So, we decided that it would better to own a place, rather than rent. With our one-income salary, I found sources of interest free loans (forgiven after 5 years). It required a lot of paperwork, and having good credit helped. More importantly, it helped that we made such little money as a family of 3! If I was working, we wouldn’t have been able to get any of these loans/grants. Thank you thank you to a great team at Liberty Bank. My mortgage guy was great and super quick and responsive (I think that’s the most important if you want to apply for a bazillion loans or grants). After about 3 months, we received:
- New Haven HomeLIFT: $15,000
- New Haven Livable City Initiative: $10,000
- FHLB: $15,000
A total of $40,000 in interest free “loans” that will be forgiven after living in our condo for 5 years! It was almost a crime NOT to apply for these loans and buy a home. With a down payment of $40,000, our monthly mortgage and condo fees are much less than renting! It’s really unbelievable. I think when I tell people about all this free money, a lot of them don’t even comprehend what I am saying. For instance, I texted 1 friend that I got 40k in free money for the down payment, and she responded saying something about her 401k. I didn’t clarify.
But it does raise issues like the fact that being unemployed actually HELPED us. We wouldn’t have qualified for any of these loans had we made more money. In any case, this is how we began our stay here in New Haven, CT.