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HFA Advantage® and HFA Preferred™ Loan Programs


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.


  • benefits


    • No upfront mortgage insurance costs
    • Lower monthly mortgage insurance costs
    • CHFA Down Payment Assistance Program Loans available
  • eligible-properties

    Eligible Properties

    • Single-family homes, Townhouses  
    • Fannie Mae or Freddie Mac eligible Condominiums
    • Planned Unit Developments (PUDs)
    • Two-to-four unit homes


  • eligibility

    Eligibility Requirements

    • You must be a first-time homebuyer or have not owned a home in the past three years.
    • The home must be your primary residence.  Investment or vacation properties are not allowed.
    • The sales price of the home must be within the CHFA Sales Price Limits.  
    • The applicants qualifying gross income cannot exceed the CHFA  established eligibility Income Limits based on household size. 

Targeted Areas 

  • 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.



  • additional-considerations

    Additional Considerations

    • 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!

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