If you’re dreaming of homeownership in New London County, Connecticut, but worried you can’t afford a big down payment — you’re not alone. The good news? You don’t always need 20% down to buy a home. In fact, there are several ways to buy a home with little or even no money down.
Whether you’re a first-time homebuyer, a veteran, or just someone trying to break into the market, this guide will walk you through real, accessible programs and strategies to help you buy a home in New London County with zero to low upfront costs.
💰 What Does “No Money Down” Really Mean?
Buying a home with no money down typically means you’re financing 100% of the purchase price—no down payment required. However, you’ll still need to budget for:
- Closing costs (which can sometimes be covered by the seller or rolled into your loan)
- Home inspections and appraisal
- Moving expenses
The goal is to minimize upfront costs, not eliminate them entirely—but there are programs designed to help.
🏡 No or Low Money Down Mortgage Options in CT
- USDA Loans – *100% Financing for Rural & Suburban Areas
The USDA Rural Development Loan is a zero-down loan backed by the U.S. Department of Agriculture. Many towns in New London County (like Salem, Colchester, Bozrah, and parts of Ledyard) qualify as “rural” under USDA guidelines.
Eligibility Highlights:
- 0% down payment
- Income limits apply (varies by household size)
- Property must be in a USDA-eligible location
- Lower mortgage insurance than FHA loans
✅ Perfect for buyers looking outside of dense city centers in more suburban or country areas.
- VA Loans – For Eligible Veterans and Military Families
If you’re a veteran, active-duty service member, or eligible surviving spouse, the VA loan offers unbeatable benefits.
Why it’s great:
- 0% down
- No private mortgage insurance (PMI)
- Competitive interest rates
- Flexible credit guidelines
With the Naval Submarine Base in Groton, many residents in New London County are eligible.
🎖️ Pro tip: Even if you’ve used your VA loan before, you may still have eligibility remaining.
- FHA Loans – As Little as 3.5% Down
While not a zero-down option, FHA loans are one of the most popular low down payment options for first-time buyers.
FHA Loan Perks:
- 3.5% down with a credit score of 580+
- More lenient credit requirements
- Down payment can be gifted by a family member
🛠️ Combine with local grants or down payment assistance (DPA) for little to no money out of pocket.
📍 New London County-Specific Down Payment Assistance Programs
🏠 Connecticut Housing Finance Authority (CHFA) Programs
CHFA offers statewide help for first-time buyers, including:
- Down Payment Assistance Program (DAP): Offers second mortgage loans for down payments and closing costs with as little as 1% interest
- Time To Own Program: Up to $50,000 in forgivable assistance for eligible buyers in CT, including parts of New London County
CHFA is ideal for:
- First-time buyers or those who haven’t owned in 3+ years
- Moderate-income households
- Buying in targeted areas (New London, Norwich, Groton, etc.)
💡 CHFA-approved lenders can help you apply and determine eligibility quickly.
🧠 Other Creative Ways to Reduce or Eliminate a Down Payment
- Ask for Seller Concessions
A motivated seller may agree to pay part (or all) of your closing costs. This frees up your cash for a down payment—or eliminates your upfront costs altogether.
- Use Gifted Funds
Down payments can often be gifted by parents, relatives, or even employers. FHA, conventional, and USDA loans allow gifted down payments with proper documentation.
- Employer or Union Assistance
Some employers in New London County—especially in education, healthcare, and public service—offer homebuyer assistance programs or matched savings accounts.
💬 Final Thoughts: Homeownership IS Within Reach
You don’t need a massive down payment to buy a home in New London County. With the right mortgage program, down payment assistance, and local guidance, you could be moving into your first home with little or no money out of pocket.
Whether you’re just starting your research or ready to get pre-approved, a trusted Realtor and lender can help you unlock the best programs available based on your unique situation.
Ready to explore your no-money-down options in New London County?
Let’s talk! I work closely with local lenders and first-time buyer specialists who can walk you through every step—from pre-approval to closing.
📩 Contact me today to schedule a free homebuyer consultation.
860-864-0209
chrismaynard@billheenan.net
chrismaynardrealestate.com
Learn more about buying or selling:
Search for your dream home
Get your free home analysis
