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Military Homeownership Program

Program Overview

The Military Homeownership Program, in appreciation and recognition of our Connecticut military families, offers home loans at below-market interest rates to members of the United States military, National Guard, Reserves, veterans and some widowed military spouses or civil union partners. While this program is designed to benefit first-time homebuyers primarily, previous home owners may be eligible if they buy a home in a federally targeted area.     

CHFA is committed to helping members of our military achieve their dream of homeownership and values its partnership with the qualified lenders for this program.  Prospective borrowers may apply directly for a Military Homeownership Program loan at their local CHFA-approved participating bank or mortgage company.  (See, list of Participating Lenders near you.)

Follow the links below for more information regarding the Military Homeownership Program .  


Military Homeownership Program Interest Rates

Currently, the Military Homeownership Program is providing mortgages at the following rate:

    • Government Insured Interest Rate: 3.625%** (APR range 3.725 - 4.125%)
    • Non-Government Insured Interest Rate: 3.875%**(APR range 3.975% - 4.375%)
    • Fees: Additional fees may apply.
    • Term: 30 years, fixed rate

** Please note, this rate is subject to change and additional fees may apply.


Who can apply for a Military Homeownership Program loan?

Primarily, the Military Homeownership Program is intended to benefit first-time homebuyers who are veterans, Active Duty or National Guard service members of the United States military.   Unmarried surviving spouses or civil union partners of eligible veterans who died as a result of military service or service-connected disabilities may also be eligible.

Applicants who have owned homes before may also be eligible for this loan if they purchase a home located in one of the Targeted Areas in Connecticut or if they have been granted a one-time exemption from the first-time homebuyer rule under the Tax Relief and Health Care Act of 2006.

Loan applicants are encouraged to bring all documentation associated with their former homes to their lender in order to determine whether they qualify for this federal exemption

  • Who are considered first-time homebuyers?
    First-time homebuyers are those who have never purchased a home before or have not had an ownership interest in a principal residence for the past three years.

  • What are the income guidelines to qualify for this loan?  
    The borrower’s annual gross income must not exceed the CHFA income limits that apply to the geographic region where the applicant intends to purchase a home.  

    The CHFA income limits do not apply for homes purchased in targeted areas, unless the applicant also borrows a loan under the Downpayment Assistance Program.


What types of property can you purchase with a Military Homeownership Program loan?

CHFA requires that loan applicants purchase homes that meet specific property and sales price guidelines.   

  • Property Guidelines:

    In order to qualify for this program, the applicant must use the loan to purchase a home in which he or she will reside year-round. In the case when an applicant is called to Active Duty, he or she should contact CHFA directly to obtain permission to rent the home during deployment.  

    An applicant may not use the loan to purchase recreational, vacation, investment, commercial or rental properties. No part of the purchased property may be designed for commercial purposes.   In addition, the property must meet one of the definitions listed below:   

    In addition, the property must meet one of the definitions listed below:

    • Existing and new single-family homes, townhouses and Planned Unit Developments
    • Newly constructed homes that meet FHA’s energy efficiency standards (Ask your Participating Lender for more information.)
    • Condominiums listed on the FHA's Approved Condominium List
    • Two- to four-family homes that have been used as residences for the past five years or newly constructed, two-family homes in a Targeted Area 
    • Mobile homes that meet FHA guidelines.
  • Sales Price Guidelines:
    In order to qualify for this program, the purchase price of a home must not exceed the CHFA sales price limit established for the specific city or town in the state where the property is located.  (See, the CHFA Sales Price Limits.)


What else should you know about a Military Homeownership Program loan? 

The following additional considerations and restrictions apply to Military Homeownership Program loans.

  • You may qualify for help with your down payment and closing costs.
    For those who lack sufficient funds to cover the upfront expenses associated with purchasing a home, CHFA offers assistance to qualified borrowers through the Downpayment Assistance Program (DAP).   

    Please note:  A down payment of at least 3.5 % of the purchase price of the home is typically required by the mortgage insurer.  

  • Mortgage insurance may be required.
    Loans originated under government program types must be insured by the Federal Housing Administration (FHA), the Veterans Administration, or the USDA Rural Development.  

    Conventional Loans are originated under the CHFA HFA Preferred loan program.  These mortgages, if originated with Loan to Value (LTV) ratios > 80%,  must be insured by Private Mortgage Insurance (PMI).   

    Mortgage insurance is not required when a borrower makes a down payment of at least 20% of the total purchase price of the home.  These loans are originated under the CHFA HFA Preferred tm Uninsured Loan Program.  
  • You may be required to pay a special federal tax if you sell your home within nine years.
    Under rare circumstances, CHFA mortgage loans may be subject to the Federal Recapture Tax at the time the property is sold.  The tax might apply if a borrower sells his or her home within nine years of the purchase date, makes a profit on the sale and has an income that exceeds federal recapture tax limits at the time of the sale.  You may be eligible to receive reimbursement from CHFA if you are required to make the Federal Recapture Tax payment.


How do you apply for a Military Homeownership Program loan?

To apply for a Military Homeownership Mortgage Program loan, a prospective borrower should contact one of CHFA’s Participating Lenders for guidance through the loan application process.  

Generally, the time from applying for the loan to closing the sale of the property is six to 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 Military Homeownership Program.  To open and view the document, click on the document title. 

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018 Borrower Signature Affidavit 014-0718 8-2017
This form must be completed by all borrowers executing closing documents on CHFA first and second mortgage loans. Form must be included in all loan closing packages delivered to CHFA loan servicers on and after September 4, 2017.

059 Income and Sales Price Limits - 064-0308 Rev 6-2017r
This manual provides information regarding the CHFA Loan Programs available with underwriting overlays, credit scores, applicable servicers and more.

180 Veterans Statement -Due on Sale - 018-0296 Rev 4-15
This document, including relevant VA regulations, is signed by a U.S. Veteran-borrower and submitted with the loan application to acknowledge his/her risk of foreclosure should he/she sell the home after closing, to an unapproved buyer.

Counseling Class Online - Homebuyer Registration Instructions Rev 1-3-18
Homebuyer Instructions for registering for the "Free" CHFA Online Homebuyer Education offered thru eHome America.

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 - 1Q 2018
This chart list the 1st 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 - 1Q 2018
This chart lists the 1st quarter schedules for the Pre-Closing Homebuyer Education classes. These classes are available to homebuyers who have a reservation loan number for a CHFA loan.

Counseling Class Schedule - Financial Fitness - 1Q 2018
This chart list the 1st quarter Financial Fitness couseling available to homeowners and homebuyers. This program is required for clients accepted into the Mortgage Crisis Job Training Program and is available to other clients.

Counseling Class Schedule - Landlord Class - 1Q 2018
This chart list the 1st 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.

Program Brochure - Military Homeownership Program 7-3-14
This brochure provides an overview of the Military Homeownership Program.

Program Brochure - Veterans Homeownership Pilot Program 6-16-14
Program helps veterans with financing of their first home. Also, Downpayment Assistance Program DAP loan at 0% interest up to $10,000 for downpayment and or closing costs. Funds limited and available on first-come, first-serve basis.
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