First-Time Home Buyer Programs in Connecticut 2026

Connecticut’s first-time buyer mortgages come from the Connecticut Housing Finance Authority (CHFA) through nearly 70 participating lenders: below-market 30-year fixed loans under its “Make it Yours” bond limits. They pair with Time To Own, a 0% loan of up to $25,000, forgiven 10% a year over ten years.

CHFA makes the first mortgage and both down payment loans (Time To Own on behalf of the Connecticut Department of Housing), so one CHFA lender handles the whole application. You can pair the first mortgage with Time To Own or with DAP, not both: CHFA allows ‘only … one form of subordinate financing.’ How much help you can get is covered on the Connecticut down payment assistance page. This page covers the rest: which CHFA mortgage fits, whether you count as a first-time buyer, the town-by-town limits, the rate discounts and the required class.

CHFA’s first mortgages and who each one is for

• Government Insured Mortgage Programs. These are FHA, VA and USDA Rural Development loans with a below-market rate. They are for first-time buyers and for anyone who has not owned a home in the past three years. Repeat buyers can use them in a targeted area.
• HFA Advantage and HFA Preferred. These are Freddie Mac and Fannie Mae conventional loans, 30-year fixed, with “no upfront mortgage insurance costs” and lower monthly mortgage insurance. The ownership and targeted-area rules match the government loans.
• Next Move with Deferred DPA. A non-bond, 30-year fixed loan for first-time and repeat buyers who “may not qualify for the more restrictive Make it Yours Program requirements.” Income can be up to 120% of area median income. There is no maximum sales price, and the credit minimum is 620. It must be paired with a deferred down payment loan of up to 3.5% of the first mortgage, at 0.00% interest.

CHFA also lists a mobile manufactured home loan, for year-round homes in a state-licensed mobile home park, and FHA 203(k) and conventional renovation loans in a pilot program.

The first-time rule and Connecticut’s targeted areas

CHFA’s guide puts it this way: “You must be a first-time home buyer or have not owned a home in the past three years.” If you owned a home more recently, the government and HFA loans are still open to you when the house is in a federally targeted area. You may not own any other property at the time of loan closing. A targeted-area purchase also gets 0.25% off CHFA’s published rate. CHFA’s Resource Map shows which census tracts qualify. On CHFA’s limits chart, the towns with eligible tracts carry an asterisk, among them Hartford, New Haven, Bridgeport, Waterbury, Stamford, Norwalk and Danbury.

Make it Yours income and sales price limits, June 22, 2026

The bond limits are set by planning region. Income is split into households of 1 or 2 and 3 or more, and targeted tracts have higher caps. Some rows from CHFA Form 064-0308, revised 6-22-26:

Look up every other town on CHFA’s Resource Map, which shows the income and sales price limits for each town. Next Move is the exception: it has no sales price limit, and its income test is 120% of AMI, based “on qualifying repayment income only.”

Time To Own and DAP, briefly

• Time To Own. A 0% loan with no monthly payment. CHFA says it can finance ‘up to 20% down payment and up to 5% closing costs,’ with a minimum of $3,000 and a maximum of $25,000. “Ten percent (10%) of the principal balance will be forgiven annually.” You need a CHFA first mortgage and three years of Connecticut residency. Repeat buyers qualify only in a targeted area. CHFA offers it “for a limited time.” Its page said $18,010,031 was available for reservations as of September 21, 2026, after the State Bond Commission added $5,000,000 on September 8. The income cap is 100% of AMI by planning region, such as $129,200 in the Capitol region. Your income against AMI sets how much Time To Own you can get: at 80% of AMI or below, ‘Up to 100% of the loan amount’; above 80% and up to 100%, ‘Up to 75% of the loan amount.’
• Down Payment Assistance Program (DAP). DAP cannot be combined with Time To Own. A repayable second mortgage for 4.00% of the lower of sales price or appraised value. It is at least $3,000 and at most $15,000, and never more than the minimum down payment your loan requires. The rate is your first-mortgage rate or 5.00% (5.10%-5.50% APR), whichever is less. You have to show you can repay both loans.

Rate discounts for teachers, the military, police and others

CHFA takes 0.125% off its published rate for military service members and veterans, State Troopers and municipal police officers, and Connecticut-certified teachers who qualify. The same cut applies to buyers who are disabled or who have a disabled household member living with them, and to public housing residents buying a home. Teachers who meet the Recruit and Retain criteria get 0.25%.

The teacher discount requires a valid Connecticut certificate and, among the routes CHFA lists: teaching in a Priority or Transitional School District (31 are listed, including Bridgeport, Hartford, New Haven and Waterbury), teaching in a listed subject shortage area such as mathematics 4-12 or special education, or meeting the Recruit and Retain criteria. Borrowers “cannot combine the Target Area discount with any other discount rate”; where two could apply, CHFA gives the higher one.

The homebuyer class CHFA requires

“One of the following Homebuyer Education Workshops is required for anyone obtaining a CHFA loan”: the free Pre-Purchase workshop, or the Pre-Closing workshop. Pre-Closing is open only once you have a CHFA loan reservation, and at least one applicant has to attend. It can be taken online through Finally Home! with a free coupon code from your lender. Buying a two-to-four family home adds a Landlord Education Workshop. Classes run on weekday evenings and Saturdays, and some agencies teach in Spanish.

Recapture tax and CHFA’s reimbursement

CHFA’s bond-financed loans can trigger federal recapture tax, but only when all three conditions are met: you sell within nine years, your income has risen significantly, and you make a gain. CHFA’s lender page says you “may be eligible to receive reimbursement from CHFA” if you pay the tax and file the required forms. You receive the income figures that matter at application and again at closing. Keep those documents.

Applying with a CHFA lender

CHFA’s guide notes that “You are not obligated to get your mortgage from the lender that pre-qualifies you.” Once the seller signs your offer, CHFA counts 90 days to get the mortgage, the inspection and the closing done. At closing, bring two forms of ID and a certified cashier’s check for closing costs. Use the mortgage calculator to size the payment on a CHFA first mortgage plus a DAP loan, and read about pre-approval before you call a lender.

Connecticut first-time buyer questions

I sold my condo two years ago. Can I still get a CHFA loan?

Yes, in two ways: buy in a federally targeted area and own no other property at closing, or use Next Move, which is open to repeat buyers anywhere in the state.

What is the most I can pay in Stamford with a CHFA bond loan?

$750,000, or $800,000 in Stamford’s targeted census tracts, under the June 22, 2026 limits.

Is Time To Own money still available?

Yes. As of September 21, 2026, CHFA reported $18,010,031 available for reservations. The program is offered “for a limited time,” so your lender has to reserve it.

Can I stack a teacher discount with the targeted-area discount?

No. CHFA applies the higher discount. A Recruit and Retain teacher buying in a targeted area gets 0.25%, not 0.50%.

Do both of us have to take the homebuyer class?

For the Pre-Closing workshop, CHFA requires at least one loan applicant to attend.

More on buying in Connecticut

• Connecticut closing costs and conveyance tax
• Connecticut state hub
• Mortgage lenders in Connecticut
• Before you call a CHFA lender: how much house fits your income and how big a down payment you need
• Background on the insured loans CHFA offers: FHA requirements, VA home loans, FHA against conventional
• Nearby: New York, Massachusetts, Rhode Island