CHFA is proud to offer an additional 0.125% off already below-market interest rate loans to help Police Officers purchase homes in the communities where they work.
- Reduced below-market rate loan
- Down payment assistance available
- 0% down with no asset limit requirements
- You must be a municipal Police Officer buying a home in the city or town where you work or a State Police Officer buying in a 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 have owned a home in the past three years, you may still be eligible if you plan to purchase in a Targeted Area, which are communities targeted by the federal government for revitalization. CHFA will waive the income limit for eligible applicants purchasing in Targeted Areas who are not applying for a Downpayment Assistance Program loan.
- 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 automatically qualify for a low-interest supplementary second mortgage 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.
How to Apply
CHFA has nearly 100 approved lenders across the state, so find a CHFA-Approved Lender near you and apply!