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Down Payment Assistance Program (DAP) Loan


CHFA recognizes that saving enough money to pay the down payment is the main barrier to homeownership for many first-time homebuyers. If you have the monthly income to pay mortgage payments, but not enough money to pay the upfront costs, you may qualify for a low-interest loan to help you cover the down payment and closing costs. Borrowers can finance the down payment and closing costs with a DAP loan.  A DAP loan is a second mortgage on your home. 


  • benefits


    • Financing to cover down payment and closing costs    
    • Home purchase assistance up to $15,000 
    • Loan interest rate will be equal to: (i.) the first mortgage interest rate in effect or, (ii.) 5.00% (5.10%-5.50% APR), whichever is less. 


  • eligibility

    Eligibility Requirements

    • You must first apply and qualify for a CHFA mortgage from a CHFA- Participating Lender.
    • An eligible borrower must show his or her ability to repay the CHFA first mortgage and the DAP loan in order to qualify for assistance under this program. 
    • Loan amount will be equal to 4.00% of: (i.) the sales price or, (ii.) the appraised value, whichever is less.
  • additional-considerations

    Additional Considerations

    • Your DAP loan must be at least $3,000, but no more than the minimum down payment required for your home, usually between 3% and 3.50%. Your lender will work with you to determine the amount of down payment required for your mortgage loan and verify your ability to repay both your first mortgage and the DAP loan.
    • You will be required to attend a free Homebuyer Education  class prior to closing. The class will help you understand the home-buying process and offer tips for maintaining a home. Classes are held online and at locations across Connecticut. 

Additional Resources 

Your city or town may offer down payment assistance in the form of low-interest loans or grants. Be sure to inquire with your local Department of Economic and Community Development. Some employers also offer grants or loans, so check with your benefits office.  

How to Apply 

Contact a CHFA- Participating Lender near you and apply!  For additional questions, you may contact the CHFA Homeownership Department at (860) 571-3541 or email

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