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. CHFA will increase the rate reduction to 0.250% to help Recruit and Retain (*R&R) minority Teachers who meet the eligibility criteria. You must be a first-time homebuyer or have not owned a home in the past three years. If you have owned a home, you may still be eligible if purchasing in a Targeted Area of the state. 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 School District as listed below; or
- Employed by the State of Connecticut in a technical high school that is located in a Priority School District; or
- Teach in one of the following State-Identified Subject Matter Shortage Areas or eligible Alliance District subjects listed below.
To help Recruit and Retain (*R&R) minority Teachers in our communities, additional incentives are available for Teachers who:
- Graduated from a public high school in an Educational Reform District (as defined in Section 10-262u of the CT General Statutes); or
- Graduated from a historically Black college or university or a Hispanic-serving institution as those terms are defined under the applicable federal laws.
Teachers applying under (*R&R) will receive a 0.250% interest rate discount. CHFA target area rate discount of 0.250% will apply when applicable and will not be combined with this programs rate reduction.
Teachers teaching in a Priority school district, or in a technical high school located in a Priority school district, the dwelling must be located in the district in which the school is located. (This restriction is waived for Teachers applying under the (*R&R) eligibility criteria).
Priority School Districts:
State-Identified Subject Matter Shortage Areas:
*Special Education shortage area designation comprises Partially Sighted, Deaf/Hard of Hearing, Blind, and Comprehensive Special Education teaching endorsement codes.
**Alliance Districts Only - The Alliance District program is a unique and targeted investment in Connecticut's 33 lowest-performing districts. (See Connecticut General Statute Section 10-262u)
- 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 Downpayment Assistance or using one of the following programs: HFA Preferred™, HFA Advantage® or CHFA CALP loan funding.
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.
- 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 70 CHFA participating Lenders, many with multiple branches in the state. To apply for a mortgage, find a CHFA-Approved Lender near you.