The Connecticut Housing Finance Authority (CHFA) offers a Down Payment Assistance Program (DAP) with low interest rates to homebuyers who are eligible for a CHFA first mortgage. This assistance is provided in the form of a supplementary loan with below-market interest rates.

FHA Mortgage Loan Rates

August 17, 2017
FHA Rates for August 17, 2017
Offering 30 Year Fixed Mortgages
Offering 15 Year Fixed Mortgages
Use our mortgage calculators
to see what you can afford!
FHA.com is a private company, is not a government agency, and does not make loans.

Prequalify Now!

Compare mortgage rates for your refinance or home purchase loan.

CHOOSE A LOAN TYPE

then
get
your

FREE CREDIT SCORE

Do you know what's on
your credit report?
FHA.com is a private company, is not a government agency, and does not make loans.

Downpayment Assistance Program

Financial Assistance for Homebuyers in Connecticut

The Connecticut Housing Finance Authority (CHFA) offers a Down Payment Assistance Program (DAP) with low interest rates to homebuyers who are eligible for a CHFA first mortgage. This assistance is provided in the form of a supplementary loan with below-market interest rates.

In most cases, the DAP interest rate will match the interest rate of the borrower’s first mortgage (up to 6 %.)  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, which can be used towards paying upfront payments, such as the down payment on the property, or the closing costs. Additionally, borrowers are also required to pay a $200 application fee for the program and complete a free homebuyer education class before closing on the house.

While the minimum DAP loan amount is $3,000, the actual down payment required might exceed this sum depending upon the purchase price of the home.  Typically, at least 3.5 % of the total purchase price of a home is required for a down payment, which is determined by the mortgage insurer. Some towns and cities provide down payment assistance in the form of low interest loans or grants to eligible residents. Prospective homebuyers should inquire with their local Department of Economic and Community Development to investigate whether this assistance is available.

What else should you know about a DAP loan? 

Loan amounts may vary.
While the minimum DAP loan amount is $3,000, the actual down payment required might exceed this sum depending upon the purchase price of the home.  Typically, at least 3.5 % of the total purchase price of a home is required for a down payment. (This is determined by the mortgage insurer.)    

Loan eligibility may depend on household savings. 
DAP applicants are required to use all liquid assets or household savings above $10,000 towards a down payment.  This requirement does not apply to borrowers under the Police Homeownership Program and the Teachers Mortgage Assistance Program.  Retirement accounts are excluded from the asset test. 

An application fee is required. 
There is a $200 application fee for a DAP loan. 

You will need to complete a homebuyer education class.   
Under this program, a borrower must attend a free three-hour homebuyer education class before closing on the loan.  Classes are held at several locations in the state each month. (See, homebuyer education class schedules.) 

Other down payment assistance may be available from your town or city. 
Some towns and cities provide down payment assistance in the form of low interest loans or grants to eligible residents.  Prospective homebuyers should inquire with their local Department of Economic and Community Development to investigate whether this assistance is available.

Down Payment Grants in Connecticut

The Connecticut Housing Finance Authority (CHFA) offers a Down Payment Assistance Program (DAP) with low interest rates to homebuyers who are eligible for a CHFA first mortgage. This assistance is provided in the form of a supplementary loan with below-market interest rates.