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October 20, 2019Cart

Business

by Fairfield County Business Journal
by FCBJ

Connecticut Housing Finance Authority sets three bond sales

The Connecticut Housing Finance Authority (CHFA) has revved up its bond issuances with three back-to-back sales scheduled for this week, part of an effort to help finance first-time homebuyers and to stimulate the development of affordable housing.

In the first sale, CHFA is offering $123 million Series B Bonds on April 23. These bonds are rated AAA and Aaa by S&P Global and Moody’s Investor Service. Also on April 23, CHFA is issuing $100 million of Series C Bonds, which will be bought by TD Securities. Closing for both series is expected in early May.

On April 24, the CHFA will be offering $118 million in tax-exempt bonds that are expected to be rated AAA and Aaa by S&P Global and Moody’s Investor Service. These bonds will support increasing demand from first-time homebuyers. The CHFA noted that its current home mortgage interest rate range of 3.625% to 3.825% for the 1-point option was considerably lower than the current average conventional rate of 4.17%.

“In a state like Connecticut, finding an affordable home can be a challenge,” said Karl Kilduff, CHFA’s executive director. “CHFA’s below-market interest rate mortgages give borrowers greater buying power, which can be the difference between buying and not buying a home, or enable a first-time buyer to purchase a larger home than they could afford with higher interest rates.”