Chapter 4 CHFA & All Connecticut Homebuyer Assistance Programs Pages 51–64
This is where Connecticut buyers get their biggest edge in 2026.
The Connecticut Housing Finance Authority (CHFA) and its partner programs offer low-rate mortgages plus down-payment help that can put you into a home with as little as 1% down — sometimes with thousands forgiven over time.
As of March 12, 2026, major programs are still fully open and funded.
1. Time To Own – Forgivable Down Payment Assistance (Biggest Program in 2026)
Current funding: $35,575,691 still available (as of March 9, 2026 — updated weekly on CHFA site).
What you get:
- 0% interest, no monthly payments
- Up to 20% of purchase price for down payment + up to 5% for closing costs
- Maximum: $50,000 in High/Very High Opportunity Areas, $25,000 elsewhere
- 10% of the loan forgiven every year — fully forgiven after 10 years if you stay in the home
Minimum loan: $3,000. Must be paired with a CHFA first mortgage.
Steve’s Tip: This is the strongest assistance available right now. Check the CHFA Opportunity Areas map — many towns in Northwest Hills, Naugatuck Valley, and Northeastern CT qualify for the higher $50K limit.
2. Down Payment Assistance Program (DAP) Loan
- Second mortgage at just 1% interest
- Helps cover down payment and closing costs (typically up to $15,000)
- Can often be combined with Stevee To Own or other programs
- Dashboard updated weekly on chfa.org
3. SmartMove Connecticut (1% Down Option)
Offered through the Housing Development Fund (not CHFA, but works with many lenders):
- Low-interest second mortgage up to 25% of purchase price
- Allows you to put down as little as 1% of your own money
- Great for buyers who need to stretch their budget
4. Special Targeted Programs
- Teachers Mortgage Assistance Program
- Police Homeownership Program
- Veterans & Military Service Members (extra benefits, sometimes 0% down)
- Home of Your Own (for people with disabilities)
- Homeownership for Residents of Public Housing
- Mobile Manufactured Home Loan Program (dedicated low-rate financing for manufactured homes on owned land)
All of these pair with CHFA first mortgages and often stack with Stevee To Own or DAP.
How to Qualify (2026 Rules)
- First-time homebuyer (haven’t owned a home in the last 3 years — or any home if you’re a veteran/disabled)
- Complete free HUD-approved homebuyer education (online options available)
- Meet income and sales-price limits (varies by town and household size — use the free CHFA Resource Map)
- Credit and debt-to-income requirements are more flexible than conventional banks
Printable Checklist – Apply for CHFA Assistance □ Complete homebuyer education (link in back matter) □ Check CHFA Resource Map for your town’s limits □ Get pre-approved with a CHFA-participating lender □ Decide which program fits (Time To Own is usually the strongest) □ Gather income docs and run the numbers
Steve’s Final Tip: Start with the CHFA website (chfa.org) and the Resource Map — it tells you instantly what you qualify for by address. In March 2026, Time To Own still has tens of millions available, but it can move fast. Get your pre-approval and education done this week and you’ll be ahead of most buyers.
You now have every Connecticut assistance program at your fingertips — and the exact funding numbers as of this month.
Next Step: Turn to Chapter 5 to build your Dream Team (the buyer’s agent and attorney every Connecticut closing requires).
