Downpayment Assistance Program (DAP)
Connecticut Housing Finance Authority (CHFA)
Amount: Second mortgage loan of $3,000 minimum up to $15,000 maximum, capped at 4.00% of the sales price or appraised value (whichever is less), and cannot exceed the minimum down payment required (typically 3%-3.5% of purchase price). Interest rate equals the first mortgage rate or 5.00% (5.10%-5.50% APR), whichever is less — it is a repayable loan, not a grant.
Type: Repayable second-mortgage loan (not forgivable)
Must first apply and qualify for a CHFA first mortgage through a CHFA-Participating Lender; must meet CHFA's income limits (vary by household size/location, roughly $88,200-$141,000 range per secondary sources) and CHFA sales price limits (roughly $349,525-$750,000 depending on area); must be a first-time homebuyer or not have owned a home in the past 3 years (waived in federally targeted areas); minimum borrower contribution of $1,000; must demonstrate ability to repay both loans; must complete a free CHFA-approved Homebuyer Education course before closing. Minimum credit score is commonly cited around 620-640 depending on loan type, though CHFA's own DAP page does not state a specific score.
Time To Own Forgivable Down Payment Assistance Loan
Connecticut Housing Finance Authority (CHFA)
Amount: 0% interest, no monthly payment, forgivable second-mortgage loan of $3,000 minimum up to $25,000 maximum (CHFA's current program page); structured as a 10-year non-amortizing loan with 10% of the principal forgiven each year until fully forgiven at year 10. Funds can cover up to 20% of the down payment and up to 5% of closing costs. (Note: some third-party/municipal fact sheets reference higher caps up to $50,000 in designated 'High' or 'Very High Opportunity' census tracts under the State of Connecticut Opportunity Map — confirm current tiered cap with a CHFA lender, as CHFA's own webpage currently states a flat $25,000 maximum.)
Type: Forgivable second-mortgage loan (0% interest)
Must qualify for and receive a CHFA first mortgage; must be a Connecticut resident able to demonstrate continuous CT residency for the preceding 3 years; generally must be a first-time homebuyer (non-first-time buyers may qualify only in designated targeted areas, provided they own no other property at closing); subject to CHFA first-mortgage income and sales price limits; can be combined with the DAP loan; requires Homebuyer Education course completion.
CHFA First-Time Homebuyer Mortgage Program (base first mortgage, enabling access to DAP/Time To Own)
Connecticut Housing Finance Authority (CHFA), delivered through CHFA-Participating Lenders
Amount: 30-year fixed-rate first mortgage (FHA, VA, USDA, or conventional options) at CHFA's below-market interest rate; this is the required underlying loan that unlocks eligibility for DAP and Time To Own assistance above.
Type: First mortgage loan (prerequisite for down payment assistance)
Must be a first-time homebuyer or not have owned a home in the past 3 years (waived in targeted/revitalization areas); household gross income must fall within CHFA's published Income Limits (vary by town/county and household size); home purchase price must fall within CHFA's Sales Price Limits (vary by area); minimum credit score commonly reported around 620-640 depending on loan type; DTI generally 45-50%; must complete a free CHFA-approved Homebuyer Education course prior to closing; minimum borrower contribution of about 1% of purchase price.