CT New Homeownership Down Payment Assistance Program: 5 Things To Know

CONNECTICUT — Qualified Connecticut first-time home buyers can get extra help in making their homeownership dreams a reality. The state announced a new down payment assistance program for low and moderate-income homebuyers.

The new program is for prospective owners applying to the Connecticut Housing Finance Authority’s (CHFA) First-Time Homebuyer Program. It is funded with $20 million in state bonding.

Here are five things to know:

What is the maximum loan amount?

Borrowers may be eligible for up to $50,000 in assistance if they buy a home in a high-opportunity area, which are areas of the state that typically have higher home prices. Other properties are eligible for up to $25,000 in assistance.

Financing is available to cover 20 percent of a down payment and 5 percent of closing costs.

Is the loan forgivable?

Time to Own is a ten-year, 0 percent loan; 10 percent of the loan is forgiven each year after closing, until it is fully forgiven.

Who qualifies?

The program is mainly for first-time home buyers, but may also be used by other who don’t own a home. Eligibility rules are here on CHFA website. Applicants need to be current residents of Connecticut and demonstrate residency for the past three years.

Income and sales price limits vary by town.In Milford the income limit is about $114,000 for households with one or two members and the sales price limit is about $350,000. In Fairfield, the income limit for the same household is about $134,000 and the sales price limit is around $578,000.

Can the program be used with other down payment assistance programs?

Time to Own can be used with other CHFA down payment assistance programs, such as the low-interest CHFA Down Payment Assistance Program, which can help with up to $20,000 of down payment assistance.

What other CHFA assistance programs are there?

CHFA has a number of loan and assistance programs. There are specific programs for police, teachers and veterans/active duty, as well as a number of general programs.