CHFA is proud to offer an additional 0.125% off the already below-market interest rate loan to help Police Officers purchase homes in the participating communities where they work.
- You must be a municipal Police Officer buying a home in the participating city or town where you work or a State Police Officer buying in any participating town.
- 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, 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.
The following municipalities participate in this program:
**Certain portions are targeted areas
If your town does not participate, please call CHFA and we will work with your town on participating in the program. In addition, some municipalities offer grants to cover closing costs. Police Officers are encouraged to check with their city or town.
- 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.
- The loan must be insured through the Federal Housing Administration (FHA), the Veterans Administration, USDA Rural Development, or Private Mortgage Insurance. If you make a down payment of 20% or more, mortgage insurance may not be required.
- 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.
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 Downpayment Assistance or using one of the following programs: HFA Preferred™, HFA Advantage® or CHFA CALP loan funding.
- Existing – Single Family
- New Construction – (Statewide Single Family / 2 unit eligible in Targeted Areas only)
- 2 – 4 units (existing & occupied as residential for the past 5 years)
- Condominiums (FNMA & FHA approved – Includes 2-4 unit projects)
- PUD’s (FNMA & FHA approved)
Downpayment Assistance Program (DAP) Loans
- You may be eligible for a low-interest supplementary second mortgage of at least $3,000 to cover the down payment and closing costs. You must show you have the monthly income to pay both loans. Applicants will be required to make a minimum investment of $1,000 towards the acquisition costs. The interest rate will be the same as your home loan.
How to Apply
CHFA has nearly 70 approved lenders across the state, so find a CHFA-Approved Lender near you and apply!