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Connecticut First-Time Homebuyer Programs

By Elizabeth Elstien

Connecticut has numerous programs for first-time homebuyers, such as down payment assistance or help with closing costs or inspection fees. Programs are administered by the Connecticut Housing Finance Authority (CHFA), helping people buy homes for 40 years.

With several loan programs offering at-market or competitive interest rates, specifications vary depending on if purchasing in or out of a targeted area. Check out these programs and learn why MSN Real Estate rates Connecticut as one of the top 10 states for first-time homebuyers.

Homebuyer Mortgage Program (HMP)

CHFA has partnered with various participating lenders to approve 30-year fixed-rate loans under the CHFA program. Existing and/or new single-family homes, condominiums, townhomes, two- to four-unit multifamily homes and mobile homes may all be purchased if CHFA qualified. The homebuyer must live in the home all year, every year. Income guidelines for the program must also be met and mortgage insurance must be purchased with low down payments.

HFA Preferred Loan Program

The HFA program offers below-market interest rates and low mortgage insurance costs. There are no income restrictions if buying in targeted areas. To apply contact a HFA participating lender.

Home Of Your Own Program (HOYO)

HOYO is similar to the Homebuyer Mortgage Program, but for homebuyers with disabilities. Income limits must be met and proof of disability must be established. Participating lenders are the same as noted for HMP program.

Downpayment Assistance Program (DAP)

Homebuyers can use the Downpayment Assistance Program if help is needed to come up with down payment and/or closing costs. This program lends the homebuyer money for these expenses necessary for closing as a second loan with a low interest rate. Loan amounts start at $3,000 and max out at 25% of the purchase price. Some qualifications to apply for this second mortgage loan are:

  • must already be approved for a CHFA first mortgage
  • pay upfront application fee of $200 with completed application
  • take a free eight-hour homebuyer education class
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