CHFA Time To Own Program 2026: Up to $25,000 Forgivable DPA

Connecticut’s housing market is among the most expensive in the Northeast, and the gap between what buyers have saved and what lenders require at closing is the most common barrier to homeownership in the state.

Time To Own was designed specifically to close that gap.

Unlike some state programs funded at a fixed amount that close mid-year, this cycle has $22.7 million in available reservations. But the funds are finite, and CHFA closes the program when they run out.

Time To Own is a second mortgage administered by the Connecticut Housing Finance Authority (CHFA) on behalf of the Connecticut Department of Housing. It can only be used in combination with a CHFA first mortgage, not as a standalone loan or with an outside lender.

The loan provides up to $25,000 and carries a 0% interest rate with no monthly payments. It is structured as a forgivable second lien: 10% of the original principal balance is forgiven on each anniversary of the loan closing, with the full loan eliminated at the end of the tenth year.

The funds can be applied to the down payment, closing costs, or both. CHFA allows the loan to cover up to 20% of the home’s purchase price toward the down payment and up to 5% toward closing costs.

The Connecticut State Bond Commission authorized $25,000,000 for Time To Own on December 18, 2025. As of May 26, 2026, CHFA reported $22,790,479 still available for loan reservations.

The program is available “for a limited time,” in CHFA’s own language. When the authorized funds are fully reserved, the program closes until a new Bond Commission authorization is granted. CHFA updates availability weekly on its Time To Own Program Dashboard.

Eligibility for Time To Own requires meeting the requirements for both the second mortgage and the CHFA first mortgage it must be paired with.

First-time buyer requirement: Applicants must be first-time homebuyers, meaning they have not owned a primary residence in the prior three years. Buyers purchasing in a CHFA-designated targeted area are exempt from this requirement. Targeted areas are census tracts in economically distressed communities; buyers can check eligibility by entering a property address in the FFIEC.gov geocoding tool.

Connecticut residency: Applicants must currently live in Connecticut and demonstrate continuous residency for the most recent three years.

No other property at closing: Applicants may not own any other residential property at the time the CHFA mortgage closes.

Minimum credit score: CHFA does not impose its own minimum credit score. The requirement depends on the first mortgage type: FHA loans require a minimum 580 for 3.5% down; VA and USDA have no agency-mandated floor. Borrowers with no credit score may also qualify under their loan type’s guidelines.

Income limits: Income limits vary by Connecticut planning region and household size. The table below shows the 100% and 80% AMI income limits effective May 18, 2025, which determine how much of the $25,000 maximum you are eligible to receive.

Buyers with income above 100% AMI do not qualify for Time To Own. Down payment assistance income limits across programs generally follow this tiered structure, where higher income reduces the available benefit rather than cutting off eligibility entirely.

The CHFA first mortgage that Time To Own must pair with has purchase price limits by planning region, effective January 15, 2026. These limits apply to the total acquisition cost of the property, not the loan amount.

Properties in designated targeted areas may qualify for a slightly higher income limit and a 0.25% rate discount on the CHFA first mortgage. Targeted areas are specific census tracts within these regions, not entire towns. The FFIEC.gov geocoding tool confirms whether a specific address qualifies.

Time To Own cannot be used without a CHFA first mortgage. This is not an optional pairing — the second mortgage application is processed through the same CHFA-approved lender and requires that you meet CHFA’s first-mortgage eligibility requirements simultaneously.

CHFA first mortgages are 30-year fixed-rate loans available in FHA, VA, USDA, and conventional formats. They are funded through state bond proceeds, which means they may be subject to federal recapture tax provisions on sales within nine years of purchase — the same mechanism that applies to TDHCA’s My First Texas Home. The recapture is capped at the lesser of 50% of the gain on sale or 6.25% of the original loan amount. Many borrowers who sell at modest gains or at a loss owe nothing. CHFA reimburses borrowers for any recapture tax paid, provided the borrower completes and files the required documentation. Consult your lender or a tax professional for specifics.

Homebuyer education is required for all borrowers before closing on a CHFA mortgage. CHFA offers both in-person and online options through approved counseling agencies.

Yes. The CHFA first mortgage that pairs with Time To Own is available in FHA, VA, USDA, and conventional formats. The loan type you choose must meet CHFA’s program guidelines and the standard eligibility rules for that loan type (credit score, down payment, debt-to-income ratio).

At year 5, half the loan has been forgiven (5 × 10% = 50%). On a $25,000 loan, $12,500 has been forgiven and $12,500 is still owed. Selling or refinancing in year 5 would require repaying $12,500 at closing.

Yes. CHFA’s income limits apply to the combined household income of all borrowers. Both incomes are counted regardless of how much each person earns or contributes to the loan.

Targeted areas are specific census tracts designated by the federal government as economically distressed. Buyers purchasing in a targeted area are exempt from the first-time buyer requirement and may qualify for a slightly lower CHFA first mortgage rate. Enter the property address at FFIEC.gov to check. Note that targeted area status applies to specific census tracts, not entire towns.

Yes. The full range of Connecticut DPA programs includes CHFA’s standard Down Payment Assistance Program (DAP), which offers a separate second mortgage with no income cap and a lower maximum amount. Local housing authorities in cities like Hartford, New Haven, and Bridgeport also offer city-specific grants. Connecticut has more program options per square mile than almost any other state.

It is forgivable, but it is structured as a loan, not a grant. You do not need to repay it if you remain in the home for 10 years, but the balance is a legal obligation until each annual forgiveness date passes. A true grant has no repayment obligation under any circumstances.

Down payment assistance reduces what you need at closing, but it does not change the monthly cost of homeownership or the structural constraints of conventional mortgage financing. VA loans eliminate the down payment entirely for eligible veterans and active-duty service members. FHA loans lower the down payment threshold but add mortgage insurance.

Leasehold homeownership is a less common path that can reduce the purchase price by 20% to 40% by separating the home from the land it sits on. Jubilee Homes offers leasehold homeownership in Connecticut and other New England states. Understanding the trade-offs of leasehold homeownership is worth reviewing if you are open to alternatives outside the conventional ownership model.