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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 and the maximum is 25 % of the purchase price of the home.   


 

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
Email:singlefamilyunderwriting@chfa.org


Mailing Address:
CHFA
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: 16  matches     Displaying: 1 - 16 
FileSizeType
030 Downpayment Assistance Program (DAP) Appl for Dwnpymnt and Closing Costs - DAPappcc Rev 1-15
This is the Downpayment Assistance Program (DAP) application for downpayment assistance and closing costs.
153Kpdf

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.
151Kpdf

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.
170Kpdf

035 Downpayment Assistance Program (DAP) Closing Procedures - DAPCHIF Rev 8-14
This form describes the Downpayment Assistance Program loan closing procedures, including what information needs to be provided to the Connecticut Housing Investment Fund.
140Kpdf

037 Downpayment Assistance Program (DAP) Second Mortgage Deed - DAP08MD Rev 6-14
This is the second mortgage deed for the CHFA Downpayment Assistance Program.
44Kpdf

038 Downpayment Assistance Program (DAP) Second Mortgage Note - DAP07NOT Rev 8-14
This is the second mortgage note for the CHFA Downpayment Assistance Program.
36Kpdf

039 Downpayment Assistance Program (DAP) Second Mortgage Release -Sample DAPREL Rev 8-14
This is the legal document obtainable through CHIF to release and discharge a borrower from a DAP mortgage obligation.
153Kpdf

120 Recapture Tax (The Federal) Notice to Mortgagor -Method to Compute - 052-1195 Rev 7-14
Notice of maximum Recapture Tax and Method to Compute on Sale of Home is required. Form must be signed and dated by borrowers providing them legal notice of the Tax due upon sale of the home during the Recapture Tax period.
73Kpdf

122 Recapture Tax (The Federal) Notice to Mortgagor- Potential Tax 051-0597 Rev 9-14
This is a CHFA disclosure that advises the borrower of the reason for the Recapture Tax provision and the conditions under which it will be applicable.
44Kpdf

124 Recapture Tax (The Federal) Notice to Mortgagor- Understanding Tax - 050-0597 Rev 7-14
This is a CHFA Disclosure document that the Lender is required to present to a potential borrower at the time of application to certify the applicant has been informed of the potential Recapture Tax liability associated with CHFA mortgage loan financing.
129Kpdf

125 Recapture Tax (The Federal) Reimbursement Request - 049-0313 Rev 8-14
Form is used to request reimbursement from CHFA of the Federal Recapture Tax borrowers paid following the sale or other disposition of a residence purchased with a mortgage financed through tax-exempt bonds issued by CHFA for closings on or after 3/18/13
245Kpdf

126 Recapture Tax (The Federal) Threshold Income Limits Chart - 048-0405 Rev 8-14
This chart lists the threshold income limits for Recapture Tax liability based on the geographic location of the home and the number of years of ownership.
266Kpdf

CHFA APPROVED SERVICER - IDAHO HOUSING AND FINANCE ASSOCIATION REFERENCE GUIDE - FILE CHECKLIST 2-12-2015
This summary contains Idaho Housing and Finance Association contact information and file document checklist. This new CHFA servicer has replaced U.S. Bank as servicer effective with reservations dated Jan. 2, 2015
60Kpdf

Counseling Class Schedule - Pre-Closing Education Class - 1Q 2015
This chat list the 1st quarter schedules for the Pre-Closing Education classes. These classes are available to homebuyers who are getting a Downpayment Assistant Loan and have a reservation loan number for a CHFA loan.
100Kpdf

Counseling Class Schedule - Pre-Purchase Education Class - 1Q 2015
This chart list the 1st quarter schedules for the Pre-Purchase Education classes. These classes are available to prospective homebuyers.
39Kpdf

Income and Sales Price Limits
This document details the income and sales price limits that are in effect in different geographic regions of the state
148Kpdf
FileSizeType
Found: 16  matches     Displaying: 1 - 16