The HFA Advantage and HFA Preferred mortgage Programs are popular for first-time homebuyers, as they can help borrowers save on insurance costs, along with CHFA's below-market interest rate. If you are not a first-time homebuyer, you may qualify for these mortgages if you are purchasing a home in a Targeted Area.
- If you are not a first-time homeowner, or have owned a home in the past three (3) years, you may still be eligible for a CHFA loan if you plan to purchase in an area of the state targeted for revitalization, known as a Targeted Area. (You may not own any other property at the time of loan closing)
- Applicants purchasing a home in a Targeted Area should follow the income limits for "Targeted Areas" reflected on the CHFA Income, Sales Price Limits, Target Area chart.
- The programs published interest rate may be reduced by 0.25% for eligible applicants purchasing in a federally Targeted Area of the state.
- 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 your new home. Classes are held online and at locations across Connecticut.
- You may be required to pay mortgage insurance. The amount is specific to your individual circumstances. Your Lender will review mortgage insurance requirements with you.
- In rare cases, you could be required to pay a Federal Recapture Tax if you sell your home within the first nine years, AND earn a profit, AND your income exceeds the designated Federal Recapture Tax Income at the time of sale. Should you fall into this category, you may be reimbursed by CHFA for the taxes paid if you complete and file the required forms. Consult a tax professional if you have questions on the Recapture Tax.
How to Apply
CHFA has nearly 70 participating lenders across the state, so contact a CHFA- Participating Lender near you and apply!