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Mortgage Programs for Residents of Public Housing


Everyone deserves an opportunity to own a home. This program is designed to ease the transition from renting to homeownership by offering below-market interest rate loans to qualified tenants of public housing. This program is available to participants in rental assistance programs and tenants of rental housing supported by CHFA, the U.S. Department of Housing and Urban Development, and local housing authorities.


  • Low interest rate 
  • Reduced rate second mortgage to cover down payment and closing costs  
  • 0% down payment 

Eligible Properties 

  • FHA Approved or Fannie Mae-eligible condominiums 
  • Single-family homes, townhouses, and Planned Unit Developments (PUDs)
  • Two- to-four unit homes that have been used as residences for the past five years


  • You must be a tenant of public housing or receive rental assistance. Residents of properties managed or financed by CHFA, subsidized by HUD, or managed by a local housing authority also qualify.
  • You must meet minimum credit, income, and employment standards. 
  • 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. 
  • 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.

Targeted Area Exception 

If you have owned a home in the past three years, you may still be eligible if you plan to purchase a home in an area of the state targeted for revitalization. CHFA will waive the income limit for eligible applicants purchasing in Targeted Areas who are not applying for down payment assistance.

Downpayment Assistance Program (DAP) Loans

If you have the monthly income to pay mortgage payments, but not enough savings to pay the upfront costs, you may qualify for a reduced rate loan as low as 1% to help you cover the down payment and closing expenses. A DAP loan is a second mortgage on your home. Eligible borrowers must show ability to repay the primary mortgage and the DAP loan in order to qualify for assistance under this program. 

Additional Considerations

You must 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. 

Federal mortgage insurance through the Federal Housing Administration (FHA), the Veterans Administration, or the USDA Rural Development may be required.  Insurance may not be required for borrowers with a down payment of 20% or more. 

In rare cases, you could be required to pay a Federal Recapture Tax, if you sell the house in the future. Should you fall into this category, you may be eligible for reimbursement by CHFA.

How to Apply

CHFA has nearly 100 participating lenders, so contact a CHFA-Approved Lender near you and apply! 

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