Why This Program Matters Right Now
Connecticut homebuyers face a difficult entry point when savings must cover both a down payment and closing costs. In a statewide market where upfront cash can determine whether a buyer is able to move forward, forgivable down payment assistance can change the timing of a purchase.
The Connecticut Housing Finance Authority Time To Own Forgivable Down Payment Assistance program is worth highlighting because it targets one of the biggest barriers to homeownership: the cash required at closing. The program provides statewide upfront cost assistance for eligible Connecticut buyers using a CHFA first mortgage.
What This Program Provides
The Connecticut Housing Finance Authority provides the Time To Own Forgivable Down Payment Assistance program. The program offers a minimum of $3,000 and a maximum of $25,000 in assistance.
The funds can be used for down payment and closing costs. Assistance may cover up to 20% for a down payment and up to 5% for closing costs, subject to the program’s $25,000 maximum.
The program is available in Connecticut. Applicants must work through a CHFA-participating lender to determine eligibility and apply.
Program Structure
The CHFA TTO Forgivable DPA program is structured as a forgivable loan. It carries a 0% interest rate and does not require a monthly payment.
The loan is forgiven over 10 years. Ten percent of the principal balance is forgiven annually on the anniversary date of the loan closing until the full balance is forgiven on the 10th anniversary.
The Time To Own loan is only available to eligible applicants who qualify for and receive a CHFA first mortgage. Applicants must meet CHFA first mortgage and Time To Own loan program eligibility and underwriting criteria.
Key Numbers
- Maximum assistance: $25,000
- Minimum assistance: $3,000
- Assistance calculation: Up to 20% down payment and up to 5% closing costs, or up to $25,000
- Interest rate: 0%
- Monthly payment on assistance: $0
- Forgiveness schedule: 10% forgiven annually
- Full forgiveness period: 10 years
- Minimum borrower contribution: N/A
- $0 down payment allowed: No
- Income limits: Yes
- Maximum household income: See CHFA income thresholds
- Minimum household income: N/A
- Credit score required: Not publicly disclosed
- Provider phone number: 860-721-9501
- Provider address: 999 West Street, Rocky Hill, CT 06067
Eligibility Requirements
- Applicants must use a CHFA first mortgage.
- Applicants must meet all CHFA first mortgage eligibility and underwriting criteria.
- Applicants must meet Time To Own loan program eligibility and underwriting criteria.
- Applicants must be current Connecticut residents.
- Applicants must demonstrate Connecticut residency for the most recent three years.
- Applicants who are not first-time homebuyers may apply if they plan to purchase in a targeted area of the state.
- Borrowers may not own any other property at the time of the CHFA mortgage closing.
- Homebuyer training is required.
- Income limits apply.
- Citizenship status allowed: Not publicly disclosed.
- Profession-specific targeting: N/A.
- Identity or culture targeting: None.
- Credit score requirement: Not publicly disclosed.
Property Requirements
- Eligible location: Connecticut
- County coverage: All counties
- Eligible number of units: Single, duplex, triplex and quadruplex
- Allowable property types: Not publicly disclosed
- Maximum purchase price: State-specific maximum purchase price limits apply
- Targeted area rules may apply for applicants who are not first-time homebuyers
How the Process Works
- Confirm that the home will be located in Connecticut.
- Review whether the applicant meets the Connecticut residency requirement.
- Contact a CHFA-participating lender.
- Work with the lender to determine eligibility for a CHFA first mortgage.
- Confirm eligibility for the Time To Own Forgivable Down Payment Assistance program.
- Complete required homebuyer training.
- Apply through the CHFA-participating lender.
- Use approved funds toward eligible down payment and closing costs.
Affordability Impact
This program reduces the upfront cash required to buy a home in Connecticut. Eligible buyers may receive up to $25,000 toward down payment and closing costs, which can help close the gap between savings and the amount needed at settlement.
This program does not reduce the monthly payment. It reduces upfront cash required.
Because the loan has 0% interest and no monthly payment, the assistance does not add a separate monthly loan payment. The benefit is concentrated at closing, where buyers often face the largest cash barrier.
Where This Fits in the Market
The CHFA Time To Own Forgivable Down Payment Assistance program fits into the Connecticut market as a statewide upfront cost assistance option tied to a CHFA first mortgage. Its structure is different from assistance that requires monthly repayment because the Time To Own loan has 0% interest, no monthly payment and an annual forgiveness schedule.
The program also differs from one-time grants because it is structured as a forgivable loan. Buyers should understand that the balance is forgiven over time, with 10% forgiven each year until the 10th anniversary.
A buyer using this program should focus on three core questions: whether they qualify for a CHFA first mortgage, whether they meet the Connecticut residency requirement and whether the property fits CHFA’s purchase price and underwriting rules. Those factors determine whether this homebuyer program can be used for down payment assistance and closing cost assistance.
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