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 0.25% 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 (see below). The home must be your primary residence, investment or vacation properties are not allowed.
You must hold a valid Connecticut certificate and;
- Teach in one of the Priority or Transitional School Districts listed below; or
- Teach in the Technical Education and Career System in a technical education and career school that is located in a Priority or Transitional School District; or
- Teach in one of the following state-identified, Subject Matter Shortage Areas or eligible Alliance District subjects listed below; or
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.
In the case of certified Teachers teaching in a Priority or Transitional School District, or in a technical education and career school located in a Priority or Transitional 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 & Transitional School Districts:
Subject Matter Shortage Areas:
*Special Education shortage area designation comprises Partially Sighted, Deaf/Hard of Hearing, Blind, Comprehensive Special Education, and Integrated Early Childhood teaching endorsement codes.
**A district is designated as a high-needs district for teacher shortage purposes if any of the following is true:
The district is an Alliance District; OR The district’s average annual percentage of students who qualified for free or reduced-price lunch was greater than or equal to 43% (over the period of 2014-15 to 2020-21); OR The district’s percentage of students who qualified for free or reduced-price lunch in 2021-22 was greater than or equal to 43%. The full list of High-Needs Districts is available in Appendix A of the Staffing Shortage Areas in CT Public Schools Report.
- 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.
If you are not a first-time homeowner, or have owned a home in the past three (3) years, 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. (You may not own any other property at the time of loan closing)
Applicants purchasing a home in a Targeted Area should follow the income limits for "Targeted Areas" reflected on the CHFA Income, Sales Price Limits, Target Area chart.
The programs published interest rate may be reduced by 0.25% for eligible applicants purchasing in a federally Targeted Area of the state.
- 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 (FHA, FNMA, FHLMC, VA or USDA-RD 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- Participating Lender near you.