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Connecticut Mortgage Programs

What to Know Before Buying a Home in Connecticut

Although buying a home is an exciting step, it’s really challenging to navigate the housing market and align your finances. The purchasing and offer process varies state to state, which is why it’s important to work with a mortgage lender that has experience across multiple states. Here are some of the differences to be aware of when shopping for a home in Connecticut.

Property Values Are on the Rise

From the industrial bustle of Hartford and Bridgeport to the idyllic farmland of Litchfield County, Connecticut has something for every type of home buyer, whether that be an urban multi-family home or a restored farmhouse. Southern Connecticut’s proximity to New York City raises its property values accordingly; The average home value increased by 8.9% in 2020, and is expected to increase statewide by 10% in the coming year.

Banks vs. Mortgage Brokers

While Connecticut’s urban centers have no shortage of mortgage brokers, banks are the rule in more rural areas. Blue Water Mortgage can offer a tailored, full-service experience no matter where you are looking to buy.

Know Connecticut Taxes

Connecticut has the third-highest property tax rate in the country at 2.24%. While there is no transfer tax on properties below $2.5 million, any property that exceeds that sale price carries a 2.25% transfer, or conveyance, tax.

Interested in talking through the home buying process in greater detail? Let’s chat.

A Connecticut Mortgage: A Great Real Estate Investment

Buying a home is a big decision, but a Connecticut home backed by a Connecticut mortgage could be the best choice for you. Diverse in landscape and culture, Connecticut is known for offering not only a city lifestyle with friendly suburbs, but also farmland areas that feature that small-town feel everyone can enjoy.

As the southernmost state in New England, the Constitution State reaps the benefits of being both within earshot of major metropolitan hubs like New York City and Boston, as well as being a short jaunt from the ocean and mountains. Within its compact borders are Ivy League schools, modern expressways, small farmlands and large corporate office blocks that serve as hubs of innovation and commerce.

And because Connecticut is such a thriving center of business and industry, people as a result want to call it home. A healthy manufacturing sector, not to mention solid reputation as “the insurance state,” means jobs are in no short supply. The fact that it boasts the highest per capita income means its residents can afford it’s higher than average property tax rate and home prices. The state school system is solid, as are the many private and religious schools and universities spread throughout.

With a new home in Connecticut, you get more than just proximity to bustling cities, quaint towns, open space, top-tied education, and great job opportunity. Enlisting a Connecticut mortgage to live in the comforts of the Constitution State allows you to take advantage of various state-specific homeownership benefits and incentives.

Connecticut Products and Programs

No matter which program you choose to explore, Blue Water Mortgage is proud to provide timely communication, expert advice and the personal touch of a local, owner-operated brokerage. With over 150 years of collective credit-based mortgage experience, we have the knowledge to find the best Connecticut mortgage for you — your dream home is within reach. Let’s get started.

Refinancing – When homeowners take out a new home loan to replace their existing one (to help reduce monthly payments and gain long-term savings), the new loan pays off the initial loan.


Common Loans

Fixed Rate – Fixed Rate mortgage loans are predictable payments because they maintain a fixed interest rate for the entire life of the loan, as opposed to loans where the interest rate may be adjusted.

First Time Home Buyers – We’re happy to help guide you through a transparent and predictable mortgage process.

Conventional Mortgage Loans in CT – Conventional loans are most common, private-sector loans that are not government-backed but follow guidelines set by Fannie Mae and Freddie Mac.

Non-Conventional – These loans cater to borrowers who may have been rejected for a conventional loan due to self-employment, bankruptcy or unsteady employment history.

Adjustable Rate – This mortgage has an adjustable interest rate, which might allow a buyer to start with a lower monthly payment.


Low Down Payment & Government Loans

Low Down Payment – These government-backed loans only require a 3.5% down payment, even for borrowers with less-than-perfect credit.

FHA – These loans are more forgiving for people with lower credit scores – and are designed to help borrowers who might not qualify for conventional loans.

FHA 203K – This government loan is flexible for fixing up homes with deferred maintenance.

VA – Veterans mortgages are like a conventional loan, but with specific benefits for veterans such as no down payment, no cash reserves and no application fee.

USDA – These rural home loans have low rates, no down payment and are designed for borrowers who purchase homes in communities of less than 20,000 people.

Home Loans for Bad Credit – Clear lingering credit history issues and discover a mortgage option that suits your financial situation.


Additional Loans

Jumbo – A Jumbo loan is a mortgage exceeding the conforming lending limit of Fannie Mae or Freddie Mac, which in most areas is $417,000.

Non-Owner Occupied – If you are purchasing a property that will not be your primary residence with between one and four units, you may face more red tape since it has a higher risk of default.

HELOC – A home equity line of credit, often thought of as a second mortgage, allows the dispersal of the loaned funds at any time the borrower chooses, instead of all at once like a traditional mortgage.

Home Improvement – Whether you’re looking to renovate, remodel or increase the value of your home, this program can help get the job done.

Police & Firefighters – Serving as a first responder in the community can help secure optimal terms on a home mortgage loan.

Why Blue Water Mortgage?
No Surprises
No Surprises
With over 150 years of collective experience, our mortgage brokers have seen it all. This level of expertise enables us to anticipate and quickly resolve any issues that might arise and close on time, every time.
Personalized Services
Personalized Services
Buying a home is one of the biggest purchases you’ll make in your entire life. That’s why our brokers are available via phone 24/7 to address any concerns or answer any questions you might have about the mortgage process.
Competitive Rates
Competitive Rates
Blue Water is locally owned, so we aren’t beholden to banks. That means we’re able to offer a more diverse portfolio of mortgage products tailored to your specific needs, as well as more competitive rates and lower closing costs.
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