Connecticut’s housing market offers a wide range of options, from bustling cities like Hartford and New Haven to quiet shoreline towns and scenic rural areas. Whether you're looking in a lively urban center or a peaceful suburb, understanding what financial assistance is available can be just as important as choosing the right home or loan.
For many buyers, especially first-timers and moderate-income households, down payment assistance (DPA) can make homeownership more attainable. Across Connecticut, state agencies, local governments, and nonprofits offer programs like forgivable loans, grants, and low-interest second mortgages to help with upfront costs.
This guide highlights some of the most active and accessible DPA programs in the state. While not exhaustive, it focuses on those with consistent funding and meaningful benefits. We'll keep it updated as programs expand or change.
As you explore your options, you’ll often see the term Area Median Income (AMI). It’s important to understand this term as AMI is often used to determine eligibility.
Statewide Down Payment Assistance Programs
Connecticut has several statewide programs that offer generous down payment assistance, often paired with low-interest or forgivable loan options.
CHFA Time To Own Forgivable Loan
The Time To Own Program offers a 0% deferred loan with no monthly payments. It can cover up to 20% of the purchase price for the down payment and up to 5% for eligible closing costs, with a minimum loan of $3,000. Households at or below 80% of AMI may receive up to $25,000, while households above 80% but not above 100% of AMI may receive up to $18,750. Ten percent of the original principal is forgiven on each anniversary, making the loan fully forgivable after 10 years if the program conditions are satisfied.
Eligibility: Borrowers must qualify for a CHFA first mortgage and be first-time homebuyers unless purchasing in a targeted area. All borrowers must currently live in Connecticut and document at least three consecutive years of state residency, and no borrower may own another property at closing.
CHFA Down Payment Assistance Program (DAP)
The CHFA DAP provides a fixed-rate, fully amortizing second mortgage with a 30-year term. Assistance ranges from $3,000 to the lesser of 4% of the lower of the purchase price or appraised value, or $15,000. The interest rate is capped at the lower of 5% or the borrower’s CHFA first-mortgage rate. Permitted down payment amounts depend on the first mortgage type, while VA and USDA borrowers may use DAP for eligible closing costs.
Eligibility: Borrowers must qualify for a CHFA first mortgage, meet the applicable income and sales-price limits, and complete homebuyer education. The first-time-buyer requirement may be waived in targeted areas, but borrowers cannot own another property at closing and must demonstrate the ability to repay both mortgages.
CHFA Next Move with Deferred DPA
The CHFA Next Move Program combines a 30-year fixed-rate first mortgage with a 0%, non-amortizing deferred second mortgage. The deferred assistance may equal up to 3% of the first mortgage for conventional financing or 3.5% for government-insured financing. The second mortgage generally cannot be subordinated if the first mortgage is refinanced.
Eligibility: The program is available to first-time and repeat buyers with household income at or below 120% of AMI, although no borrower may own another property at closing. Minimum credit scores generally start at 620, or 640 for USDA financing. Homebuyer education is required when all borrowers are first-time buyers, and landlord education applies to qualifying multifamily purchases.
HDF SmartMove CT
Offered by the nonprofit Housing Development Fund (HDF), the HDF SmartMove CT Program provides up to 25% of the purchase price for the down payment and eligible closing costs. The assistance is a repayable second mortgage with a fixed 3% interest rate, not a grant, and requires monthly payments.
Eligibility: Applicants must be first-time buyers, meet HDF income and underwriting limits, contribute at least 1% of the purchase price from their own funds, and complete required homebuyer education and counseling. The first mortgage must come from a participating lender and generally must be a 30-year fixed-rate loan.
HDF CT Forever Home
The HDF CT Forever Home Program provides first-time Connecticut buyers with up to $28,000 for the down payment through a fully amortizing loan carrying a fixed 1% interest rate. Monthly repayment is required. The program also places a 10-year affordability restriction on the property; a home sold during that period must be sold in accordance with the program’s affordable-resale requirements. The assistance may be combined with SmartMove or another compatible HDF product.
Eligibility: Buyers must satisfy HDF’s first-time-buyer, income, sales-price, education, contribution, property, lender, and underwriting requirements.
HDF Live Where You Work CT
The HDF Live Where You Work Program offers up to $25,000 for the down payment and eligible closing costs through a 0% loan. The buyer must purchase a home in the same Connecticut municipality where they work; remote employment does not satisfy the work-location requirement.
Eligibility: Applicants must be first-time buyers, meet household-income limits, and satisfy HDF’s education, contribution, property, lender, and underwriting requirements.
Regional Down Payment Assistance Programs
Some programs serve multiple Connecticut communities within a defined region rather than operating statewide or within a single city.
HDF Hartford Homeownership Equity Fund
The Hartford Homeownership Equity Fund provides eligible buyers in Hartford and surrounding Greater Hartford communities with up to $20,000 through a 0% down payment assistance loan. The assistance may be combined with compatible DPA programs.
Eligibility: Applicants must be BIPOC first-time homebuyers with household income at or below 70% of AMI, purchase in an eligible Greater Hartford community, and complete approved homebuyer education and one-on-one HDF counseling.
Down Payment Assistance Programs by City
Several Connecticut cities offer their own DPA programs using federal or local funds, often with generous terms for first-time buyers.
HouseHartford Homebuyer Assistance Program (Hartford)
The HouseHartford Program (PDF download) provides assistance equal to as much as 20% of the purchase price, up to $40,000, for a home in Hartford. The assistance is secured by a second mortgage and forgiven over five to 15 years, depending on the amount received, as long as the property remains the buyer’s primary residence.
Eligibility: Household income must be at or below 80% of AMI. Buyers may purchase a one- to four-unit home or condominium, must contribute $1,000 if income is at or below 50% of AMI or $2,000 if income is above 50% but not above 80% of AMI, complete an eight-hour homebuyer course, and meet inspection and lender requirements.
New Haven Down Payment and Closing Cost Assistance
The City of New Haven’s Down Payment and Closing Cost Assistance Program provides a 0% forgivable loan that may be used for the down payment, closing costs, or both. Assistance cannot exceed the greater of 6% of the purchase price or $20,000. Twenty percent of the original loan is forgiven on each anniversary, making it fully forgivable after five years. A sale or transfer during the compliance period generally makes the unforgiven balance due unless an eligible transferee assumes the remaining obligation under city rules.
Eligibility: Buyers must be income-eligible first-time homebuyers purchasing a one- to four-unit primary residence in New Haven and must satisfy the city’s education, underwriting, and buyer-contribution requirements.
Home Bridgeport Down Payment Program
Bridgeport’s Program provides up to $25,000 toward the down payment and closing costs through a forgivable second mortgage. The required occupancy and deed-restriction period ranges from five to 10 years, depending on the amount of assistance received.
Eligibility: Buyers must be first-time homebuyers purchasing an eligible one- or two-unit home or qualifying condominium in Bridgeport, have household income at or below 80% of AMI, contribute at least 1% of the purchase price, have a minimum credit score of 620, and complete an eight-hour HUD-approved homebuyer course. Asset, property-value, owner-occupancy, fixed-rate mortgage, and underwriting limits also apply.
New Britain Home Ownership Program (HOP)
New Britain HOP offers second mortgage loans at a fixed 3% interest rate for up to 20% of the purchase price plus eligible non-prepaid closing costs. The minimum loan is $1,000 per dwelling unit, the minimum monthly payment is $30, and repayment terms are set in five-year increments ranging from 10 to 30 years according to qualifying need. There is no prepayment penalty.
Eligibility: Buyers must generally be first-time homebuyers, occupy the property, complete homebuyer education, and purchase an eligible one- to four-unit home in New Britain that passes inspection. Household income for a single-family purchase must be below 80% of AMI. A multifamily purchase may qualify above that threshold when at least 51% of its units are occupied by households at or below 80% of AMI.
Fairfield First-Time Homebuyer Assistance
The Fairfield Homebuyer Assistance Program provides a no-interest down payment loan equal to 50% of the lender-required down payment, up to $30,000. The loan becomes due upon sale, refinancing, transfer, or the borrower’s death. A separate closing-cost grant of up to $2,500 may also be available.
Eligibility: Applicants must be income-eligible first-time homebuyers, generally with no residential ownership during the previous three years, purchase an owner-occupied single-family home, two-family home, or condominium in Fairfield, and complete HUD-approved homebuyer counseling.
Hamden CDBG Homebuyer Assistance Grant
The Hamden CDBG Homebuyer Assistance Grant covers up to 50% of the lender-required down payment, with a maximum grant of $15,000. The assistance is provided as a grant rather than as a second mortgage.
Eligibility: Household income must be at or below 80% of AMI, and applicants generally cannot have owned residential property during the previous three years. Eligible properties include single-family homes, condominiums, townhouses, and owner-occupied two- to four-unit homes in Hamden. Required education, inspection, environmental, lead-safety, purchase-price, first-mortgage, and underwriting rules apply.
Enfield First-Time Homebuyer Program
The Enfield First-Time Homebuyer Program provides up to $10,000, covering as much as 50% of the down payment and/or 100% of reasonable closing costs within the overall limit. In Thompsonville and North Thompsonville, 10% of the assistance is forgiven each year over 10 years as long as occupancy and payment-compliance conditions are met. Elsewhere in Enfield, assistance is a 0% deferred second mortgage that becomes due upon sale, transfer, or specified default.
Eligibility: Applicants must satisfy the program’s first-time-buyer definition, have household income at or below 80% of the applicable CDBG limit, purchase an eligible single-family home, condominium, or two- to four-unit property, complete HUD-approved counseling, and meet inspection, owner-occupancy, affordability, and fixed-rate first-mortgage requirements.
West Haven First-Time Homebuyer Assistance
The West Haven First-Time Homebuyer Program provides up to $7,500 toward the down payment on a qualifying first home in West Haven, limited to an eligible single-family property or condominium. The assistance is structured as a five-year forgivable loan.
Eligibility: Applicants must meet the city’s first-time-buyer, income, underwriting, documentation, property, and owner-occupancy requirements. Applications are administered through West Haven’s Community Development Administration.
Additional Down Payment Assistance Programs in Connecticut
Below are other active programs that weren’t highlighted above but may still be worth exploring.
State Programs
- Federal Home Loan Bank Boston Equity Builder Program
- Federal Home Loan Bank Boston Housing Our Workforce
- Federal Home Loan Bank Boston Lift Up Homeownership
- Chenoa Fund (nationwide program available in Connecticut)
City Programs
Understanding AMI Requirements
One term that you may have noticed used throughout this Connecticut down payment assistance guide is AMI. AMI stands for area median income and is a common metric that DPA programs use to assess homebuyer eligibility.
For many programs, applicant income is limited to a set percentage of area median income. For example, if the median income where you're planning to buy a home is $120,000, and a program has an AMI limit of 80%, you could earn up to $96,000 per year and still qualify for assistance.
You can search for your local area median income using the Fannie Mae AMI Lookup Tool.
Low Down Payment Mortgage Options
Comparing your home financing options? There are several popular mortgage programs that allow buyers to purchase with relatively little money down. In many cases, down payment assistance can be used to cover these down payment requirements in full, and sometimes even a portion or all of your closing costs.
Note: Some down payment assistance programs may only be compatible with certain types of mortgages. Be sure to confirm which loan programs are eligible for the specific DPA program you're considering.
- Conventional: Conventional loans commonly require a 5% down payment. However, certain options allow eligible borrowers to put down as little as 3%, including Conventional 97 for first-time homebuyers and Home Possible for lower-income applicants.
- FHA: FHA mortgages generally have more flexible qualification standards than conventional financing and allow most eligible buyers to purchase with just 3.5% down.
- VA: VA loans are available to eligible veterans, active-duty service members, and certain surviving spouses. These loans often feature highly competitive interest rates and require no down payment.
- USDA: USDA loans offer 0% down financing for eligible buyers purchasing homes in qualifying rural and lower-population areas.
Final Thoughts
Just as Connecticut’s housing landscape is diverse, so too are the financial tools available to help you enter it. For many, down payment assistance can be the key that turns homeownership from a goal into a reality. Use this guide as a starting point, stay informed about current mortgage rates, and experiment with our loan calculators to see how much DPA can help you. With the right plan and support, finding your Connecticut home may be closer than you think.
Check with the organization directly for the most recent guidelines. While programs were fact-checked at the time of writing, requirements change often, and programs become unavailable when funds are exhausted.
