Down Payment Assistance Programs in Connecticut 2026: Grants, Loans & How to Qualify
The down payment is the biggest hurdle for most Connecticut buyers. With a statewide median sale price of about $458,372 as of May 2026 (Redfin), even an FHA loan’s 3.5% minimum comes to roughly $16,043 before closing costs. Down payment assistance (DPA) programs can cover most or all of that gap.
This guide covers the verified 2026 programs from the Connecticut Housing Finance Authority (CHFA) and city programs in Hartford, New Haven, Bridgeport, and Stamford, with current amounts, income and credit rules, and the steps to apply.
Three types of help, and the difference matters:
- Grant: Money you never repay. CHFA offers a Down Payment Assistance Grant of up to 3% of the first mortgage amount with no repayment.
- Forgivable loan: A loan that converts to a grant if you stay in the home. CHFA’s Time To Own loan is forgiven 10% per year over 10 years.
- Deferred loan: A loan with no monthly payments that you repay later, usually when you sell, refinance, or pay off the first mortgage. Several city programs work this way.
Read the fine print before you sign. A forgivable loan you keep for the full term costs you nothing; the same loan sold in year two means you repay most of it.
State Housing Finance Agency Programs
CHFA is Connecticut’s housing finance agency and the source of most statewide assistance. CHFA assistance is paired with a CHFA first mortgage, so you qualify for both through a CHFA-participating lender. Across CHFA programs the general baseline is a minimum mid credit score of 620, household income within CHFA limits (which vary by county and household size), and completion of a free CHFA-approved homebuyer education class before closing.
Time To Own Forgivable Down Payment Assistance
Time To Own is Connecticut’s flagship assistance program, and it remains active in 2026. As of June 22, 2026, CHFA reported roughly $29.1 million still available for reservations following a $10 million authorization on May 29, 2026.
- Amount: Up to $25,000, covering up to 20% of the down payment and up to 5% of closing costs. The minimum loan is $3,000.
- Structure: A 0% interest loan with no monthly payment.
- Forgiveness: 10% of the principal is forgiven each year on the anniversary of closing, so the loan is fully forgiven after 10 years.
- Residency: You must be a current Connecticut resident and show residency for the previous three years.
- Pairing: Available only with a CHFA first mortgage; you must meet CHFA underwriting criteria.
Income limits for Time To Own are set by area median income and are published on the CHFA program page. Confirm the current limit for your county and household size with your lender.
Down Payment Assistance Program (DAP) Loan
The DAP loan is CHFA’s second-mortgage option for buyers who need help with the down payment and closing costs.
- Amount: Minimum $3,000, up to $15,000, calculated as 4% of the sales price or appraised value, whichever is less.
- Interest rate: The lower of your first mortgage rate or 5.00% (5.10%–5.50% APR).
- Structure: A repayable second mortgage on your home.
- Requirements: You must first qualify for a CHFA first mortgage and complete the homebuyer education class before closing.
CHFA also offers a Down Payment Assistance Grant of up to 3% of the first mortgage amount that does not require repayment. Ask your lender which DAP option fits your purchase.
Teachers Mortgage Assistance Program
For eligible Connecticut teachers, CHFA reduces its already below-market first mortgage rate by an additional 0.125%. It is available to first-time buyers or those who have not owned a home in the past three years. The rate reduction can be combined with DAP or Time To Own assistance, subject to eligibility.
Military & Veteran Mortgage Program
CHFA offers an additional 0.125% off its below-market first mortgage rate for members of the U.S. Armed Forces and veterans. As with the teacher program, this is a rate benefit that pairs with CHFA down payment assistance rather than a separate cash grant.
Home of Your Own Program
If you, or a family member who will live in the home, has a documented disability, the Home of Your Own program offers a reduced-rate CHFA first mortgage. It can be combined with CHFA down payment assistance. Documentation of the disability is required; confirm current terms with a CHFA-participating lender.
Local and County DPA Programs
City programs stack on top of CHFA assistance in many cases. They are funded by limited annual budgets, so confirm availability before you shop.
Hartford — HouseHartford Homebuyer Assistance Program
HouseHartford provides down payment and closing cost assistance up to a maximum of $40,000 for low- and moderate-income buyers purchasing in Hartford. Households earning above 80% of the Hartford area median income do not qualify. The program is administered by the City of Hartford; homebuyer counseling is part of the process.
New Haven — Down Payment and Closing Cost Assistance
The City of New Haven offers down payment and closing cost help to first-time buyers as an interest-free, deferred or forgivable loan. Published amounts vary by source and program year, so treat any specific figure as unconfirmed until your lender or the city housing office verifies the current maximum. Apply through the City of New Haven’s housing program.
Bridgeport — First-Time Homebuyer Down Payment Assistance
Bridgeport offers first-time buyers an assistance loan, administered in partnership with Bridgeport Neighborhood Trust (BNT). Reported terms place the base assistance at up to $15,000, with larger amounts available in some cases under longer forgiveness schedules. Buyers must not have owned property in the past five years and must fall within 80% of the area median income, with a written mortgage pre-approval in hand. Confirm the current cap and forgiveness terms with BNT.
Stamford — Stamford HOME Program
The Stamford HOME program, administered by Housing Development Fund, Inc. (HDF), offers an interest-free loan of up to $20,000 toward down payment and closing costs. A counseling fee is charged at closing. Income and first-time buyer rules apply; verify with HDF.
Eligibility Comparison Table
| Program | Type | Max Amount | Income Limit | Min Credit | First-Time Only |
|---|---|---|---|---|---|
| CHFA Time To Own | Forgivable loan (0%) | $25,000 | CHFA AMI limits by county/household | 620 (general CHFA) | No (CHFA first mortgage rules apply) |
| CHFA DAP Loan | Repayable 2nd mortgage | $15,000 (4% of price) | CHFA AMI limits | 620 (general CHFA) | No |
| CHFA DPA Grant | Grant (no repayment) | 3% of first mortgage | CHFA AMI limits | 620 (general CHFA) | No |
| HouseHartford (Hartford) | Deferred/forgivable loan | $40,000 | ≤80% Hartford AMI | Lender mortgage rules | Program-defined |
| Bridgeport DPA | Assistance loan | $15,000 (base) | ≤80% AMI | Lender mortgage rules | Yes (no ownership in 5 yrs) |
| Stamford HOME | Interest-free loan | $20,000 | Program-defined | Lender mortgage rules | Program-defined |
Credit minimums for city programs generally follow the underlying mortgage lender’s requirements rather than a published city floor. Verify current numbers with each program before applying.
How to Apply for Down Payment Assistance in Connecticut
- Check income and credit first. Pull your credit and confirm your household income against CHFA’s county limits for your household size. Most CHFA assistance needs a 620 mid score.
- Complete homebuyer education. CHFA requires a free homebuyer education class before closing. Take it early, since some city programs require counseling too.
- Get pre-approved with a CHFA-participating lender. Assistance is tied to a CHFA first mortgage, so your lender confirms which programs you qualify for and reserves funds.
- Layer in city assistance. If you are buying in Hartford, New Haven, Bridgeport, or Stamford, apply to the city program in parallel and ask your lender how it stacks with CHFA help.
- Reserve funds and close. Programs like Time To Own have limited budgets, so your lender reserves your assistance before closing. Confirm forgiveness or repayment terms in writing before you sign.
Common Mistakes to Avoid
Assuming all assistance is free money
Only grants and fully forgiven loans cost you nothing. A DAP second mortgage is repayable, and city loans are often deferred. Know which kind you are getting before closing.
Selling or refinancing before the forgiveness term ends
Time To Own forgives 10% per year over 10 years. Sell in year three and you still owe 70%. Match your program choice to how long you plan to stay.
Skipping homebuyer education until the last minute
CHFA requires the class before closing, and city counseling can take time to schedule. A delayed certificate can push back your closing date.
Counting on funds without a reservation
Assistance budgets run out. Available Time To Own funds change month to month. Get your lender to reserve funds in writing rather than assuming money will be there at closing.
Related Connecticut Guides
- Complete down payment assistance guide
- Connecticut state hub — taxes, market data, and buyer resources for CT
- First-time home buyers guide
- Closing costs explained
- Down payment calculator
- How much house can you afford?
- Mortgage pre-approval
- Down payment cost guide
- All states DPA directory
- Neighboring state programs: New York, Massachusetts, Rhode Island, New Jersey
Frequently Asked Questions
Is the CHFA Time To Own program still available in 2026?
Yes. Time To Own is active in 2026. CHFA reported about $29.1 million available for reservations as of June 22, 2026, following a $10 million authorization in late May 2026. Because it is budget-limited, ask your lender to reserve funds before closing.
How much down payment do I need to buy a home in Connecticut?
With the statewide median sale price near $458,372 (Redfin, May 2026), an FHA loan’s 3.5% minimum is about $16,043. Down payment assistance from CHFA or a city program can cover most or all of that.
What credit score do I need for CHFA down payment assistance?
CHFA generally requires a minimum mid credit score of 620. Some cases allow borrowers with no credit score under exceptions. City programs typically defer to your mortgage lender’s credit requirements.
Do I have to be a first-time buyer to get help in Connecticut?
Not always. CHFA assistance follows its first mortgage rules rather than a blanket first-time rule, and the Teachers and Military rate reductions cover buyers who have not owned in the past three years. Some city programs, such as Bridgeport’s, do require that you have not owned property recently.
What is the difference between a grant and a forgivable loan?
A grant is never repaid. A forgivable loan is repaid only if you leave the home before the forgiveness term ends. CHFA’s Down Payment Assistance Grant (up to 3%) is a true grant, while Time To Own is a forgivable loan that clears 10% a year over 10 years.
Can I combine CHFA assistance with a city program?
Often, yes. City programs in Hartford, Bridgeport, and Stamford are designed to stack with a CHFA first mortgage and CHFA assistance. Your CHFA-participating lender confirms how the programs layer for your purchase.
Sources
- Connecticut Housing Finance Authority (CHFA) — Time To Own, DAP, grant, Teachers, Military, and Home of Your Own program pages
- City of Hartford (HouseHartford); Bridgeport Neighborhood Trust; Housing Development Fund (Stamford); City of New Haven — local program terms (confirm current amounts directly)
- Redfin — Connecticut statewide median sale price, May 2026
- U.S. Department of Housing and Urban Development (HUD) — FHA requirements