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.
The program asks for
- The home is occupied as a primary residence
- Residency: Must be a current resident of New London at time of application.
- A home inside New London city limits
It doesn’t cover
- Households above 100% of area median income
- Homes outside New London
These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.
Income limit
100% of New London County’s area median income
HUD sets the area median income each year. The limit changes with household size, so a family of five has a higher limit than a single homebuyer.
Where it applies
New London’s homesNew London’s homes, and the ones this program accepts
- 30.1% single-familysingle-family
- 4.9% townhousetownhouse
- 30.3% 2–4 units2–4 units
- 34.2% 5+ unitscondo & apartment buildings (5+ units)
- 0.6% mobile & othermobile home & other
A tick marks a kind of home the program’s record lists. The agency confirms it for the home you choose.
$253,300
New London median home value
83.3%
built before 1980
U.S. Census Bureau, ACS 2024 5-year. More about buying in New London
How to apply
How to applyTwo steps, in this order
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.
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 homebuyer can take it to a lender or housing counselor.
Questions about this program
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 homebuyers who will live in the home as their primary residence. Residency requirement: Must be a current resident of New London at time of application.
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 homebuyers 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. 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.
Also for New London homebuyersOther programs open to New London homebuyers
- Southeastern Connecticut Community Land Trust - Permanently Affordable HomeownershipAssistance
- Habitat for Humanity of Eastern Connecticut Homeownership ProgramFirst mortgage
- CHFA Mobile Manufactured Home Loan ProgramUp to $150,000
Whether two programs can be combined is up to each agency. Ask before you apply.
All 82 programs for New LondonProgram terms are set by City of New London Office of Development & Planning, Community Development Division and can change; confirm on the official site before you apply.