Chapter 4 CHFA & All Connecticut Homebuyer Assistance Programs
Home • Chapter 1: Market • Chapter 2: Property Types • Chapter 3: Financial Ready • Chapter 4: CHFA Programs • Chapter 5: Dream Team • Chapter 6: Searching • Chapter 7: Offers • Chapter 8: Inspections • Chapter 9: Financing • Chapter 10: Closing • Chapter 11: Moving In • Chapter 12: Special Types • Chapter 13: Green Perks • Chapter 14: Post-Closing • Chapter 15: Wealth • Resources • Glossary
Where Connecticut Buyers Get Their Biggest Edge
This is where Connecticut buyers gain their biggest financial advantage in 2026.
Many first-time buyers assume they need 10–20% down to purchase a home, but Connecticut offers several programs that dramatically reduce that requirement.
Through the Connecticut Housing Finance Authority (CHFA) and partner housing programs, eligible buyers can access:
• Below-market mortgage interest rates
• Down-payment assistance loans
• Forgivable assistance that disappears over time
• Programs that allow as little as 1% of your own money down
In some cases, buyers receive $25,000 to $50,000 in assistance, significantly lowering the financial barrier to homeownership.
As of March 12, 2026, most major assistance programs remain fully funded and accepting applications.
Understanding how these programs work can mean the difference between waiting years to buy a home and buying this year.
1. Time To Own
Connecticut’s Largest Forgivable Assistance Program
The Time To Own program is currently the most powerful homebuyer assistance program available in Connecticut.
It provides forgivable down-payment assistance, meaning the money gradually disappears if you remain in your home long enough.
Current Funding
As of March 9, 2026, the program still has approximately:
$35,575,691 available
Funding levels are updated weekly on the CHFA website.
What the Program Provides
Eligible buyers can receive:
• 0% interest assistance loan
• No monthly payments required
• Funds for both down payment and closing costs
Maximum assistance levels:
• Up to 20% of the purchase price for down payment
• Up to 5% for closing costs
Program limits:
• Up to $50,000 in High or Very High Opportunity Areas
• Up to $25,000 in other areas
Minimum loan amount: $3,000
The program must be paired with a CHFA first mortgage.
Forgiveness Structure
The most powerful feature of Time To Own is the forgiveness schedule.
Each year you remain in the home:
10% of the loan balance is forgiven
After 10 years, the entire loan is eliminated.
This means buyers who stay in their homes long enough never have to repay the assistance.
Example
Purchase price: $400,000
Time To Own assistance: $40,000
If you stay in the home for 10 years:
The entire $40,000 is forgiven.
If you sell after five years, roughly half the balance would remain.
Steve’s Tip
This is currently the strongest assistance program available in Connecticut.
Check the CHFA Opportunity Areas Map, because many towns in:
• Northwest Hills
• Naugatuck Valley
• Northeastern Connecticut
qualify for the higher $50,000 assistance limit.
These areas often combine lower home prices with higher assistance levels, creating an ideal opportunity for first-time buyers.
2. Down Payment Assistance Program (DAP)
The Down Payment Assistance Program, commonly called DAP, provides an additional financing option for buyers who need help covering upfront costs.
DAP is structured as a low-interest second mortgage.
Key Features
• Interest rate: approximately 1%
• Helps cover down payment and closing costs
• Typically available up to $15,000
Unlike Time To Own, DAP is not fully forgivable, but its extremely low interest rate makes it one of the most affordable forms of assistance available.
Many buyers combine DAP with a CHFA mortgage to significantly reduce their out-of-pocket expenses.
Funding levels and availability are updated weekly on chfa.org.
3. SmartMove Connecticut
The 1% Down Payment Option
The SmartMove program is offered through the Housing Development Fund.
Although it is not operated directly by CHFA, many lenders work with both programs simultaneously.
SmartMove allows buyers to purchase a home with as little as 1% of their own funds.
How It Works
SmartMove provides:
• A low-interest second mortgage
• Assistance up to 25% of the purchase price
This second loan covers most of the down payment and closing costs, leaving buyers responsible for only a small portion of the purchase price.
For buyers with stable income but limited savings, this program can make homeownership possible much sooner.
4. Special Targeted Assistance Programs
In addition to its major statewide programs, CHFA also offers specialized assistance designed for specific groups.
These programs often provide extra benefits or enhanced assistance limits.
Teachers Mortgage Assistance Program
Helps teachers purchase homes in Connecticut communities where educators are needed.
Benefits may include:
• Down-payment assistance
• Reduced interest rates
• Additional eligibility flexibility
Police Homeownership Program
Supports police officers purchasing homes in the communities they serve.
Programs may include:
• Assistance for down payments
• Reduced mortgage rates
• Incentives for community residency
Veterans and Military Service Members
Veterans may combine VA loans with state assistance programs.
Benefits may include:
• 0% down payment mortgages
• No mortgage insurance requirements
• Additional down-payment assistance
Home of Your Own Program
Designed for buyers with disabilities.
This program offers:
• Specialized mortgage assistance
• Accessibility improvement funding
• Financial counseling and support
Public Housing Resident Homeownership
Residents of public housing developments may qualify for programs that help transition from renting to ownership.
These programs provide:
• Down-payment assistance
• Financial counseling
• Mortgage support
Manufactured Home Loan Program
CHFA also offers dedicated financing for buyers purchasing manufactured homes on owned land.
These loans provide:
• Competitive interest rates
• Lower down-payment requirements
• Specialized underwriting for manufactured housing
How to Qualify for CHFA Programs (2026)
Although each program has its own details, most CHFA programs follow similar eligibility guidelines.
You typically must:
• Be a first-time homebuyer
• (defined as not owning a home in the past three years)
Exceptions exist for:
• Veterans
• Certain disabled buyers
Additional requirements include:
• Completing a HUD-approved homebuyer education course
• Meeting income limits based on household size
• Purchasing a home within program price limits
Income and purchase limits vary by town, but the CHFA Resource Map allows buyers to check eligibility instantly.
Credit and debt-to-income requirements are often more flexible than conventional bank mortgages, making these programs accessible to a wider range of buyers.
Printable Checklist
Applying for CHFA Assistance
Before applying, complete these steps:
□ Complete a HUD-approved homebuyer education course
□ Review income and purchase limits using the CHFA Resource Map
□ Contact a CHFA-participating lender for pre-approval
□ Compare available programs (Time To Own is usually the strongest option)
□ Gather income documentation, bank statements, and tax returns
□ Review estimated monthly payment with assistance included
Steve’s Final Tip
Start with the CHFA website and the Resource Map.
By entering a property address, the tool shows exactly which programs apply to that location and what assistance you may qualify for.
As of March 2026, the Time To Own program still has tens of millions of dollars available, but funding levels can change quickly.
Buyers who complete their education course and obtain pre-approval early often secure assistance before funds run out.
Taking these steps this week could put you months ahead of other buyers.
You now have access to every major Connecticut homebuyer assistance program and their current funding levels.
Next, turn to Chapter 5, where we build your home-buying Dream Team — including the buyer’s agent and real estate attorney required for every Connecticut closing.
