CHFA and Down Payment Help in Connecticut: Where to Start

Quick answer: Start with a CHFA-participating lender, because you cannot apply to the Connecticut Housing Finance Authority (CHFA) directly. CHFA's Down Payment Assistance Program (DAP) lends up to $15,000, and its Time To Own program offers up to $25,000 that is forgiven over 10 years. As of October 5, 2026, CHFA showed $15,496,650 available for Time To Own reservations. For most CHFA loans, a first-time homebuyer means you have not owned a home in the past three years, and that rule is waived in federally targeted areas.

I'm Rachel Natal, a Realtor with Real Broker LLC, licensed in Connecticut and Massachusetts. If you rent now, the monthly payment may feel doable while the upfront cash feels impossible. That gap is what down payment help is for. Here is how CHFA works, what the programs offer now, and what I would do first.

What is CHFA, and how do you get a CHFA loan?

CHFA is Connecticut's state housing finance agency. For buyers, it offers 30-year fixed-rate mortgages at below-market interest rates for low- to moderate-income households, plus down payment assistance loans.

You do not apply to CHFA itself. You apply through one of its participating lenders, and CHFA says there are nearly 70 across the state. The lender checks which programs fit you, pre-approves you and handles the application.

• CHFA's first-time buyer loans were renamed "Make it Yours" on June 1, 2026. Only the names changed.
• The home must be your primary residence, not an investment or vacation property.
• Program terms change often. Confirm every number here with a CHFA-participating lender.

Do you qualify as a first-time homebuyer?

Maybe, even if you owned a home before. CHFA's rule is that you are a first-time homebuyer if you have not owned a home in the past three years.

The targeted area exception

If you owned a home in the last three years, you may still qualify by buying in a federally targeted area, as long as you own no other property at closing. The rate may also be 0.25 percent lower there. Targeted areas are specific census tracts, not whole towns. In Hartford County, CHFA's June 22, 2026 chart lists eligible tracts in Hartford, East Hartford, Manchester, New Britain and Vernon. Your lender checks the exact address.

Income and sales price limits

Make it Yours loans have income limits based on household size and sales price limits based on the town, and both are higher in targeted areas. For example, CHFA's chart dated June 22, 2026 lists a $566,350 sales price limit for most Capitol region towns, including Newington and Wethersfield, and $692,210 in the targeted tracts listed above. Limits are updated, so ask your lender to check the current chart for your town and household.

Which CHFA mortgage programs should you ask about?

Make it Yours: HFA Advantage and HFA Preferred

These are conventional loans through Freddie Mac and Fannie Mae. CHFA says there is no upfront mortgage insurance cost and the monthly mortgage insurance is lower. CHFA's program outline allows up to 97 percent financing on a one-unit home, so the minimum down payment is 3 percent.

Make it Yours: Government Insured

This is CHFA's version of FHA, VA and USDA Rural Development loans, with a below-market rate and down payment and closing cost help available. Condos must be approved by FHA, VA or USDA, as applicable.

Next Move with Deferred DPA

For first-time and repeat buyers who do not fit the stricter Make it Yours rules:

• Household income up to 120 percent of area median income, and no maximum sales price.
• A 620 minimum credit score.
• It must be paired with CHFA's deferred down payment assistance: up to 3 percent of the first mortgage on a conventional loan or 3.5 percent on a government loan, at 0 percent interest, deferred up to 30 years with no monthly payment. It is still a loan, so ask exactly when it comes due.

How does CHFA down payment assistance work?

Down Payment Assistance Program (DAP)

DAP is a second mortgage that pays toward your down payment and closing costs. It goes with a Make it Yours first mortgage.

• Amount: 4 percent of the sales price or appraised value, whichever is lower, up to $15,000. The minimum is $3,000.
• Rate: the first mortgage rate or 5.00 percent, whichever is less.
• Repayment: CHFA's lender outline lists a 30-year fixed-rate, amortizing loan, so you make a monthly payment on it.

Worked example: on a $300,000 home, 4 percent is $12,000, which is under the $15,000 cap. At 5.00 percent over 30 years, principal and interest on $12,000 is about $64 a month. At $375,000, 4 percent hits the $15,000 cap. Your lender sets the final amount.

Time To Own (forgivable)

CHFA runs Time To Own for the Connecticut Department of Housing, and it had funds available in October 2026. The State Bond Commission added $5,000,000 on September 8, 2026, and CHFA showed $15,496,650 available for reservations as of October 5, 2026. CHFA calls it a limited-time program, so ask your lender whether funds remain.

• Terms: 0 percent interest and no monthly payment. Ten percent of the principal is forgiven on each anniversary of closing, until it is fully forgiven on the tenth anniversary.
• Amount: up to $25,000 if your household income is 80 percent of area median income or less, up to $18,750 above 80 and up to 100 percent, and not available above 100 percent. The minimum is $3,000. It can cover up to 20 percent toward the down payment and up to 5 percent toward closing costs.
• Who: you must get a CHFA first mortgage, and every borrower must be able to show Connecticut residency for the most recent three years. It is mainly for first-time buyers, and others may apply in a targeted area.
• Newer rules: non-arm's-length sales, such as buying from a family member, are not allowed, including gifts of equity. For appraisals dated on or after October 5, 2026, a purchase is not eligible if the appraisal is 10 percent or more above the sales price (after subtracting seller concessions).

Worked example: with a $20,000 Time To Own loan, $2,000 is forgiven on each closing anniversary. After five anniversaries, $10,000 is left. After the tenth, it is zero. If you might sell or refinance sooner, ask your lender what you would owe.

What homebuyer education do you need?

CHFA requires a free homebuyer education class for anyone getting a CHFA loan, and DAP specifically requires it before closing. For Next Move, CHFA's outline requires it when all borrowers are first-time homebuyers.

• Pre-Purchase workshop: the in-depth class, free to Connecticut residents. Completing it within the past 12 months satisfies the requirement.
• Pre-Closing workshop: only for applicants with a CHFA loan reservation in process. It is also online, free with a coupon code from your lender.
• Landlord Education: also required for a two- to four-family home.

Classes run weekday evenings and Saturdays, some virtual and some in Spanish. Register with the agency listed on CHFA's class calendar.

What other help and loan types should you ask about?

HouseHartford

Buying in Hartford? The city's page and brochure (revised June 2026) describe:

• Up to 20 percent of the price, maximum $40,000, for one- to four-family homes and condos in Hartford you will live in.
• Income up to 80 percent of area median income by household size.
• A second mortgage forgiven over 5 to 15 years while it stays your primary residence.
• At least $1,000 of your own money at or below 50 percent of area median income, or $2,000 above that.
• An 8-hour homebuyer class, a city inspection before closing, a $250 fee at closing, and an application through a participating lender.

Read my Hartford buyer guide for how city taxes work. CHFA notes that other towns and some employers offer grants or loans too, so ask your town and your benefits office.

Other low down payment loans

• FHA: CHFA's outline lists a 3.5 percent minimum down payment on FHA loans.
• VA: for eligible veterans and service members, often no down payment if the price is not above the appraised value, and no private mortgage insurance.
• USDA: no money down for qualified buyers in eligible rural areas, with income up to 115 percent of median. Your lender checks the address.
• Conventional: Fannie Mae's HomeReady and Freddie Mac's Home Possible both allow 3 percent down.

Where to start this month: a step-by-step checklist

1. Pick a comfortable monthly number. Include taxes, insurance and any DAP payment. If you rent now, read what your rent could actually buy in Hartford County.
2. Sign up for the free Pre-Purchase class. It counts for 12 months.
3. Gather three years of tax returns. Time To Own uses them to confirm Connecticut residency.
4. Get pre-approved by a CHFA-participating lender. Ask which programs fit, your limits, and whether Time To Own still has funds.
5. Ask about local help. HouseHartford if you are buying in Hartford, and your town's housing office anywhere else.
6. Budget for closing costs. CHFA's guide says they typically run 3 to 5 percent of the price.
7. Line up a Connecticut real estate attorney. Attorneys handle closings in Connecticut.

New to all of this? Read where to actually start when buying your first home in Connecticut.

What mistakes can cost you the help?

• Spending your savings before closing. Your lender must confirm you have funds to close.
• Opening new credit or financing a car. The CFPB says lenders may check your credit again just before closing, and a new payment can change what you qualify for.
• Assuming last year's terms still apply. Time To Own funding and rules changed several times in 2026.
• Forgetting the DAP payment. DAP is a monthly payment, not a grant.
• Skipping the recapture tax note. CHFA says that in rare cases, selling within nine years at a profit with income above a set limit can trigger a Federal Recapture Tax, which CHFA may reimburse. Ask a tax professional.

Frequently asked questions about CHFA and down payment help in Connecticut

How much down payment assistance can I get from CHFA?

CHFA's Down Payment Assistance Program lends 4 percent of the lower of the price or appraised value, up to $15,000, with a $3,000 minimum. Time To Own offers up to $25,000, depending on household income, forgiven over 10 years.

Can I apply for a CHFA loan directly?

No. You apply through a CHFA-participating lender, and CHFA says it has nearly 70 of them across Connecticut.

What counts as a first-time homebuyer for CHFA?

CHFA considers you a first-time homebuyer if you have not owned a home in the past three years. That rule is waived in federally targeted areas, as long as you own no other property at closing.

Is the CHFA Time To Own program still available in 2026?

CHFA's page showed $15,496,650 available for Time To Own loan reservations as of October 5, 2026, after the State Bond Commission added $5,000,000 on September 8, 2026. It is a limited-time program, so ask a CHFA-participating lender whether funds remain.

Do I have to repay CHFA down payment assistance?

The DAP loan is repaid monthly over a 30-year term, at the first mortgage rate or 5.00 percent, whichever is less. Time To Own has no monthly payment and is forgiven 10 percent per year until it is fully forgiven at the tenth anniversary of closing.

Is a homebuyer education class required for a CHFA loan?

Yes. CHFA requires a free homebuyer education class for anyone getting a CHFA loan (for Next Move, when all borrowers are first-time buyers), and buyers of a two- to four-family home also need the Landlord Education workshop.

What is HouseHartford?

HouseHartford is the City of Hartford's down payment assistance program, offering up to 20 percent of the purchase price, with a $40,000 maximum, for one- to four-family homes and condos in Hartford. Income is limited to 80 percent of area median income, and you apply through one of the city's participating lenders.

What if my income is too high for Time To Own?

Time To Own is not available above 100 percent of area median income. CHFA's Next Move program allows income up to 120 percent of area median income with no maximum sales price, and nearby guides for East Hartford and Manchester can help you compare costs.

Want help with this?

I am happy to talk through your monthly number and match your lender's options to real listings, with no pressure. Confirm every program detail with a CHFA-participating lender, since terms change.

• Send me a message or call or text (917) 231-7390
• Search homes for sale in Connecticut
• Renting right now? Read what your rent could actually buy in Hartford County

Rachel Natal, Realtor
Real Broker LLC | Licensed in Connecticut and Massachusetts
100 Pearl St, Hartford, CT 06103

Facts checked October 2026. Sources: Connecticut Housing Finance Authority (homebuyer program pages, Time To Own and DAP pages, Loan Program Outlines revised October 5, 2026, Next Move Loan Program Outlines, lender bulletins, homebuyer education page, and Make it Yours sales price and income limits dated June 22, 2026), City of Hartford HouseHartford page and brochure, U.S. Department of Veterans Affairs, USDA Rural Development, Fannie Mae, Freddie Mac, and the Consumer Financial Protection Bureau.

This article is general real estate information. It is not legal, tax, lending or inspection advice. Taxes, assessments, utilities, school assignments and market conditions change, so confirm the details for any specific property with the town and the right licensed professionals.