Down Payment Path

Down Payment Assistance Programs in Connecticut

Connecticut provides a variety of programs to assist buyers with down payment and closing costs. These programs are designed to support a wide range of buyers, ensuring homeownership is within reach for more residents of the Constitution State.

CHFA Downpayment Assistance Program (DAP)

The Connecticut Housing Finance Authority (CHFA) Downpayment Assistance Program (DAP) offers low-interest loans to help cover upfront costs.

  • Provides a second mortgage loan to cover down payment and closing costs.
  • Available to buyers who qualify for a CHFA first mortgage.
  • Low fixed interest rates with repayment terms matching the first mortgage.
  • Open to all eligible buyers, not just first-time homebuyers.

HDF SmartMove Program

The Housing Development Fund (HDF) SmartMove Program provides financial assistance for buyers seeking to cover down payment and closing costs.

  • Offers low-interest second mortgages for eligible buyers.
  • Can provide up to 20% of the home’s purchase price.
  • Repayment terms vary but are designed to be affordable for buyers.
  • Open to all income-eligible buyers.

Time To Own Program

The Time To Own Program, administered by the CHFA, offers forgivable loans to reduce upfront costs for homebuyers.

  • Provides up to $50,000 for down payment and closing costs.
  • Forgivable over 10 years, provided residency requirements are met.
  • Available to buyers meeting income and purchase price limits.

USDA Rural Development Loans

For buyers in rural parts of Connecticut, the USDA Rural Development Loan offers affordable financing options.

  • No down payment is required for eligible buyers.
  • Designed for low- to moderate-income buyers in designated rural areas.
  • Can be combined with other assistance programs to cover closing costs.

Local City and County Programs

Many cities and towns in Connecticut offer additional assistance tailored to local homebuyers.

  • Programs in areas like Hartford, New Haven, and Stamford provide grants or low-interest loans for down payment and closing costs.
  • Eligibility criteria vary, but many are open to buyers beyond first-time purchasers.
  • Some programs offer additional incentives for public service workers or residents purchasing in targeted neighborhoods.

Connecticut’s down payment assistance programs aim to reduce financial barriers and make homeownership more accessible. Whether you're purchasing your first home or upgrading, these resources can help you achieve your dream of owning a home in the Constitution State.