Down Payment Assistance
Down Payment Assistance in Connecticut (2026)
Connecticut homebuyers can access up to $20,000 in down payment assistance through the Connecticut Housing Finance Authority (CHFA). On the state's $386,552 median home price, that covers roughly 26% of a standard 20% down payment.
New to this? Quick definitions
- DPA —
- down payment assistance. Money — as a grant or loan — that helps cover the upfront cash you'd otherwise need to buy a home.
- Grant vs. loan —
- a grant is money you never repay. A loan (forgivable, deferred, or repayable) can come with strings attached, even at 0% interest.
- Forgivable loan —
- the balance is wiped out over time if you stay in the home — but it's still a real loan until then, and selling or refinancing early can trigger repayment.
- Deferred loan (silent second) —
- a second loan on your home with no monthly payments, often called a "silent second" because you won't notice it until you sell, refinance, or pay off your first mortgage — that's when it comes due.
- AMI —
- Area Median Income. The midpoint household income for your county, used to set eligibility — programs list limits as a percentage of AMI (e.g. 80% of AMI).
- Income limit —
- the maximum household income you can earn and still qualify, based on where you live and how many people are in your household.
- Purchase price cap —
- the maximum home price a program will help you buy — homes priced above the cap don't qualify, even if your income does.
Do you likely qualify?
The CHFA Down Payment Assistance Program caps the home purchase price at $652,200 — check that cap against homes you're considering, and the county income limit below.
Primary Program: CHFA Down Payment Assistance Program
maximum assistance
0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage — this is sometimes called a "silent second" because you won't notice it until then.
- Administering Agency
- Connecticut Housing Finance Authority (CHFA)
- Purchase Price Cap
- $652,200
How Down Payment Assistance Works
Most state DPA programs are layered on top of a first mortgage — you apply through an approved lender who originates both the primary loan and the DPA second lien at the same closing. The DPA funds reduce the cash you need upfront.
Grants
Free money — no repayment ever. Typically the smallest amounts but highest value.
Forgivable Loans
Balance forgiven after a set period (usually 3–15 years) if you stay in the home. Selling early triggers repayment.
Deferred Loans
No monthly payments. Balance due when you sell, refinance, or pay off your mortgage.
Mistakes first-time buyers make
- Assuming you don't qualify without actually checking the income limit for your county and household size.
- Treating a "forgivable" loan as free money — it can still come due in full if you sell or refinance before the forgiveness term ends.
- Stacking programs incorrectly, or assuming state and local programs combine automatically without confirming with your lender.
- Skipping the required homebuyer education course, which can delay or disqualify your application at closing.
Pro tips
- Talk to a HUD-approved housing counselor first — it's free and they know every program you may qualify for, not just the state's.
- Apply for mortgage pre-approval alongside your DPA program application; most DPA funds are disbursed through an approved lender at the same closing.
- Check local city and county programs in addition to the state program above — many are stackable and cover different costs.
- Ask exactly what triggers repayment on any loan-based assistance before you sign, not after.
Down Payment Calculator
Down Payment Planner
Connecticut median pre-loaded
Your Savings Plan
Timeline
12.9 yrs
saving $500/mo
No PMI at 20% down
20% or more avoids private mortgage insurance entirely.
Estimate only — does not include investment returns on savings.
Full Calculator →What the Assistance Does on a $386,552 Connecticut Home
A worked example at Connecticut's median home price (Zillow Home Value Index, April 2026), using the same payment model as the Connecticut salary page: a 7.03% 30-year fixed rate (Freddie Mac PMMS, week of September 24, 2026), PMI from the National MI rate card on the 10%-down case, the state's effective property-tax rate and homeowners premium, and principal, interest, tax and insurance held to 28% of gross income.
How much of the down payment it covers
A 10% down payment on a $386,552 home is $38,655, and 20% is $77,310. The $20,000 CHFA Down Payment Assistance Program maximum covers 52% of the first and 26% of the second, leaving $18,655 of a 10% down payment to come from savings, before any closing costs.
Whether a household under the income limit can carry it
Carrying the median home takes $118,500 a year with 20% down, or $135,300 with 10% down and PMI. The first-mortgage income limit at Connecticut Housing Finance Authority (CHFA) is $129,500 (Households of 1 or 2 in most non-targeted towns (e.g., Capitol, South Central regions); $148,925 for 3 or more; higher in Greater Bridgeport ($168,720/$196,840) and targeted areas (as of June 22, 2026)). (Connecticut Housing Finance Authority, retrieved 2026-09-14) That is enough for the median home only with 20% down; with 10% down the payment needs $5,800 more income than the limit allows. At exactly $129,500, the same model supports a price of about $424,096, $37,544 above the median.
The First Mortgage and Closing Taxes This Assistance Has to Cover in Connecticut
Real Estate Conveyance Tax (state and municipal portions)
Connecticut's conveyance tax is paid by the seller at recording. For a typical home it totals 1.00% of the price up to $800,000 (0.75% state + 0.25% town) on sales up to $800,000. (Conn. Gen. Stat. § 12-494). (Connecticut General Assembly, retrieved 2026-09-14) Under that schedule a $386,552 sale owes $3,866, which the statute puts on the seller.
Under § 12-494(c), any targeted investment community (as defined in § 32-222) or municipality with designated manufacturing plants may impose an additional conveyance tax of up to 0.25% of consideration. (Connecticut General Assembly, retrieved 2026-09-14)
Recording fees
$10 for the first page and $5 for each additional page (Conn. Gen. Stat. § 7-34a(a)), plus a $50 fee for each document recorded in the land records (§ 7-34a(e), $45 remitted to the state community investment account) (Connecticut General Assembly, retrieved 2026-09-14)
Connecticut Housing Finance Authority (CHFA): Make it Yours (Bond) first-time homebuyer programs (formerly Government Insured Program / HFA Advantage / HFA Preferred; renamed for reservations on or after June 1, 2026)
Make it Yours (Bond) first-time homebuyer programs (formerly Government Insured Program / HFA Advantage / HFA Preferred; renamed for reservations on or after June 1, 2026) is the first-mortgage programme run by Connecticut Housing Finance Authority (CHFA). (Connecticut Housing Finance Authority, retrieved 2026-09-14) Its purchase-price limit is $566,350 (Existing & new homes, non-targeted towns in most planning regions (e.g., Capitol region incl. Hartford); varies by region and targeted area: $566,350-$750,000 non-targeted, up to $800,000 in targeted areas of Bridgeport, Danbury, Norwalk, Stamford (as of June 22, 2026)), so a $386,552 home is within it. (Connecticut Housing Finance Authority, retrieved 2026-09-14) The income limit is $129,500 (Households of 1 or 2 in most non-targeted towns (e.g., Capitol, South Central regions); $148,925 for 3 or more; higher in Greater Bridgeport ($168,720/$196,840) and targeted areas (as of June 22, 2026)). (Connecticut Housing Finance Authority, retrieved 2026-09-14) Down payment help comes through Down Payment Assistance Program (DAP); also Time To Own - Forgivable Down Payment Assistance: DAP: home purchase assistance up to $15,000 (second mortgage).. (Connecticut Housing Finance Authority, retrieved 2026-09-14)
Frequently Asked Questions
What down payment assistance is available in Connecticut?
Connecticut's primary DPA program is the CHFA Down Payment Assistance Program, administered by the Connecticut Housing Finance Authority (CHFA). It provides up to $20,000 as a deferred loan. 0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage — this is sometimes called a "silent second" because you won't notice it until then.
How much down payment do I need in Connecticut after using DPA?
On a $386,552 home (Connecticut median), a 20% down payment is $77,310. With the CHFA Down Payment Assistance Program covering $20,000, your remaining gap would be $57,310. Many buyers combine DPA with a 3–5% conventional or FHA loan to reduce their cash needed further.
Do I have to repay Connecticut down payment assistance?
0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage — this is sometimes called a "silent second" because you won't notice it until then.
Can I combine Connecticut DPA with other assistance programs?
Yes — Connecticut's DPA programs can generally be combined ("stacked") with local city and county assistance programs, employer homebuyer benefits, and federal programs. Check with an approved lender or HUD-approved counselor to identify all programs you qualify for.
What are the income limits for Connecticut down payment assistance?
The CHFA Down Payment Assistance Program does not publish its income limit as a single percentage of AMI; limits are set in dollars by county and household size. Check the Connecticut Housing Finance Authority (CHFA) website for current limits in your area.
Related Calculators
Home Affordability Calculator
See how much home you can afford in Connecticut
PMI Calculator
Estimate private mortgage insurance on lower down payments
Connecticut First-Time Buyer Programs
State mortgage programs with low rates and low down payments
Mortgage Payments by Price
See full PITI costs for 8 home prices in Connecticut, from $200K to $750K
What to do next
Down payment assistance is one piece of the puzzle. Here's where to go depending on where you are in the process.
Not sure if you qualify?
Check the Connecticut Housing Finance Authority (CHFA) income limits above before ruling yourself out — many buyers qualify without realizing it.
Want the full true cost picture?
DPA covers the down payment, not your ongoing costs. See the true cost of owning a home in Connecticut for the full monthly picture.
Ready to apply?
Most DPA funds are disbursed through an approved lender at closing — get pre-approved and ask specifically about CHFA Down Payment Assistance Program when you apply.