Middletown Down Payment Assistance Program

What is Middletown Down Payment Assistance Program?

Middletown Down Payment Assistance Program is a deferred second loan for homebuyers in Middletown, Connecticut, administered by City of Middletown (Community Development) / Liberty Bank.

• A City of Middletown program, administered by Liberty Bank, that helps longtime Middletown renters become first-time homeowners in the city. Eligible buyers may receive a down payment loan of up to $10,000 with no payments due for five years, plus a closing-cost grant of up to $3,000. Applicants must have lived in Middletown at least three years, be first-time buyers, meet income limits, and buy a home located in Middletown.
• Up to $10,000 down payment loan with no payments for 5 years.
• Up to $3,000 closing-cost grant.
• Free four-session homebuyer seminar and counseling.
• May use Liberty Bank or any lender.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from U.S. Department of Housing and Urban Development (CDBG/HOME via City of Middletown).

How much assistance does it provide?

Middletown Down Payment Assistance Program offers up to $13,000 in assistance.

• Award tiers: Down payment: up to $10,000 deferred loan (no payments for 5 years). Closing costs: up to $3,000 grant.
• The program can be combined with CHFA first mortgage / other first-mortgage products.
• Amounts are the program's published maximums, not an offer — City of Middletown (Community Development) / Liberty Bank determines any individual award.

Do you have to pay it back?

Middletown Down Payment Assistance Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Deferred loan; no payments due for five years (silent second on down payment portion).
• The assistance is recorded in Second position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Middletown Down Payment Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Middletown Down Payment Assistance Program sets its income limit as follows: Low- or moderate-income HUD limits apply; specific dollar figures confirmed by program staff at application.

• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Where does it apply?

Middletown Down Payment Assistance Program is a federal program, so it is not limited to Connecticut.

How do you apply?

Applications for Middletown Down Payment Assistance Program go through City of Middletown (Community Development) / Liberty Bank, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Liberty Bank four-session homebuyers seminar plus one-on-one counseling; other HUD-approved education accepted.

2. 2

   Contact City of Middletown (Community Development) / Liberty Bank to reserve funds

   Funds are reserved with the provider and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.