Connecticut first-time homebuyer grants and down payment assistance (2026)

CHFA’s three second mortgages compared

Scroll the table sideways to see every column.

Scroll the table sideways to see every column.

These are single figures per region, not by household size ⁠⁵⁠⁷. Time To Own buyers must also stay within the Make it Yours limits below. Next Move counts only the qualifying income of the borrowers ⁠⁶.

Every borrower must prove three straight years of Connecticut residency with three years of federal tax returns. If a return shows an out-of-state address, CHFA asks for state returns, leases and rent records, and it makes no exceptions ⁠¹⁠¹². Gifts of equity and other non-arm’s-length sales are not allowed. Since Oct. 5, 2026, a home whose appraisal exceeds the sales price, less seller concessions, by 10% or more is ineligible ⁠³. Funding comes from state bonds, so availability can change quickly. CHFA posts the remaining balance on the program page and a weekly dashboard ⁠¹.

Make it Yours income and sales price limits by town

The Make it Yours limits apply to CHFA’s bond first mortgages and therefore to DAP and Time To Own. Income limits have two tiers, 1-2 people and 3 or more, and vary by planning region and town. Higher limits apply inside federal Targeted Area census tracts ⁠⁴.

Only certain census tracts in those towns are Targeted Areas. Enter the address on CHFA’s Resource Map or in the FFIEC geocoder to check ⁠⁴. In a Targeted Area, the first-time buyer rule is waived, but you may not own any other property at closing. You also get 0.25% off CHFA’s rate ⁠⁸. The appraised value cannot exceed 105% of the sales price limit ⁠³.

Credit scores, debt ratios and rate discounts on CHFA loans

The program outlines say CHFA has no credit score overlays on Make it Yours loans. You follow FHA, VA, USDA, Fannie Mae or Freddie Mac rules. Files with scores under 620 go to a CHFA full review and a different servicer ⁠³. CHFA does cap the total debt-to-income ratio ⁠³:

• HFA Advantage and HFA Preferred (conventional): 50%.
• FHA and USDA: 50% with a 660+ score, 45% below 660.
• VA: 55%.
• Teachers with student loans in repayment: 50% under any program.

Next Move requires a 620 score and allows up to 50% DTI per the automated findings. FHA files that need a manual underwrite require 640 and a 43% maximum DTI ⁠⁷. On Oct. 20, 2026, CHFA posted 6.875% for government-insured loans and 7.250% for HFA Preferred and HFA Advantage. Next Move rates are emailed to subscribers daily and are not posted ⁠⁹⁠⁶. Military members and veterans, police, certified teachers, buyers with a household member with a disability, and public housing residents get 0.125% off. Recruit-and-Retain teachers get 0.25%. Discounts cannot be stacked ⁠⁹⁠³.

If you sell within nine years at a profit and your income has risen above the federal limit, you may owe federal recapture tax on a Make it Yours loan. CHFA reimburses it if you file the required forms ⁠⁸. CHFA does not list a mortgage credit certificate among its 2026 homebuyer programs ⁠⁹.

The homebuyer class and the participating-lender rule

Education. Make it Yours and the CHFA assistance loans require a certificate from at least one borrower. It must come from a CHFA-approved counseling agency. Landlord education is also required for 2-4 unit homes ⁠³. You have two free options. The Pre-Purchase workshop is open to any Connecticut resident. The Pre-Closing workshop is only for applicants with a CHFA reservation, and you can skip it if you finished Pre-Purchase within 12 months. Pre-Closing is also offered online through Finally Home!, using a free coupon code from your lender ⁠¹⁰. Next Move requires a class only when every borrower is a first-time buyer. Any HUD-approved course qualifies, but CHFA does not supply a free online code for it ⁠⁶⁠⁷.

Lenders. CHFA does not take applications from the public. Its participating banks and mortgage companies, more than 60 in total, are trained and approved to originate its loans. The lender reserves the loan and any Time To Own or DAP money in CHFA’s system ⁠⁸⁠³.

Hartford, New Haven and Bridgeport assistance

• Hartford, HouseHartford. A HUD-funded forgivable loan of up to 20% of the price, maximum $40,000, for 1-4 family homes and condos in Hartford. It is a second mortgage forgiven over 5 to 15 years while the home stays your primary residence. Buyers put in at least $1,000 (at or below 50% AMI) or $2,000 (above 50%). The June 2026 brochure lists 80% AMI limits labeled 2025: $72,350 for one person, $93,050 for three, $111,650 for five. You need an 8-hour class, a city inspection and one of five participating lenders ⁠¹³.
• New Haven, Down Payment/Closing Cost Assistance. For first-time buyers. It pays up to the greater of 6% of the price or $20,000, as a 0% loan forgiven 20% a year over five years. If you sell early, you repay the balance, or the buyer assumes it. This is what the city’s page said on June 12, 2026. Contact [email protected] ⁠¹⁴.
• Bridgeport, Home Bridgeport. Up to $25,000 in forgivable loans for buyers at or below 80% of HUD area median income: $78,750 for one person, $112,500 for four (FY 2026 limits, effective June 1, 2026). It also requires no ownership in 3 years, liquid assets under $10,000, debt ratios no higher than 35%/45%, a fixed-rate mortgage, and a 1-2 unit home or new FHA-approved condo. Funds go first-come, first-served to buyers under contract ⁠¹⁵.

City aid can usually be combined with CHFA loans, but each city sets its own limits, which are often lower than CHFA’s. Ask both your lender and the city before you sign a contract.

Applying for CHFA help, step by step

1. Check your limits

   Look up your town on CHFA’s Resource Map. Compare your household income with the Make it Yours limits and your region’s Time To Own AMI caps ⁠⁴⁠⁵.

2. Choose a participating lender

   Ask for a CHFA pre-qualification and whether Time To Own money is still available ⁠⁸⁠¹.

3. Take the class

   Register for a free Pre-Purchase workshop through the class calendar, or wait for your lender’s Finally Home! code ⁠¹⁰.

4. Gather documents

   Bring three years of signed federal tax returns or transcripts for every borrower, pay stubs, W-2s, and bank statements. Bring leases and rent records if you filed from another state ⁠³⁠¹².

5. Sign a contract and reserve

   The lender reserves your loan and assistance. The rate lock lasts 60 days, and CHFA must buy the loan within 90 days ⁠³.

6. Close and keep your notes

   Keep the Time To Own or DAP note and the recapture notice for any future sale or refinance ⁠³⁠⁸.

If your file is turned down, ask the lender which rule failed. You can try another participating lender, or ask CHFA’s Homeownership Department at (860) 571-3541 ⁠². See other states on the first-time homebuyer grants page and other Connecticut guides on the Connecticut page.