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.
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!
- 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!