Connecticut has some beautiful towns and countrysides, as well as being relatively close to New York City. It's also a state with one of the highest average mortgage debt amounts. The prospect of a large mortgage can make home ownership difficult.
Luckily, local and national programs exist that offer down payment assistance and grants to qualified applicants. The Connecticut Housing Finance Authority and other organizations offer such programs.
If you're thinking about purchasing a home in Connecticut, you may have options to help with the down payment or closing costs. Click on any program below to learn more and see if it can help with your home purchase!
The Connecticut Housing Finance Authority (CHFA) Downpayment Assistance Program (DAP) is down payment assistance of $3,000 or more in the form of a loan.
The interest rate on this loan normally will match the interest rate on the first mortgage of the borrower up to 6%. Borrowers of certain programs (such as the Homeownership Program, the Home of Your Own Loan Program, the Police Homeownership Mortgage Program, and the Section 8 Housing Choice Voucher Homeownership Program) may be eligible for a lower interest rate.
If you’re interested in DAP, you must have sufficient income to pay both your mortgage loan and your Down Payment Assistance loan, and also have to provide proof that you don’t have enough savings for a down payment. There is a $200 application fee and 3-hour long education course required. This education course is free and must be completed before the closing date.
The Fairfield Homeownership Assistance Program is meant for borrowers in Fairfield, CT. It’s a federally funded Homeownership Assistance Program for income eligible first-time homebuyers. Interested borrowers must take and finish a HUD-certified first-time homebuyer counseling program. Two types of assistance are offered: Down Payment Assistance and Closing Cost Assistance. In Down Payment Assistance, 50% of the down payment is covered (up to $30,000) in the form of a deferred zero-interest loan. This type of loan does not need to be repaid until the borrower either sells the property, refinances, transfers the property, or passes away. In Closing Cost Assistance, up to $2,500 of closing costs are covered. This is a grant and does not need to be repaid. Eligible properties must be owner-occupied and located in Fairfield. The properties can be single-family, two-family or a condominium unit. Investment properties are not included.
The income limits for 2022 are as follows:
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This grant is meant for borrowers in Hamden, CT in specific areas: Census Tract #1655 - Highwood, Census Tract # 1656 - Hamden Plains, and the State Street Neighborhood Revitalization Zone. Qualified individuals can receive up to $5,000 in matching funds for down payment assistance. Eligible properties must be the borrower’s primary residence and include detached, single family, and two-to-four family dwellings. Investment properties are not included.
The HouseHartford Homebuyer Assistance Program is for borrowers in Hartford, CT. It’s funded by HUD’s HOME Investment Partnerships (HOME) Program. Down payment assistance is offered as a second mortgage for up to 20% of the price of the home, with a maximum amount of $40,000. This second mortgage is forgiven over a 5 to 15 year period, as long as it remains the borrower’s primary residence. Minimum contributions from the borrower’s own funds (of $1,000 for those at less than 50% of the Hartford area median income, or $2,000 for those at between 50% and 80% less than the Hartford area median income) must be made. Applicants must also take and complete an 8-hour homebuyer education class.
Income limits for 2022 are as follows:
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