City of New Britain HOME Ownership Program (HOP)

City of New Britain HOME Ownership Program (HOP) is a second mortgage for homebuyers in New Britain, Connecticut, administered by City of New Britain, Department of Planning & Development (Commission on Community & Neighborhood Development). The City of New Britain uses HUD HOME funds to provide a second-mortgage loan to qualifying first-time homebuyers purchasing an existing or newly constructed 1-4 family property in New Britain. Funds may be used for down payment and non-prepaid closing costs. Second mortgage at a fixed 3% interest rate with no prepayment penalty for down payment and non-prepaid closing costs. Funding comes from Federal HUD HOME Investment Partnerships funds.

City of New Britain HOME Ownership Program (HOP) provides assistance worth 20% of the purchase price, as set by the program. Amounts are the program's published maximums, not an offer — City of New Britain, Department of Planning & Development (Commission on Community & Neighborhood Development) determines any individual award.

City of New Britain HOME Ownership Program (HOP) is a second mortgage and is repaid under the terms set by City of New Britain, Department of Planning & Development (Commission on Community & Neighborhood Development). Repayment is triggered by Sale of the property within the affordability period triggers recapture/repayment of all or a portion of HOME assistance. The assistance is recorded in subordinate position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

City of New Britain HOME Ownership Program (HOP) is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time homebuyer" usually means not having owned a home in the last three years, but the program sets its own definition. A homebuyer education course is required. Minimum loan $1,000 per dwelling unit; maximum HOP loan is 20% of purchase price plus non-prepaid closing costs; minimum monthly payment $30. Maximum CLTV 100% without closing cost assistance, 105% with closing cost assistance. Cannot be used for prepaid interest, taxes, hazard/mortgage insurance first-year premiums, or escrows. Home and pest inspections required; property must meet City Building Code at closing with no code violations. Multi-family properties subject to HUD rental restrictions and no tenant displacement. Recapture restrictions apply: borrower agrees to repay all or a portion of HOME assistance if the property is sold within the affordability period. For multi-family (up to 4 units), income may exceed 80% AMI if 51% of units are occupied by households below 80% AMI. Income limits subject to annual change.

City of New Britain HOME Ownership Program (HOP) limits household income to 80% of the area median income, which varies by county and household size. Single-family purchasers must have income less than 80% of area median income for the New Britain area. Sample income limits (subject to annual change): 1 person $62,600; 2 $71,550; 3 $80,500; 4 $89,400; 5 $96,600; 6 $103,750. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

City of New Britain HOME Ownership Program (HOP) serves homebuyers purchasing in New Britain, Connecticut.

Applications for City of New Britain HOME Ownership Program (HOP) go through City of New Britain, Department of Planning & Development (Commission on Community & Neighborhood Development), which publishes the current terms and the application steps on its own site. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.