FAQs – Frequently Asked Questions about HDF’s programs

Got a question about HDF’s programs or services? We’ve answered some our your frequently asked questions (FAQs) below. Scroll down to see our answers to FAQs about multifamily development projects!

If you can’t see the answer to your question, please don’t hesitate to contact us, or get in touch using the information in the sidebar.


First-Time Homebuyers

Who's eligible for the First Time Homebuyer program (FTHB)?

Our counseling and lending program is available to income-qualified first-time homebuyers who are purchasing a home within HDF’s service area.

Income eligibility is based on the income of all adults who will live in the new home whether or not they are the borrowers. A first-time homebuyer is someone who is buying a home for the first time or who has not owned a home at any time in the last three years.

For our current income limits and service area, please click here for Connecticut and here for New York.

Can I apply for a grant instead of a loan?

No, All HDF products are loans that must be paid back. Some products require monthly payments, while others are deferred and only due when you sell or transfer the property, or refinance your first mortgage.

Is 100% financing available?

No. First time homebuyers should expect to contribute some money to the home purchase. Depending on the loan products chosen, a borrower may need to contribute to the down payment; inspections, closing costs etc. and will be required to have funds remaining in savings after closing. HDF SmartMove funds are used for up to 20% of the purchase price while a first mortgage lending partner can lend up to the remaining 80%. Generally, borrowers should expect to contribute at least 1-3% of the purchase price.

Where can I buy a home through the FTHB program?

Using HDF’s SmartMove product, you can purchase a home anywhere in Connecticut or in selected counties of New York State. To view a map of our current service area, please click here for Connecticut and here for New York.

Other lending programs have different geographic scopes – visit our FTHB page for more details, or contact us today!

What types of properties can I purchase?

As a first time homebuyer, the property you purchase must be your primary residence. You can purchase a single family home; a home with 1-4 residential units, a townhouse, or a condominium. HDF does not provide financing for mobile homes or co-ops.

I've already put in an offer on a house. Can I still use HDF?

Yes. HDF will make every effort to work with you, even with a more aggressive timeline.

Please create a profile on our online customer portal as soon as possible, AND use the “Residential Lending” option on our contact form to notify us of your status.

You will still need to complete the homeownership counseling and education process. In the case that your offer is not accepted, or you choose not to continue with the purchase, please continue the process with HDF. The next time you put in an offer, so you will be ahead of the process as you continue to move forward.

How do I apply for the FTHB program?

The FTHB program has 2 components: counseling and lending. All HDF loan borrowers must complete the counseling requirements. A borrower who submits the required documents will be assigned a counselor/adviser. They will determine eligibility & readiness and provide guidance on the loan application.

Click here to go to our FTHB page. Here you will find our Orientation Video as well as instructions on how to apply to our FTHB program.

I can't come to your offices for counseling or education. Can I still apply to the FTHB program?

Yes!You can work remotely with your homeownership adviser. Just register on HDFCompass and choose the remote counseling option. You can complete counseling and homebuyer education classes without ever setting foot in one of our offices.

For your convenience, HDF also has partnerships with a number of local housing counseling agencies. If you prefer, you can complete counseling and education with an HDF partner and still use HDF’s lending services.

Contact your preferred agency and explain that you are interested in using HDF’s lending products. To view a map with all of our partners, please click here for Connecticut and here for New York.

How long does your process take?

The length of the process largely depends on how quickly you can respond to our process requirements.

You must complete the counseling process before you can apply for lending products. Your file is not assigned to a counselor until your HDF Compass profile is complete and all documents are submitted. Once that is done, your counselor will assess your eligibility and readiness and you will be contacted within 10 days for an appointment.

Homebuyer Education is required prior to closing (8 hour Homebuyer class, Landlord class, etc.) and your schedule will determine when to complete it.

The loan application & lending process begins once the counseling process is completed. The lending process is usually completed in 30 days.

Can I apply for more than one program?

Yes. Most HDF borrowers use our SmartMove loan product. This can be combined with many of our other products, depending on your situation and eligibility.

Once you’ve created a profile on our online customer portal, you’ll schedule your first counseling session. Your homeownership counselor will let you know for which programs you might qualify and whether would benefit from layering loan products in your financing structure.

What does my credit score have to be?

HDF is not credit score driven. We do require that collections & judgements be paid & that you are currently paying accounts on-time. The HDF loan committee pays close attention to credit payment patterns and your written explanations for negative activity. The 1st mortgage lender may have a minimum or maximum required score, separate from HDF’s evaluation.

How do I pay for a credit report?

You can pay online by using our convenient payment portal. Please click here to access information and payment instructions.


Multifamily Developers

What type of commercial real estate does HDF finance?

We finance rental or homeownership properties, as well as mixed-use developments where 50% of the property’s square footage is devoted to residential.

We have financed land for the purpose of affordable housing, supportive housing, senior housing, and regular, naturally occurring affordable rental and condominium units.  We have also helped towns when their 8-30g requirements have not been met.

(See our affordability requirements)

What are the financing options for an HDF developer?

HDF offers a variety of products and services, including predevelopment loans, bridge loans, acquisition loans, renovation and constructions loans, and 30-year permanent loans.  We can finance one part of your project, or we can be your one-stop shop for a project from beginning to end.

Please contact our Senior Commercial Loan Officer Brandon Oldham at 203-969-1830 x 2012 for details.

What percentage of affordable units does HDF require?

The amount of affordable housing we require can vary, though each project must have at least 30% affordable residential housing. (See our affordability requirements)

Please contact Brandon Oldham 203-969-1830 x 2012 for details.

If you are required to comply with Section 8-30G, get in touch with Brandon Oldham to see if HDF can help!

Who does HDF work with?

HDF works with private developers, non-profit developers and organizations, government entities, and housing authorities just to name a few. We help acquire, renovate/build, and maintain all types of affordable housing with a variety of different partners.

I'm new to commercial real estate. Can HDF help?

Of course! Contact us and we can provide technical assistance to determine if this form of ownership is right for you.

If you’re a first time homebuyer looking to also become a landlord of a 2-4 unit household that you intend to live in, check out our Landlord Entrepreneurship Affordability Program.

Can I apply for HDF financing on multiple properties?

Yes! HDF can finance loans up to $5 million, and the financing can be spread among multiple properties.

Does HDF finance other property units besides multifamily (office, retail, etc.)?

Yes, but only if at least 50% of the property’s square footage is used for residential purposes.

(See our requirements)


Frequently Asked Questions
Phone

203.969.1830

Fax

203.989.0913

 

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