Connecticut’s CHFA offers one of the most generous forgivable assistance programs in the Northeast — Time To Own, worth up to $25,000 — alongside a suite of rate discounts for teachers, police, military members, and buyers with disabilities.
This guide covers what is actually available to first-time buyers in Connecticut in 2026 — the agency behind these programs, the loans and down payment help on offer, who qualifies, and how to apply. For the wider local picture, see our Connecticut first-time home buyer guide.
The CHFA and its home loan programs
Connecticut’s first-time buyer programs are run by the Connecticut Housing Finance Authority (CHFA). Like most housing finance agencies, it does not lend directly — instead it offers below-market first mortgages, bundled with down payment help, through a network of approved local lenders. Its main first-mortgage options are:
- HFA Advantage & HFA Preferred — below-market conventional loans with reduced mortgage insurance
- Government-Insured Mortgage Program — FHA, VA, and USDA below-market loans, all eligible for down payment help
Most of these can be built on top of an FHA, VA, or USDA loan, or a conventional loan, depending on the product you pick — and the real value comes when you pair one with the down payment assistance below.
Down payment assistance in Connecticut
Down payment assistance is the heart of what CHFA offers, and Connecticut gives buyers more than one way to get it. CHFA pairs its mortgages with two assistance options, including a state-funded forgivable loan.
- Time To Own — forgivable second at 0% interest (10% of principal forgiven per year, fully forgiven at year 10), up to $25,000 (up to 20% for down payment plus up to 5% for closing costs).
- Down Payment Assistance Program (DAP) — low-interest repayable second, starting around $3,000, covering down payment and closing costs (amount scales to your loan).
If those terms are unfamiliar, our national guide to down payment assistance explains exactly how grants, forgivable second mortgages, and deferred loans differ — and what each one means when you eventually sell or refinance.
How much help could you get?
On a $300,000 home in Connecticut, Time To Own could provide up to $25,000 as a zero-interest forgivable second — no monthly payment, and forgiven 10% a year so that staying ten years wipes it out entirely. If you need a structured loan instead, DAP offers a low-interest second starting around $3,000. Time To Own funding is replenished periodically, so confirm current availability with CHFA.
Who qualifies in Connecticut?
Every program sets its own rules, and they change periodically, but the common requirements in Connecticut look like this:
- Income limits. CHFA sets income limits by household size and town.
- First-time status. First-time status is generally required, and waived in targeted areas and for some special programs.
- Credit score. A minimum of 620 is typical. Our guide to credit score requirements covers what moves the needle.
- Homebuyer education. Pre-purchase homebuyer education is required.
- Purchase price limits. CHFA sales-price limits apply by area and property type.
Connecticut programs worth knowing about
Beyond the standard offerings, Connecticut aims extra help at specific buyers and places. Watch for:
- Time To Own — the state-funded forgivable down payment loan
- Teachers, Police, and Military rate discounts — roughly 0.125% off the rate
- Home of Your Own — a rate discount for buyers with disabilities
- Smart Rate — a rate reduction to help offset student-loan debt
Mortgage Credit Certificates in Connecticut
CHFA emphasizes below-market first mortgages and its DAP and Time To Own assistance rather than a Mortgage Credit Certificate — verify with CHFA if a tax credit is important to you. A Mortgage Credit Certificate is a federal tax credit worth a percentage of the mortgage interest you pay every year for the life of the loan, and where it is available it can usually be combined with the assistance above — putting money back in your pocket each tax season.
How to apply for Connecticut assistance
- Set your budget first. Our home affordability guide helps you land on a realistic price range before you start shopping.
- Complete a homebuyer education course. Nearly every Connecticut program requires one, and it is usually free and available online.
- Find a participating lender. Not every lender originates CHFA loans, so ask directly which CHFA programs a lender offers and have them run your numbers against a few.
- Get pre-approved and lock in the right program for your income, credit, and target home before you make an offer.
One important note: CHFA program funding and terms change from year to year, and some assistance rounds close when the money runs out. Always confirm current amounts and availability directly with CHFA before you count on a specific figure. Our first-time home buyer checklist keeps the rest of your process on track.
Connecticut first-time buyer programs FAQ
Do I have to be a first-time buyer to get assistance in Connecticut?
First-time status is generally required, and waived in targeted areas and for some special programs.
What credit score do I need for CHFA programs?
A minimum of 620 is typical. Keep in mind a program’s own minimum can sit above the loan’s floor, so confirm the exact number with your lender.
Can I use Connecticut assistance with an FHA, VA, or USDA loan?
Yes. CHFA assistance is built to layer on top of a first mortgage, and FHA, VA, and USDA loans are common partners because their own down payment requirements are already low. Your lender structures both pieces so they close together.
How does Connecticut’s Time To Own program work?
Time To Own is a state-funded forgivable second mortgage of up to $25,000 — up to 20% of the price for the down payment plus up to 5% for closing costs. It charges no interest and requires no monthly payment, and 10% of the balance is forgiven each year, so after ten years in the home you owe nothing. It pairs with a CHFA first mortgage. Because funding is replenished in rounds, confirm current availability with CHFA.
First-time home buyer grants in Connecticut
Looking specifically for grant money? Our guide to first-time home buyer grants in Connecticut covers which programs are true grants, which are forgivable, and the truth about the widely advertised federal grant.