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Downpayment Assistance Program

Program Overview

The Downpayment Assistance Program (DAP) offers supplementary loans at below-market interest rates to eligible borrowers of home loans who are unable to raise sufficient funds to pay the upfront expenses associated with purchasing a home.

Please note: A DAP loan is not intended to finance the purchase of a home.  Because CHFA recognizes that the foremost obstacle to homeownership is a potential homebuyer’s inability to cover the down payment and closing costs of a home purchase, DAP loans can be used in conjunction with CHFA home loans.  An eligible borrower must show his or her ability to repay the primary mortgage and the DAP loan in order to qualify for assistance under this program.   

Follow the links below for more information regarding the Downpayment Assistance Program.  


Downpayment Assistance Program Interest Rates

In most cases, the DAP interest rate will match the interest rate of the borrower’s first mortgage (up to 6 %.)  However some borrowers under the Homeownership Program, the Home of Your Own Loan Program, the Police Homeownership Mortgage Program and the Section 8 Housing Choice Voucher Homeownership Program may be eligible for a lower interest rate.


Who can apply for a Downpayment Assistance Program loan?

Any borrower who qualifies for a CHFA first mortgage can also apply for a DAP loan of at least $3,000.  Generally, borrowers must demonstrate that they have sufficient income to pay both loans but lack sufficient savings to afford a down payment and/or the closing costs on the home.  In addition, the applicant must be able to afford the $200 application fee for the program and must also attend a free 3-hour homebuyer education class before closing on the loan. (See, homebuyer education for class schedules.)


How much Downpayment Assistance can you receive?

The minimum DAP loan amount is $3,000. The maximum DAP loan amount will be equal to the minimum downpayment required for the loan program applied for, generally between 3% - 3.50% of the homes sales price.


What else should you know about a DAP loan? 

  • Loan amounts may vary.
    While the minimum DAP loan amount is $3,000, the actual down payment required might exceed this sum depending upon the purchase price of the home.  Typically, at least 3.5 % of the total purchase price of a home is required for a down payment. (This is determined by the mortgage insurer.)   

  • Loan eligibility may depend on household savings.
    DAP applicants are required to use all liquid assets or household savings above $10,000 towards a down payment.  This requirement does not apply to borrowers under the Police Homeownership Program and the Teachers Mortgage Assistance Program.  Retirement accounts are excluded from the asset test.

  • An application fee is required.
    There is a $200 application fee for a DAP loan.

  • You will need to complete a homebuyer education class.  
    Under this program, a borrower must attend a free three-hour homebuyer education class before closing on the loan.  Classes are held at several locations in the state each month. (See, homebuyer education class schedules.)

  • Other down payment assistance may be available from your town or city.
    Some towns and cities provide down payment assistance in the form of low interest loans or grants to eligible residents.  Prospective homebuyers should inquire with their local Department of Economic and Community Development to investigate whether this assistance is available.


How do you apply for a Downpayment Assistance Program loan?

To be eligible for a DAP loan, borrowers must apply and qualify for a CHFA first mortgage.  To apply for a Downpayment Assistance Program loan, prospective borrowers should contact one of CHFA’s Participating Lenders for guidance through the loan application process. Generally, the entire loan process takes between six and eight weeks.


Questions?  Contact CHFA.

Prospective borrowers should first contact their lender for information on this loan program.  For additional assistance, borrowers may contact CHFA’s single family underwriting department.

Phone:     (860) 571-3502
Fax:(860) 571-3550

Mailing Address:
Attn: Single Family Underwriting
999 West Street
Rocky Hill, CT 06067-4005


Additional Information

The following documents are related to the Downpayment Assistance Program.  To open and view the document, click on the document title.

Related Documents Found: 13  matches     Displaying: 1 - 13 
030 Downpayment Assistance Program (DAP) Appl for Dwnpymnt and Closing Costs - DAPappcc Rev 5-16
This is the Downpayment Assistance Program (DAP) Application for downpayment assistance and closing costs.

032 Downpayment Assistance Program (DAP) Appl for Dwnpymnt Only - DAPappOnly Rev 1-15
This is the Downpayment Assistance Program (DAP) application for downpayment assistance only.

034 Downpayment Assistance Program (DAP) Borrowers Certificate - DAP95-05 Rev 8-14
This is a CHFA Downpayment Assistant Program disclosure document that must be completed at application. The borrower(s) are required to certify understanding of each statement relative to the terms of receiving the DAP Second Mortgage Loan.

035 Downpayment Assistance Program (DAP) Closing Procedures - DAPCHIF-C4C Rev 2-17
This form describes the Downpayment Assistance Program loan closing procedures including what information needs to be provided to CHFA's DAP loan servicer, Capital For Change, Inc. (C4C). (Servicer C4C formerly known as CHIF - Eff. 6-1-16)

037 Downpayment Assistance Program (DAP) Second Mortgage Deed - DAP08MD Rev 9-15
This is the second mortgage deed for the CHFA Downpayment Assistance Program.

038 Downpayment Assistance Program (DAP) Second Mortgage Note - DAP07NOT Rev 5-16
This is the second mortgage Note for the CHFA Downpayment Assistance Program.

059 Income and Sales Price Limits - 064-0308 Rev 4-2017
This document details the CHFA income and sales price limits that are in effect in different geographic regions of the State of CT.

Counseling Class Online - Homebuyer Registration Instructions Rev 8-16
Instructions for registering for the "Free" CHFA eHome America Online Homebuyer Counseling Course.

Counseling Class Online - Lender Registration Instructions Rev 8-16
Lender Instructions for obtaining a loan origination system (LOS) "coupon code" for CHFA borrowers to use in registering for "Free of Charge" Online Homebuyer Counseling thru CHFA ehome America website.

Counseling Class Schedule - 8 Hour Pre-Purchase Education Class - 2Q 2017
This chart lists the 2nd quarter class schedules for the Pre-Purchase Education classes. These classes are available to prospective homebuyers.

Counseling Class Schedule - 3 Hour Pre-Closing Education Class - 2Q 2017
This chart list the 2nd quarter schedules for the Pre-Closing Education classes. These classes are available to homebuyers who have a reservation loan number for a CHFA loan.

Counseling Class Schedule - Financial Fitness - 2Q 2017
This chart list the 2nd quarter Financial Fitness counseling available to homeowners and homebuyers. This counseling is required for clients accepted into the Mortgage Crisis Job Training Program and is available to other referred clients.

Counseling Class Schedule - Landlord Class - 2Q 2017
This chart list the 2nd quarter schedules for the Landlord Education classes. This class is required for the purchase of a 2-to-4 family home financed by CHFA. It is also available to any potential 2-to-4 family homeowner.
Found: 13  matches     Displaying: 1 - 13