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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: 21  matches     Displaying: 1 - 21 
FileSizeType
005 Approval of Assumption - 035-1195 Rev 7-14
This form approves the CHFA assumption of a CHFA Mortgage.
43Kpdf

007 Assignment of Mortgage -Sample 036-1014 Rev 10-14
An Assignment of Mortgage reference sample. CHFA is not a member of MERS (Mortgage Electronic Registration System). Recording data for both the mortgage deed and assignment of mortgage must be in the name of the Connecticut Housing Finance Authority.
13Kpdf

010 Assumption Agreement -Sample - 036-1195 Rev 7-14
This form is a sample of the mortgage assumption agreement.
51Kpdf

015 Borrower Eligibility Certificate - 014-1107 Rev6-14
This CHFA Disclosure Document is required to be signed by Borrower(s) to certify that both the borrower and the home that is being purchased meet the eligibility requirement for a CHFA loan.
161Kpdf

030 Downpayment Assistance Program (DAP) Appl for Dwnpymnt and Closing Costs - DAPappcc Rev 6-14
This is the Downpayment Assistance Program application for downpayment assistance and closing costs.
154Kpdf

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

044 Employment Verification (Telephone) - Sample - 057-1195 Rev 8-14
This is a sample of the minimum information that must be provided when a Lender verifies a borrower's employment over the phone.
84Kpdf

080 Loan Purchase Request Form - 066-0408 Rev 7-14
This form must be completed by the Lender and faxed to the CHFA Finance Dept. to request Purchase (funding) for closed CHFA 1st and 2nd mortgage loans.
82Kpdf

100 Owner-Occupancy Inspection (PostClosing)- Sample 025-0400 Rev 8-14
This form is a certification by a Lender to CHFA that the borrower/s are occupying the residence as an eligible dwelling.
36Kpdf

115 Processing Checklist File Submission Order -009-1107 Rev 8-14
This checklist details the mortgage insurance type, standard-CHFA and product-specific CHFA loan documents in the order they must be presented in the loan application package submitted to CHFA for processing.
154Kpdf

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

170 Underwriting - Limited Documentation Compliance Checklist 009A-0808 Rev 8-14
This form lists the documents (in order) that must be submitted for streamline documentation for financing loans with ratios up to a maximum of 33%/43% with an "Accept" Risk Status in automated underwriting.
159Kpdf

CHFA APPROVED SERVICER - BOGMAN, INC REFERENCE GUIDES Rev 10-14
For loans delivered to Bogman, Inc. this summary contains their Contact Information, Transfer Guidelines, and Document Checklists.
664Kpdf

CHFA APPROVED SERVICER - U.S. BANK REFERENCE GUIDES Rev 10-14
For loans delivered to U.S. Bank, this summary contains their Contact Information and Document Checklists.
268Kpdf

Counseling Class Schedule - 3-Hour Pre-Closing Education Class - 4Q 2014
This chart list the 4th quarter schedules for the 3-Hour Pre Closing Education classes. These classes are available to homebuyers who are getting a Downpayment Assistance Loan and have a reservation loan number for a CHFA loan.
33Kpdf

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

Program Brochure - Emergency Mortgage Assistance Program (EMAP)- (Spanish) 4-2014
This brochure provides an overview of the Emergency Mortgage Assistance Program (EMAP). 4/2014
738Kpdf

Program Brochure - Emergency Mortgage Assistance Program (EMAP) 4-2014
This brochure provides an overview of the Emergency Mortgage Assistance Program (EMAP). Rev 4/2014
737Kpdf

Program Brochure - Homebuyer Mortgage Programs (Spanish) 4-2014
This brochure provides an overview of the CHFA Homebuyer Mortgage Program, the Downpayment Assistance Program and the Rehabilitation Mortgage Loan Program.
1063Kpdf

Program Brochure - Homebuyer Mortgage Programs 4-2014
This brochure provides an overview of the CHFA Homebuyer Mortgage Program, the Downpayment Assistance Program and the Rehabilitation Mortgage Loan Program.
951Kpdf

Targeted Areas - Police Homeownership Program Participating Towns Rev 7-1-2013
This is a list of Town that participate in the CHFA Police Program
114Kpdf
FileSizeType
Found: 21  matches     Displaying: 1 - 21