponsored by the United States Department of Agriculture Rural Development (USDA-RD). This program also relies on below-market interest rate loans and a typically waived down payment.
  • In order to evaluate program limitations and determine if the USDA-RD program is a good fit for you, visit the USDA-RD website here.  Click on “Check Eligibility” at the bottom of the page and then click on “Single Family Housing Direct.” 
  • In the words of USDA-RD, “Providing these affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality of life in rural areas.”