CHFA is proud to offer an additional 0.125% off already below-market interest rate loans to help Teachers become homeowners in the communities where they work. 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.
You must hold a valid Connecticut certificate and;
- Be employed as a teacher in a priority or transitional school district as listed below; or
- Employed by the State of Connecticut in a technical high school that is located in a priority or transitional school district; or
- You graduated from a public high school in an educational reform district (as defined in Section 10-262u of the CT General Statutes); or
- You graduated from a historically black college or university or a Hispanic-serving institution; or
You teach in your respective endorsement area/s in one of the following State-Identified Subject Matter Shortage Areas listed below.
In the case of certified teachers in a priority or transitional school district, or in a technical high school located in a priority or transitional school district, the dwelling must be located in the district in which the school is located.
Priority or Transitional School Districts:
State-Identified Subject Matter Shortage Areas in effect until June 30, 2020:
- 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.
- 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.
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. You must show you have the monthly income to pay both loans, but not enough savings to pay the down payment. The interest rate will be the same as your home 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)
How to Apply
There are nearly 100 CHFA participating Lenders, many with multiple branches in the state. To apply for a mortgage, find a CHFA-Approved Lender near you.