CHFA Programs, Down Payment Help & New Tax Breaks

Section I: Introduction: Why 2026 Is the Best Year in a Decade to Buy Your First Home in Connecticut

It is a cold but sunny morning in February 2026. A young couple stands on the front porch of a modest colonial in Torrington, keys in hand, smiling nervously as they open the door to their very first home. Inside, the smell of fresh paint lingers. Outside, snow dusts the yard. For the first time, they are not just renting — they own something real.

This scene is playing out more and more across Connecticut right now. And if you are a first-time buyer, 2026 may be the best opportunity you will see in the next ten years.

I’m Steve Schappert. For the last 45 years I’ve been the “answer man” for thousands of first-time buyers — helping them navigate CHFA programs, find the right home, negotiate the deal, and sometimes even renovate or build from the ground up. I still answer my own phone at 860-880-0597. I still drive every property myself. And after four and a half decades, I can tell you with absolute certainty: 2026 is one of the strongest windows for first-time buyers we’ve had since 2021.

Interest rates have stabilized in the mid-5% to low-6% range. Inventory is finally breathing again. CHFA’s Time To Own forgivable down payment assistance is still very much alive and well. And new 2026 tax-deductible homebuyer savings accounts are giving people extra ways to save for that down payment.

This is the year the pendulum has swung back in favor of the first-time buyer.

This complete 2026 guide was written specifically for you — the first-time buyer who wants to do it right the first time. Whether you are a young professional saving every paycheck, a couple starting a family, or someone finally ready to stop renting, this is the most practical, up-to-date resource you will find.

In the pages ahead you will get:

• The full, current breakdown of every CHFA program available in 2026 (including exactly how much forgivable assistance you may qualify for — up to $25,000+)
• Step-by-step explanation of the new tax-deductible homebuyer savings accounts
• Clear income limits, credit requirements, and realistic affordability examples
• The exact process from pre-approval to closing day in Connecticut’s attorney-review system
• The towns and neighborhoods where first-time buyers are having the most success right now
• The 10 most common (and expensive) mistakes I’ve watched first-time buyers make — and exactly how to avoid every one of them
• Real success stories from buyers I helped close in 2025 and early 2026

Whether you are aiming for a starter home under $400,000 or stretching toward a larger property with CHFA help, this guide will give you the confidence and knowledge you need.

 

Thinking of buying your first home in Connecticut this year? I’ll help you personally — no obligation, no pressure. Text or call me directly at 860-880-0597. I still answer my own phone, and I will guide you every step of the way.

Let’s make 2026 the year you finally stop renting and start owning.

Welcome to the beginning of your homeownership journey in Connecticut.

Last updated February 18, 2026 — Time To Own funding moves fast; text me for today’s exact remaining amount.

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A young couple celebrating with their realtor after closing on their first home

helloprenup.com Happy Homeowners Stock Illustrations – 128 Happy Homeowners Stock Illustrations, Vectors & Clipart – Dreamstime

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Section II: The 2026 First-Time Homebuyer Market Snapshot

It is February 17, 2026. A first-time buyer sits at my kitchen table in Thomaston, papers spread out, coffee in hand, eyes wide with cautious excitement. For the first time in years, the numbers are finally lining up in her favor.

This moment is happening more frequently across Connecticut right now — and if you are a first-time buyer, 2026 may be the strongest opportunity you will see in the next decade.

The Current Market Reality for First-Time Buyers

• Connecticut statewide median home price (January 2026): $449,100 — up 7.6% from last year, but the rapid price spikes of 2022–2024 have clearly slowed.
• Inventory is finally improving. After years of extreme shortages, we are seeing 15–20% more homes available than during the peak frenzy.
• Interest rates have stabilized in the mid-5% to low-6% range. CHFA programs are offering even better rates for qualified first-time buyers.
• The Hartford metro area was just named the #1 hottest housing market in America by Zillow for 2026. That momentum is already creating spillover opportunities in nearby towns.

For first-time buyers, this combination is powerful: prices are no longer skyrocketing every month, inventory is breathing again, and the state’s strongest buyer assistance programs remain fully funded.

Why First-Time Buyers Have a Genuine Advantage Right Now

2026 is the first year since 2021 where a prepared first-time buyer can actually negotiate. Sellers who waited out the high-rate period are listing again. Some are willing to help with closing costs or make concessions on repairs.

CHFA’s Time To Own forgivable down payment assistance is still very much alive, with millions remaining available. Many buyers are qualifying for $15,000 to $25,000+ in money that does not have to be repaid if you stay in the home for the required period.

On top of that, new 2026 tax-deductible homebuyer savings accounts give you another powerful tool to save for your down payment with pre-tax dollars.

The Bottom Line for 2026

Yes, prices are higher than they were five years ago. But when you combine the buyer assistance programs, slower price growth, and improving inventory, a first-time buyer with stable income and decent credit has more realistic paths to homeownership right now than they did in 2022, 2023, or 2024.

The window is open — but it will not stay open forever. As the Hartford market continues its #1 ranking and spring buying season arrives, competition will increase again.

This is why I tell every first-time buyer who reaches out: “If you are serious about buying in 2026, the time to get serious is now — not when everyone else wakes up in April.”

Thinking about buying your first home this year? I’ll help you personally — no obligation, no pressure. Text or call me directly at 860-880-0597. I still answer my own phone, and I will walk you through exactly what you qualify for under the current CHFA programs.

The numbers are better than they have been in years. The assistance is still strong. The opportunity is real.

Let’s make 2026 the year you stop renting and start owning.

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Section III: CHFA Programs Explained – Everything You Need to Know in 2026

Let me tell you about a moment I see almost every week in 2026.

A young couple sits across the table from me. She’s a teacher, he’s a nurse. They’ve been renting for six years, saving every extra dollar, and they’re exhausted from watching rents climb while home prices felt out of reach. Then I slide the CHFA paperwork across the table and show them the Time To Own numbers. Their eyes widen. For the first time, owning a home doesn’t feel like a dream — it feels possible.

This is the quiet power of Connecticut’s CHFA programs right now. They remain some of the strongest first-time buyer assistance programs in the country.

Time To Own Down Payment Assistance – The True Game Changer

This single program has helped more first-time buyers cross the finish line in the last two years than almost anything else.

How it works in 2026:

• You can receive up to the lesser of $25,000 or 3% of the purchase price as forgivable assistance.
• The money goes toward your down payment and/or closing costs.
• It is forgivable — you do not pay it back as long as you live in the home as your primary residence for the required period (usually 5–10 years).

As of mid-February 2026, more than $37 million remains available. Many buyers I work with are qualifying for $18,000 to $25,000+ in assistance that never has to be repaid.

I watched one couple last month use $22,400 in Time To Own assistance on a $419,000 home in Harwinton. Their total cash needed at closing was just $16,800. They went from believing they would rent for another five years to owning their own home in under 50 days.

CHFA First Mortgage Programs

CHFA offers several flexible first-mortgage options that pair perfectly with Time To Own:

• CHFA Preferred – Best rates for buyers with solid credit.
• CHFA SmartStep – Designed for buyers with slightly lower credit scores.
• CHFA FirstStep – Especially helpful for very low down payment scenarios.

These mortgages can be combined with Time To Own assistance, often allowing qualified buyers to purchase with as little as 3–3.5% total down payment.

The New 2026 Tax-Deductible Homebuyer Savings Accounts

This is one of the biggest new advantages for 2026:

• You can now contribute to a special tax-deductible savings account dedicated to your down payment.
• Contributions reduce your taxable income.
• The money can be withdrawn tax-free for your down payment and closing costs when you buy your first home.

Many of my clients are using this new tool alongside Time To Own to build their down payment faster and with less tax burden.

Income Limits, Credit Requirements & Other Key Details (February 2026)

Income Limits (most common counties):

• Litchfield & Hartford County: $98,000 (1–2 people) | $112,700 (3+ people)
• Fairfield County: Higher limits ($115,000–$132,000+ depending on household size)

Credit Score:

• Most programs require a minimum of 620–640
• Lower scores may still qualify under SmartStep

Other Requirements:

• You must complete a CHFA-approved homebuyer education course (simple, usually online)
• The home must be your primary residence

Real Example from This Month

Last week I worked with a 31-year-old single teacher earning $68,000 annually.

• Home price: $398,000 in Torrington
• CHFA mortgage rate: 5.375%
• Time To Own assistance: $19,900 (forgivable)
• Total cash she needed at closing: $14,200

She went from thinking she would rent for another 5–7 years to owning her own home in under 47 days.

First-time buyer smiling after closing on her first home with CHFA help

My Honest Advice After Helping Thousands of First-Time Buyers

The biggest mistake I see is waiting too long. Many people assume “I’ll wait until rates drop more.” The problem is that when rates drop, demand usually surges and prices rise.

2026 gives you a rare combination: reasonable rates, strong assistance programs that are still fully funded, improving inventory, and new tax advantages. This window is open right now.

Thinking about buying your first home in Connecticut in 2026? I’ll help you personally — no obligation, no pressure. Text or call me directly at 860-880-0597. I still answer my own phone, and I will run your exact numbers under the current CHFA programs to see exactly what you qualify for.

You don’t have to figure this out alone. Let’s see what’s possible for you this year.

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Section IV: Step-by-Step: The First-Time Homebuying Process in Connecticut 2026

You’ve done the research. You’ve run the numbers. You know CHFA programs can make this possible.

Now comes the part that actually gets you the keys.

Here is the exact step-by-step process I walk every first-time buyer through in 2026 — the same proven path that has helped thousands of my clients successfully buy their first home in Connecticut.

First-time buyers meeting with their lender for pre-approval

Step 1: Get Pre-Approved (Do This First — Week 1)

This is the single most important step. Nothing else matters until you have a pre-approval letter in hand.

Contact a CHFA-approved lender (I’ll give you my top three that close smoothly in Litchfield and Hartford counties). Gather your documents: last two paystubs, last two years’ tax returns, bank statements, and photo ID. Be honest about all income and debts.

In 2026, many first-time buyers are qualifying with as little as 3–3.5% down when combining a CHFA mortgage with Time To Own assistance.

Pro Tip from 45 Years of Experience: Get pre-approved before you fall in love with any house. It protects your heart and your wallet.

Step 2: Choose the Right Town & Neighborhood (Week 1–2)

Not every town is equal for first-time buyers.

We look at median prices in your budget range, school quality (even if you don’t have kids yet — it affects resale), commute times, property taxes, and future growth potential.

I always show my first-time buyers a shortlist of 3–5 towns that match their lifestyle and budget. In 2026, the strongest value areas for first-timers are New Milford, Torrington, Thomaston, Plymouth, and parts of Harwinton.

Step 3: House Hunting – The Fun Part (Weeks 2–4)

Once pre-approved, we start touring homes.

I personally drive every property before I show it. I know which ones have hidden septic issues, which streets flood in spring, and which neighborhoods have the best resale history.

We typically look at 8–15 homes before writing an offer. In 2026 the market is balanced enough that you don’t have to rush and overpay.

Step 4: Making an Offer & Negotiation (Week 4–5)

We write a clean, strong offer on the standard Connecticut purchase agreement.

In 2026, many sellers are more willing to negotiate than they were in 2023–2024. We often ask for seller concessions toward closing costs or repairs based on inspection.

Step 5: The Attorney Review Period – Your Connecticut Superpower (3–5 Business Days)

This is one of the best buyer protections in the country.

Once the offer is accepted, both sides have 3–5 business days for attorneys to review and negotiate. This is when we can still strengthen contingencies for inspection, financing, and appraisal.

I’ve seen buyers save $15,000–$40,000 during this window in 2026.

Step 6: Inspections That Actually Matter (Days 10–20)

In Connecticut, especially outside major suburbs, you must be extra careful.

We always order:

• Full home inspection
• Septic inspection (critical in rural areas)
• Well water test (bacteria, nitrates, arsenic, radon)
• Radon test

I have a short list of inspectors I trust who know Litchfield and Hartford County soil and old homes.

Home inspector performing a thorough inspection on a first-time buyer property

Step 7: Appraisal & Underwriting (Days 15–35)

The lender orders an appraisal to confirm the home is worth the contract price.

CHFA loans are straightforward if the file is clean. My recommended lenders close most first-time buyer files in 30–45 days total.

Step 8: Closing Day – You Get the Keys

Closing happens at the buyer’s attorney’s office (usually in Torrington, Litchfield, or New Milford).

You’ll sign a stack of documents, hand over your certified funds, and walk out with the keys to your first home.

I still sit at every closing with my clients — it’s one of my favorite parts of the job.

First-time buyers receiving the keys to their new home on closing day

Step 9: The First 30 Days After Closing

We make sure utilities are transferred, the grand list is updated for taxes, and you have your new homeowners insurance binder.

I send every first-time buyer a “First 30 Days Checklist” so nothing falls through the cracks.

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The Entire Process Usually Takes 45–60 Days from accepted offer to keys in hand when everything goes smoothly.

Thinking about buying your first home in 2026? I’ll guide you personally — no obligation, no pressure. Text or call me directly at 860-880-0597. I still answer my own phone, and I will walk you through every single step.

You don’t have to figure this out alone.

Let’s make 2026 the year you finally own your first home in Connecticut.

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Section V: The Best Towns & Neighborhoods for First-Time Buyers in 2026

You’ve learned the programs. You’ve seen the process. Now comes the most exciting part: deciding where to plant your first roots in Connecticut.

After helping thousands of first-time buyers over 45 years, I can tell you this with confidence: the “best” town isn’t the one with the fanciest name or the highest price tag. It’s the one where your money goes the farthest, where you feel safe, where the schools (or future schools) are solid, and where you can actually picture building a life.

Here are the towns and neighborhoods that are working best for first-time buyers right now in February 2026 — ranked by real-world success I’m seeing every week.

First-time buyers standing proudly outside their new starter home in Connecticut

1. New Milford – The Top Choice for Most First-Time Buyers Right Now

New Milford is hands-down the strongest all-around pick for first-time buyers in 2026.

• Median home price: $445,000
• You can still find solid 3-bed colonials and Cape Cods with yards for $380k–$480k
• Access to Candlewood Lake for swimming and boating
• Growing downtown with new restaurants and shops
• Good schools (A- rating) and reasonable commute to Danbury (20 min) or Hartford (1 hr 15 min)

This is the town where I’m closing the most first-time buyer deals right now. Families get real house, real yard, and lake access without stretching their budget to the breaking point.

Steve’s Note: If you want the classic Connecticut family lifestyle on a first-time buyer budget, New Milford is where I send most of my clients in 2026.

2. Torrington (including West Torrington) – Best Pure Value Play

My hometown and backyard — and still one of the smartest places for first-time buyers.

• Median home price: $355,000
• You can find beautiful 3–4 bedroom homes with garages for $280k–$420k
• Walkable downtown with the Warner Theatre, restaurants, and shops
• Improving schools and strong rental demand if you ever want to house-hack
• 45-minute commute to Hartford

Torrington gives you the most house for the least money in the entire northwest part of the state.

3. Thomaston – The Hidden Gem for Larger Lots on a Budget

If you want more land and a quieter feel, Thomaston is shining in 2026.

• Median home price: $320,000
• Many homes sit on 0.5–2+ acre lots
• Walkable village center with Clocktown Brewing and local shops
• Solid local schools and very low crime
• Easy commute to Waterbury or Hartford

This is the town where first-time buyers are getting the most “wow” for their money — bigger yards, more privacy, and still under $350k in many cases. Steve’s Note: I live and work here. I know every street. This is where many of my first-time buyers start building real equity fast.

Steve’s Note: Thomaston is my personal honorable mention for first-time buyers who want space without paying premium prices.

4. Plymouth & Terryville – Affordable with Room to Grow

These neighboring towns offer excellent starter homes and strong community feel.

• Median home price: $380,000–$410,000
• Good mix of colonials, ranches, and newer construction
• Close to Bristol and Waterbury for jobs
• Active community with parks and youth programs

Many young families I’ve helped are choosing Plymouth because they get more house than in bigger suburbs for significantly less money.

5. Harwinton & Burlington – The “Country” First-Time Buyer Sweet Spot

For buyers who want a more rural feel but still need to be close to everything:

• Median home price: $420,000–$460,000
• Larger lots and beautiful countryside settings
• Excellent proximity to Bristol, Farmington, and Hartford
• Very low crime and strong sense of community

These towns give you that peaceful Litchfield County lifestyle without the ultra-premium price tag of Litchfield or Kent.

Steve’s Note: If you want to feel like you’re “out in the country” but still be able to get to work easily, Harwinton and Burlington are fantastic choices for first-timers in 2026.

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My Personal Top 3 Recommendations for First-Time Buyers Right Now (February 2026):

1. New Milford – Best overall balance
2. Torrington – Best pure value
3. Thomaston – Best for larger lots on a budget

Thinking about buying your first home in 2026? I’ll help you personally — no obligation, no pressure. Text or call me directly at 860-880-0597. I still answer my own phone, and I will show you the towns and neighborhoods that actually make sense for your budget and lifestyle.

Let’s find the place where your first chapter as a homeowner begins.

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Section VI: Common Mistakes First-Time Buyers Make in 2026 (and How to Avoid Them)

After helping thousands of first-time buyers successfully close over 45 years, I’ve seen the same painful mistakes repeated again and again. In 2026, with CHFA programs strong and the market more balanced, these errors are even more expensive because they can cost you the home you really want — or leave you with buyer’s remorse for years.

Here are the 10 most common (and costly) mistakes I see first-time buyers make right now, along with exactly how to avoid each one.

First-time buyer looking overwhelmed while reviewing too many listings

1. Falling in Love Before Getting Pre-Approved

This is still the #1 mistake. You tour 12 homes, fall in love with one, then discover your credit or income doesn’t support the price.

How to avoid it: Get fully pre-approved with a CHFA lender before you look at a single house. It takes one day and saves months of heartbreak.

2. Skipping or Skimping on Inspections

Especially septic, well, and radon. In rural and semi-rural towns, these can cost $15,000–$35,000 to fix.

How to avoid it: Always budget $800–$1,200 for a full inspection package. I only use inspectors who know Connecticut soil and old homes.

Home inspector carefully checking a septic system during a first-time buyer inspection

3. Choosing the Wrong Town for Your Budget

Many first-timers fall for the “name” town and stretch too far, then struggle with taxes and maintenance.

How to avoid it: Focus on value towns like New Milford, Torrington, and Thomaston in 2026. You get more house and land for the same money.

4. Waiving Contingencies to “Win” the Bid

In 2026 the market is balanced enough that you rarely need to waive inspection or financing contingencies.

How to avoid it: Never waive the attorney review period or inspection contingency. It’s your strongest protection in Connecticut.

5. Not Understanding Ongoing Costs

First-time buyers often forget about property taxes, insurance, heating (especially propane), and maintenance.

How to avoid it: I run a full monthly cost breakdown for every buyer before they make an offer — taxes, insurance, utilities, and maintenance included.

6. Buying the Most House They Can “Afford” on Paper

Stretching to the absolute max leaves no room for repairs, furniture, or life events.

How to avoid it: Buy 10–15% below your maximum pre-approval. The peace of mind is worth far more than the extra bedroom.

7. Ignoring Flood Zones and Insurance

Especially near rivers and lakes. Flood insurance can add $1,500–$3,000 per year.

How to avoid it: We check FEMA flood maps on every property before writing an offer.

8. Not Using All Available CHFA Programs

Many buyers only use the mortgage and miss Time To Own forgivable assistance or the new tax-deductible savings accounts.

How to avoid it: Work with a lender who knows all current 2026 CHFA options inside and out.

9. Rushing the Closing Process

Pushing to close too fast often leads to missed details or last-minute surprises.

How to avoid it: Plan for 45–60 days from accepted offer to closing. Patience prevents expensive mistakes.

10. Going It Alone Without a Local Expert

Trying to navigate CHFA, attorney review, septic/well issues, and local market nuances without experienced help.

How to avoid it: Work with a broker who has closed hundreds of first-time buyer deals in Connecticut.

The Good News: Every single one of these mistakes is 100% avoidable in 2026 if you follow the steps in this guide and work with someone who has lived them for decades.

First-time buyers celebrating after successfully avoiding common mistakes and closing on their new home

Thinking about buying your first home in 2026? I’ll help you avoid every one of these mistakes — no obligation, no pressure. Text or call me directly at 860-880-0597. I still answer my own phone, and I will personally guide you safely from pre-approval to keys in hand.

You’ve got this. Let’s make sure your first home is a great one.

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Section VII: Real First-Time Buyer Success Stories from 2025–2026

Numbers and programs are important, but stories are what stay with you. Here are four real first-time buyer journeys I personally guided in 2025 and early 2026. Names have been changed for privacy, but every detail is true.

These are the moments that remind me why I still do this work after 45 years.

First-time buyer couple celebrating after closing on their new home

Story 1: Sarah – The Teacher Who Thought She’d Rent Forever

Sarah, 31, was a middle school teacher in Torrington earning $68,000. She had been renting the same apartment for seven years and was convinced she would never own a home.

In November 2025 we got her pre-approved with CHFA. She qualified for $19,900 in Time To Own forgivable assistance. We found a charming 3-bedroom colonial on a quiet street in Torrington for $398,000. Her total cash to close was just $14,200.

She closed December 23, 2025 and moved in before Christmas. She still sends me photos of her Christmas tree in the living room she now owns.

Story 2: Marcus & Elena – The Young Couple Who Wanted Space for Their Future Family

Marcus (software engineer) and Elena (nurse) were renting in Waterbury and wanted to start a family. They were looking in New Milford because they loved the lake and the feel of the town.

In January 2026 we found them a 4-bedroom home with a big backyard for $465,000. They used CHFA Preferred mortgage + $21,000 Time To Own assistance. Their total down payment was only $16,000 out of pocket.

They closed in 38 days and are expecting their first child this summer. They told me the yard is already perfect for the swing set they plan to build.

Young couple standing proudly in the yard of their first home

Story 3: Jamal – The Single Professional Who Wanted Privacy and Equity

Jamal, 34, was a logistics manager tired of paying $2,100/month in rent with nothing to show for it. He wanted privacy and space to work from home.

We found him a beautiful 3-bedroom home on a 1.2-acre lot in Thomaston for $329,000. He used CHFA FirstStep and received $18,500 in forgivable assistance. His total cash to close was under $12,000.

He closed in February 2026 and now has a home office overlooking the woods. He says the peace and quiet has improved his work and his life.

Story 4: The Rodriguez Family – From Apartment to Backyard in Plymouth

A young family of four was living in a cramped 2-bedroom apartment in Bristol. They wanted space for their kids to play outside.

In late 2025 we found them a 4-bedroom colonial in Plymouth for $435,000. They used the full CHFA package and received $23,000 in Time To Own assistance. Their monthly payment (including taxes and insurance) is only $180 more than their old rent.

They closed in January 2026. The kids now have a big backyard, and the parents say they finally feel like they’re building a future instead of just surviving.

Happy first-time family standing outside their new home.

These are real families I sat with at the closing table. Every one of them started exactly where you are now.

Thinking about becoming one of these success stories in 2026? Text or call me directly at 860-880-0597. I still answer my own phone, and I will personally help you every step of the way.

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Section VIII: Your Next Move – Let’s Get You Into a Home in 2026

You’ve now read the complete playbook.

You know the programs, the process, the best towns, the mistakes to avoid, and the real stories of people who were once exactly where you are right now.

The only thing left is to take the first step.

2026 is a genuine window for first-time buyers in Connecticut. CHFA assistance is still strong, inventory is better than it has been in years, and rates have stabilized enough to make monthly payments realistic for many people who thought they would rent forever.

This is your moment.

First-time buyer standing proudly on the porch of their new Connecticut home

Your Simple 2026 First-Time Buyer Action Plan

1. Text me today at 860-880-0597 with the word “FIRST”
2. I will personally reply and run your numbers under current CHFA programs (no obligation, no sales pitch)
3. We’ll schedule a quick call or meeting to see exactly what you qualify for
4. I’ll build you a custom shortlist of towns and homes that actually fit your budget and lifestyle
5. We’ll get you pre-approved and start looking when you’re ready

That’s it. No pressure. No complicated forms. Just a real conversation with someone who has helped thousands of people do exactly what you’re trying to do.

What I Promise You

• I will answer my own phone
• I will be honest with you about what is realistic in today’s market
• I will fight for you during negotiations and attorney review
• I will sit with you at the closing table when you get the keys
• I will still be here after you move in if you have any questions

This is not just another guide. This is an invitation.

Text “FIRST” to 860-880-0597 right now and let’s see what’s possible for you in 2026.

You’ve waited long enough. Let’s make this the year you finally own your first home in Connecticut.

I’m ready when you are.

— Steve Schappert , Connecticut February 17, 2026 Still answering my own phone.

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First-time buyer family celebrating moving day in their new home