Homebuyer Mortgage Program

Benefits

• Below-market interest rate
• Down payment assistance available
• Sales and income limit exceptions in certain areas

Eligibility

• You must be a first-time homebuyer or have not owned a home in the past three years, unless the home you're purchasing is in a targeted area.
• 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, and your gross income must be within the CHFA Income Limits.  The CHFA Resource Map can tell you if you are within program eligibility limits.

Eligible Properties

• Single-family homes, Townhouses, and Planned Unit Developments (PUDs).
• Condominiums that are Federal Housing Authority (FHA), Veterans Administration (VA) or USDA-RD approved.
• Two-to-four unit homes that have been used as residences for the past five years.
• Newly constructed two-family homes that meet FHA energy efficiency standards.

Additional Considerations

• You must attend a free Homebuyer Education course prior to closing. Classes are available online and at locations across Connecticut. The course will help you understand the home-buying process and offer tips for maintaining your new home.
• Mortgage insurance may be required. Your lender will work with you to determine the type of mortgage insurance needed.
• 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 the 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. 

Downpayment Assistance Program (DAP) 

• You may qualify for a low-interest supplementary second mortgage loan of at least $3,000 to cover down payment. In order to qualify, you must show you have the monthly income to pay both loans, but not enough savings to pay the down payment.