Down Payment Assistance Programs in Connecticut (2026)
Last updated 05/20/2026 by
Ante Mazalin
Edited by
Andrew Latham
Summary:
Down payment assistance in Connecticut comes primarily from the Connecticut Housing Finance Authority (CHFA), which operates two distinct programs: a low-interest second mortgage and a forgivable loan that disappears entirely after ten years of continuous occupancy.
Both must pair with a CHFA first mortgage and are available statewide through CHFA-participating lenders.
- CHFA DAP Loan: Up to $15,000 as a second mortgage at a low fixed interest rate, covering the down payment and closing costs for buyers who can afford monthly payments but not the upfront costs.
- Time To Own: Up to $25,000 at 0% interest with no monthly payment required, forgiven at 10% annually until the loan vanishes completely on its tenth anniversary.
- Occupation programs: CHFA adds a 0.125% interest rate reduction for teachers and police officers, stackable with either DPA option, with an enhanced 0.25% reduction for qualifying Recruit and Retain teachers.
Connecticut’s housing costs rank among the highest in New England, and the gap between what buyers can afford monthly and what they need at closing is real.
These programs exist specifically to bridge that gap. Unlike many states, Connecticut offers a path to having your down payment fully forgiven if you stay in the home long enough.
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How CHFA Connecticut down payment assistance works
The Connecticut Housing Finance Authority does not lend money directly to homebuyers. CHFA works through a network of nearly 70 participating lenders across the state who originate CHFA-backed mortgages. Down payment assistance is layered onto a CHFA first mortgage; you cannot access either DPA program without qualifying for and receiving a CHFA loan first.
Both DPA programs require a completed homebuyer education class before closing. CHFA offers these classes online and in person through approved counseling agencies across Connecticut. Most sessions are free.
CHFA defines a first-time homebuyer as someone who has not owned a home in the prior three years. Non-first-time buyers may still qualify by purchasing in a federally designated targeted area of the state, but cannot own any other property at the time of closing.
CHFA DAP Loan
The Down Payment Assistance Program (DAP) Loan provides up to $15,000 as a second mortgage on your home. The loan covers down payment and closing costs for buyers who qualify for a CHFA mortgage but don’t have enough saved for the upfront costs.
The DAP loan amount equals 4% of the sales price or appraised value, whichever is less, with a minimum of $3,000. The interest rate is set at the lower of the current CHFA first mortgage rate or 5.00% (5.10%-5.50% APR). Unlike Time To Own, the DAP loan carries monthly payments — it is a standard second mortgage, not a deferred or forgivable loan.
Your lender will verify that you can afford both the CHFA first mortgage and the DAP payment before approving the loan. The minimum down payment for the home itself is typically 3% to 3.5%, depending on your loan type.
Your DAP loan may not exceed that minimum down payment amount.
DAP vs. Time To Own: The DAP loan is better suited for buyers who need a small gap filled and can handle additional monthly payments. Time To Own is better for buyers who need more assistance and want no monthly payment, but Time To Own has limited funds and requires income below 100% AMI. If you qualify for Time To Own, it is generally the stronger option.
Time To Own forgivable down payment assistance
Time To Own is Connecticut’s flagship DPA program, administered by CHFA on behalf of the Connecticut Department of Housing. It provides up to $25,000 at 0% interest with no monthly payment required, and the balance is forgiven at 10% per year until it is gone completely on the tenth anniversary of closing.
The amount you can receive depends on your income relative to the Area Median Income (AMI) in your planning region. Buyers at or below 80% AMI receive assistance covering up to 100% of the loan amount (up to the $25,000 cap). Buyers above 80% AMI but at or below 100% AMI receive assistance covering up to 75% of the loan amount — a maximum of $18,750.
If you sell, refinance, or no longer occupy the home as your primary residence before the tenth anniversary, the remaining unforgiven balance becomes due. The forgiveness is earned through continuous occupancy, not simply by staying on title.
Applicants must be current residents of Connecticut and demonstrate residency for the most recent three consecutive years. The minimum loan is $3,000. Time To Own can cover up to 20% of the purchase price as a down payment and up to 5% of the purchase price toward closing costs.
Funding status (as of May 18, 2026): The Connecticut State Bond Commission authorized an additional $25,000,000 for Time To Own on December 18, 2025. Of that authorization, $24,355,746 remains available for loan reservations. Time To Own has limited funds and reservations are made through participating lenders on a first-come basis. If funds are exhausted, the DAP loan is the remaining CHFA DPA option.
Time To Own income and AMI limits
Connecticut uses Planning Regions rather than counties for AMI calculations. The nine planning regions each carry different income thresholds. Find your town in the table below to identify your planning region, then compare your household income against the AMI limits.
| Planning Region | 100% AMI income limit | 80% AMI income limit | Max TTO at ≤80% AMI | Max TTO at >80-100% AMI |
|---|---|---|---|---|
| Capitol (Hartford, West Hartford, Glastonbury, Enfield area) | $126,600 | $101,280 | $25,000 | $18,750 |
| Greater Bridgeport (Bridgeport, Fairfield, Monroe, Stratford, Trumbull) | $148,900 | $119,120 | $25,000 | $18,750 |
| Lower CT River Valley (Middletown, Cromwell, Essex, Old Saybrook area) | $126,600 | $101,280 | $25,000 | $18,750 |
| Naugatuck Valley (Waterbury, Ansonia, Shelton, Derby area) | $110,000 | $88,000 | $25,000 | $18,750 |
| Northeastern CT (Putnam, Killingly, Sterling, Woodstock area) | $113,700 | $90,960 | $25,000 | $18,750 |
| Northwest Hills (Torrington, Litchfield, New Hartford area) | $116,400 | $93,120 | $25,000 | $18,750 |
| South Central CT (New Haven, Hamden, Milford, Wallingford area) | $113,200 | $90,560 | $25,000 | $18,750 |
| Southeastern CT (New London, Groton, Stonington, Norwich area) | $110,300 | $88,240 | $25,000 | $18,750 |
| Western CT (Stamford, Norwalk, Danbury, Westport, Greenwich area) | $148,900 | $119,120 | $25,000 | $18,750 |
AMI limits shown are effective May 18, 2025. CHFA updates these limits annually. Confirm current limits with your lender before applying.
CHFA specialty programs for teachers and police
Two CHFA programs offer interest rate reductions for qualifying borrowers in specific occupations. Both can be paired with the DAP loan or Time To Own, giving qualifying buyers both a rate reduction and down payment assistance.
The Teachers Mortgage Assistance Program offers teachers with a valid Connecticut certificate who teach in Priority or Transitional School Districts, in subject-matter shortage areas like mathematics, special education, science, or bilingual education, or in the Technical Education and Career System, an additional 0.125% off the below-market CHFA rate.
Teachers buying within the same district get this discount, unless they qualify under the Recruit and Retain criteria, which waives this requirement. Teachers qualifying under Recruit and Retain, graduates of HBCUs, Hispanic-serving institutions, or public high schools in Opportunity Districts, get a 0.25% rate reduction.
The Police Homeownership Program provides the same 0.125% rate reduction for municipal police officers purchasing in the town they work in, and for state police officers purchasing anywhere in Connecticut. Down payment assistance is available alongside the rate reduction.
Neither program provides additional DPA dollars beyond the DAP loan or Time To Own. The benefit is a lower interest rate on the first mortgage, reducing the monthly payment for the life of the loan.
CHFA income limits and purchase price caps
Standard CHFA mortgage programs use income limits and purchase price limits that vary by planning region and whether the property is in a targeted area. Targeted areas carry higher income limits and purchase price caps, and buyers purchasing in a targeted area also receive an additional 0.25% interest rate reduction (not combinable with other rate discounts).
Purchase price limits across most of Connecticut run from $561,885 for existing homes in non-targeted areas up to $750,000 in parts of Western Connecticut. Income limits for standard CHFA mortgage programs range from approximately $124,600 (1-2 person households in many regions) to over $205,000 for borrowers in the Norwalk and Stamford area, where the cost of living is significantly higher.
The CHFA Sales and Income Limits document at chfa.org lists the exact limits by planning region, targeted area census tract, and family size. Your lender can confirm the specific limits that apply to a particular property address.
How to apply for down payment assistance in Connecticut
Both CHFA DPA programs are accessed through participating lenders, not directly through CHFA. Follow these steps to apply.
- Confirm your income and residency. For Time To Own, you must be a Connecticut resident for the most recent three consecutive years and fall within 100% AMI for your planning region. For the DAP loan, confirm you meet CHFA’s income limits by planning region. Use the tables above or the CHFA income limits chart at chfa.org.
- Complete a homebuyer education class. A CHFA-approved homebuyer education certificate is required before closing for both DPA programs. Classes are available online and in person across Connecticut. CHFA maintains a list of approved counseling agencies on its website.
- Find a CHFA participating lender. CHFA maintains a searchable lender directory at chfa.org. Nearly 70 lenders participate statewide. If you are a teacher or police officer, confirm that your lender is familiar with the specialty rate programs.
- Get pre-qualified and select your DPA option. Your lender will confirm which programs you qualify for. If you meet the income requirements for Time To Own and funds are available, that is generally the stronger option due to the forgiveness structure. If TTO funds are exhausted, the DAP loan remains available.
- Verify property eligibility. Both programs require the home to be your primary residence. Properties in CHFA targeted areas may qualify for higher income limits and purchase price caps. Your lender can use the CHFA Resource Map to check a specific address.
- Confirm you cannot own other property. At the time of closing, you may not own any other residential property. This applies to both DAP and Time To Own borrowers.
- Close and occupy the home. For Time To Own, the forgiveness clock starts on the date of loan closing. Each year of continuous primary occupancy earns 10% forgiveness of the original balance.
Other ways to lower your down payment in Connecticut
FHA loans require a minimum 3.5% down payment for borrowers with a 580 credit score and can be layered with CHFA’s Time To Own or DAP assistance to reduce out-of-pocket costs further. VA loans eliminate the down payment requirement entirely for eligible veterans and active-duty service members, and CHFA has a specific Veterans and Military Service Members program that pairs a VA loan with CHFA’s rate structure.
Connecticut’s Department of Economic and Community Development and individual municipalities occasionally offer additional down payment assistance for buyers in specific cities or income brackets. CHFA’s own DAP page notes that local programs exist and recommends contacting your city or town’s Department of Economic and Community Development directly.
Some Connecticut buyers reduce upfront costs through a leasehold homeownership model, which separates ownership of the land from ownership of the structure and significantly lowers the purchase price. Jubilee operates in select communities as a path to homeownership with a lower barrier to entry.
Down Payment Assistance in Other States
Programs vary significantly by state — income limits, assistance amounts, forgiveness terms, and lender networks all differ. These guides cover verified program details for seven other states.
- Oregon: OHCS’s Flex Lending program provides 4-5% of the loan amount as a second mortgage paired with a fixed-rate first, and the OHCS DPA Program reaches up to $60,000 for first-time and first-generation buyers at or below 100% AMI.
- New Jersey: NJHMFA provides $15,000 as a zero-interest second mortgage that becomes fully forgivable after five years of continuous occupancy.
- Massachusetts: MassHousing provides $25,000 at 0% deferred, and ONE+ reaches up to $50,000 for buyers in 29 Gateway Cities.
- Virginia: Virginia Housing’s DPA Grant delivers 2-2.5% of the purchase price as a true gift, never repaid. DHCD’s deferred loan reaches $50,000 for buyers at or below 60% AMI.
- Florida: Florida Housing’s FL Assist provides $10,000 at 0% deferred for 30 years. Hometown Heroes reaches up to $35,000 for Florida workers. Orange County offers tiered assistance up to $70,000.
- Utah: UHC offers up to $27,500 in down payment assistance as a second mortgage, with or without monthly payments. The First-Time Homebuyer Assistance Program adds up to $20,000 for buyers of newly constructed homes.
- Colorado: CHFA provides up to $25,000 as a grant or deferred second mortgage paired with a CHFA first mortgage. First-generation buyers receive a flat $25,000 regardless of loan amount. metroDPA offers a zero-interest deferred second mortgage for Front Range buyers with income below $210,150.
Frequently asked questions
What happens to my Time To Own loan if I sell before year 10?
The unforgiven balance becomes due at closing. If you sell in year four, you have received 40% forgiveness — meaning 60% of the original balance remains and must be repaid from your sale proceeds. The 10% annual forgiveness is only earned through continuous primary occupancy each year.
Can I stack the Time To Own loan with municipal or employer assistance?
Potentially yes, but the lender must confirm that the combined assistance still meets CHFA underwriting requirements and that the total debt does not exceed the maximum allowed for your loan type. Buyers in some Connecticut municipalities may have access to local programs in addition to TTO. Contact your city or town’s Department of Economic and Community Development to ask about local options.
Is there a minimum credit score for CHFA programs?
CHFA’s mortgage programs require a minimum credit score, and the specific threshold varies by loan type (FHA, VA, USDA, conventional). Your CHFA-participating lender will pull a credit report and confirm whether your mid-score meets program requirements. Time To Own and the DAP loan follow CHFA’s standard first mortgage credit requirements — there is no separate DPA credit score threshold.
Do Connecticut’s DPA programs work with VA loans?
Yes. Both the DAP loan and Time To Own can pair with VA loans through CHFA. CHFA also has a dedicated Veterans and Military Service Members program that pairs a VA loan with CHFA’s below-market rate. Eligible veterans using a VA loan typically eliminate the down payment requirement anyway, which may reduce or eliminate the need for DPA. Ask your lender to model both scenarios.
How do I know which planning region my town is in?
Connecticut uses nine planning regions that group towns by geography. The Time To Own AMI document on the CHFA website includes a complete town-to-region lookup table. Hartford, West Hartford, Glastonbury, and most surrounding communities fall in the Capitol region. New Haven, Hamden, Milford, and Wallingford fall in South Central. Bridgeport, Fairfield, Stratford, and Trumbull fall in Greater Bridgeport. Stamford, Norwalk, Greenwich, Darien, and Westport fall in Western CT.
Is Connecticut residency required for all CHFA programs?
Time To Own requires documented residency in Connecticut for the most recent three consecutive years. The standard CHFA first mortgage and DAP loan do not have a multi-year residency requirement, but the home must become your primary residence. You cannot purchase an investment property or vacation home using CHFA programs.
Compare mortgage lenders in Connecticut
CHFA programs are only available through approved lenders. Comparing down payment assistance programs means comparing both the program terms and the lender — rates, service quality, and processing times differ across CHFA’s network of nearly 70 participating lenders. Use the tool below to compare current offers.
Key takeaways
- CHFA Connecticut offers two DPA programs: the DAP Loan (up to $15,000, with monthly payments) and Time To Own (up to $25,000, no monthly payments, forgiven over 10 years).
- Both programs require a CHFA first mortgage, a completed homebuyer education class, and first-time buyer status (no home ownership in the prior three years). Buyers in targeted areas may be exempt from the first-time buyer requirement.
- Time To Own provides up to $25,000 for households at or below 80% AMI, and up to $18,750 for households above 80% but at or below 100% AMI. Income is measured by planning region, not county.
- The forgiveness structure for Time To Own is 10% per year over 10 years. If you sell or leave the home before the 10-year mark, the remaining balance is due at closing.
- Time To Own has limited funding. As of May 18, 2026, $24,355,746 remains from the most recent $25,000,000 authorization. Reservations are made through lenders on a first-come basis.
- Connecticut teachers and police officers can stack a 0.125% to 0.25% interest rate reduction on top of either DPA program. The rate reduction does not provide additional DPA dollars but lowers the cost of the first mortgage.
- Applicants for Time To Own must document continuous Connecticut residency for the most recent three years.
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