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Military Programs

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CHFA extends special benefits to military families preparing for homeownership. We are proud to offer several financing options to help current members and veterans of any branch of Military Services, the Army National Guard, or the Air National Guard purchase their first home. 

Military Mortgage Option

There is an additional 0.125% off already below-market interest rates for veterans or Military Service members loans. This program is open to unmarried, surviving spouses or civil union partners of a veteran who died as a result of Military Service or service-connected disabilities.

 

  • benefits

    Benefits

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

    Eligibility Requirements

    • You must be a first-time homebuyer or have not owned a home in the past three years.
    • Your new home must become 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

    Eligible Properties

    • Single family homes, townhouses, and Planned Unit Developments (PUDs)
    • Condominiums that are FHA/VA-approved or Fannie Mae-eligible
    • 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
  • Targeted Area Exception

    If you are not a first-time homeowner, 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. CHFA will waive the income limit for eligible applicants purchasing in Targeted Areas who are not applying for a Downpayment Assistance Program loan.

Downpayment Assistance Program (DAP) Loan

If you are applying under the military option, you may also automatically qualify for a low-interest supplementary loan of at least $3,000 to cover down payment  costs. You must show you have the monthly income to pay both loans, but not enough savings to pay the down payment costs. The interest rate will be the same as your home loan.

Veterans Homeownership Pilot Program Loan

We recognize that saving for a down payment on a home can be especially difficult for military families who move frequently. To ease the transition from renting to homeownership, CHFA offers a 0% interest loan of up to $10,000 to cover down payment and/or closing costs. This loan can be combined with any CHFA below-market interest rate mortgage!

  • 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 must obtain federal loan insurance when the amount financed exceeds 80% of the appraised value or purchase price, whichever is less. Mortgage insurance may not be required with a down payment of 20% or more.
    • 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 100 approved lenders across the state, so contact a CHFA-Approved Lender near you and apply!

 

 
 
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