First-Time Homebuyer & Homeowner Assistance

chfa
September 6, 2022
If you are a first-time homebuyer looking for the perfect house, or if you are already a homeowner but just need some assistance, the Connecticut Housing Finance Authority (CHFA) is offering two programs that may offer the resources and assistance you need.

Please find information below on the Time to Own - Forgivable Down Payment Assistance Loan and the MYHomeCT Program.
 
For a limited time, CHFA will offer the Time To Own - Forgivable Down Payment Assistance Loan to help alleviate potential homebuyers' inability to cover the down payment and closing costs required to purchase their first home.

The Time To Own Loan is available to eligible homebuyers in conjunction with a CHFA first mortgage loan. Eligible homebuyers may also take advantage of the CHFA Down Payment Assistance (DAP) loan, in addition to the Time To Own - Forgivable Down Payment Assistance loan Program.


 
Benefits:
  • 0% Interest rate with no monthly payment required
  • 10% of the principal balance will be forgiven annually, on the anniversary date of the loan closing, until the loan is fully forgiven on the tenth anniversary
  • Financing to cover up to 20% down payment and up to 5% closing costs
  • Loan amounts up to $50,000 for homes located in High or Very High Opportunity Areas
  • Loan amounts up to $25,000 for homes located in areas other than High or Very High Opportunity Areas
Eligibility Requirements:
  • The Time To Own loan is only available to eligible applicants that qualify for and receive a CHFA first mortgage
  • The Time To Own loan may also be used in conjunction with other down payment assistance programs
  • Applicants must be a current resident of Connecticut and able to demonstrate residency for the most recent three (3) years
  • Applicants who are not first - time homebuyers may also apply if they plan to purchase in a targeted area of the state.  Borrowers may not own any other property at the time of the CHFA mortgage closing
Additional Considerations:
  • The minimum Time To Own loan amount is $3,000
  • Applicants must meet all CHFA first mortgage and Time To Own loan program eligibility and underwriting criteria.  The CHFA- Participating Lender will work with applicants to determine complete program eligibility requirements
  • Learn more about taking the first steps to becoming a homeowner here

Additional Program Resources:
Apply for Time to Own Loan
 
Connecticut has been awarded approximately $123 million from the U.S. Department of the Treasury’s Homeowner Assistance Fund (“HAF”) program. The HAF Program in the State of CT is known as MyHomeCT and is being administered by the CHFA. Homeowners can apply for up to $50,000 in grant assistance.

Benefits:
  • Mortgage delinquencies/payment assistance
  • Non-escrowed real estate taxes (not included in mortgage payment)
  • Condominium and/or homeowners’ association fees or special assessments
  • Non-escrowed (not included in mortgage payment) homeowners’ insurance and flood insurance
  • Water and sewer liens
  • Ground lease or lot payments
  • Fees that were advanced by the loan servicer/lender on behalf of an applicant with a reverse mortgage

Eligibility Requirements:

  • Applicant must live in the state of Connecticut and occupy the property as their primary residence
  • Applicant/household member must have experienced a COVID-19 related financial hardship after January 21, 2020, or experienced a financial hardship before January 21, 2020, which was then exacerbated by the pandemic. Assistance for a delinquency prior to January 21, 2020, is capped to three months
  • Property must be an owner-occupied 1-to-4 unit house, condominium, townhouse, or manufactured home
  • Homeowners applying for mortgage assistance must have a mortgage that had a principal balance at or below the Federal Housing Finance Agency’s conforming loan limits for Fannie Mae and Freddie Mac at time of origination
  • Household income must be equal to or less than 150% area median income (AMI), adjusted for household size

Additional Program Resources:
Apply for MyHomeCT