CHFA Downpayment Assistance Program

In an effort to help individuals achieve their dreams of owning a home, the Connecticut Housing Finance Authority (CHFA) offers the Downpayment Assistance Program (DAP). This can go a long way toward helping to cover out-of-pocket expenses associated with a mortgage transaction that many first-time homebuyers could not afford otherwise.

Available Assistance:
DAP assistance funds come in the form of a supplementary loan. In most cases, the DAP interest rate will match the interest rate of the borrower’s first mortgage (up to 6 percent). However, some borrowers under the Homeownership Program, the Home of Your Own Loan Program, the Police Homeownership Mortgage Program, and the Section 8 Housing Choice Voucher Homeownership Program may be eligible for a lower interest rate. Borrowers can apply for a DAP loan of at least $3,000.

Eligibility Requirements:
Any borrower who qualifies for a CHFA first mortgage can also apply for a DAP loan of at least $3,000. There are, however, some additional requirements to be considered eligible for assistance. Applicants must prove that they have sufficient income to pay both loans but don’t have the required savings to afford a down payment and/or the closing costs on the home.  Additionally, applicants are required to pay the $200 application fee for the program, as well as attend a free, 3-hour homebuyer education course before closing on the loan.
 
*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but States and Local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price and income limits.