Among government mortgages offered in Connecticut, one program geared toward rehabilitating towns and neighborhoods in the state is UR Home. Also known as the Urban Rehabilitation Homeownership Program, UR Home consists of a purchasing mortgage at below-market interest and a no-interest home improvement loan.

Unlike HERO, another effort to improve Connecticut towns and neighborhoods, UR Home can be used to purchase properties in specific areas. Any property must be located in Bridgeport, Hartford, New Haven, New London, Waterbury, or parts of Windham. Aside from this requirement, the borrower must be a state, private, or municipal employee in one of the above cities. Although the program is not restricted to first-time homebuyers, any properties previously owned by the borrower must be sold before UR Home is closed.

Similar to CHFA loans, UR Home must be applied to certain types of properties. Along with being located in one of the cities mentioned, the property should only be a year-round residence. UR Home does not apply to recreational, vacation, commercial, investment, or rental properties. The property, as well, must be a single-family home or a multi-family dwelling with no more than four units. CHFA sets sales price limits for such properties.

Restrictions, as well, are placed on home improvements. This loan portion provides $20,000 for repairs to a single-family home or $25,000 for a multi-family home on a first-come, first-serve basis. A state-licensed professional must complete all repairs within six months from closing the loan. Improvements cover structural damage, addressing safety hazards, adding handicapped accessibility, or increasing the property’s energy-efficient features, and are required to follow state and local ordinances. Funds not used must go back to CHFA.

Borrowers considering UR Home need to take into account two other aspects. The property must be inspected during the application process, and the borrower is required to speak with a CHFA counseling agency.

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