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.”