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
Homeownership Program, the
Home of Your Own Loan Program,
Police Homeownership Mortgage
Program and the
Section 8 Housing Choice Voucher
Homeownership Program may be
eligible for a lower interest rate.
apply for a Downpayment Assistance
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
- Loan eligibility may depend on household
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
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.
you apply for a Downpayment Assistance
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
Participating Lenders for
guidance through the loan
application process. Generally, the
process takes between six and eight
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
Attn: Single Family Underwriting
999 West Street
Rocky Hill, CT 06067-4005
The following documents are related
to the Downpayment Assistance
Program. To open and view the
document, click on the document
- 13 |
- 13 |