New Home/New London 2 (NHNL2)

What is New Home/New London 2 (NHNL2)?

New Home/New London 2 (NHNL2) is a deferred second loan for homebuyers in New London, Connecticut, administered by City of New London Office of Development & Planning, Community Development Division.

• New Home/New London 2 (NHNL2) provides down payment assistance to current New London residents purchasing 1-4 family homes in any New London neighborhood. Buyers with household income below 100% AMI may qualify for a $10,000 deferred loan; below 80% AMI a $15,000 deferred loan; a qualified buyer purchasing a non-owner-occupied rental property may qualify for up to $20,000. A 5-year deed restriction requires the buyer to occupy the property as primary residence; if rented or sold within 5 years, the full deferred loan is repaid from sale proceeds.
• $10,000 deferred loan under 100% AMI.
• $15,000 deferred loan under 80% AMI.
• Up to $20,000 for qualified rental-property buyer.
• Deferred loan (no monthly payments).
• Funding comes from Federal CDBG (HUD) via City of New London.

How much assistance does it provide?

New Home/New London 2 (NHNL2) offers between $10,000 and $20,000 in assistance.

• Award tiers: Under 100% AMI: $10,000, Under 80% AMI: $15,000, and Non-owner-occupied rental property: up to $20,000.
• Amounts are the program's published maximums, not an offer — City of New London Office of Development & Planning, Community Development Division determines any individual award.

Do you have to pay it back?

New Home/New London 2 (NHNL2) is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Full deferred loan repaid from sale proceeds if owner's unit is rented or property sold during 5-year deed-restriction period.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

New Home/New London 2 (NHNL2) is open to buyers who will live in the home as their primary residence.

What are the income limits?

New Home/New London 2 (NHNL2) limits household income to 100% of the area median income, which varies by county and household size.

• Below 100% AMI qualifies for $10,000; below 80% AMI qualifies for $15,000. Income proof required for all adults residing in the home.
• 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.

What kind of home can it be used for?

New Home/New London 2 (NHNL2) can be used for Single Family and 2-4 Unit.

Where does it apply?

New Home/New London 2 (NHNL2) serves buyers purchasing in New London, Connecticut.

How do you apply?

Applications for New Home/New London 2 (NHNL2) go through City of New London Office of Development & Planning, Community Development Division, which publishes the current terms and the application steps on its own site.

1. 1

   Contact City of New London Office of Development & Planning, Community Development Division to reserve funds

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

2. 2

   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.