Last updated: September 1, 2026 · Verified against CHFA, HUD, FHA official data
Connecticut First-Time Home Buyer Programs 2026: CHFA Grants & DPA Guide
The Connecticut Housing Finance Authority (CHFA) offers up to $20,000 in down payment assistance at 0% interest — fully forgiven after just 5 years. Combined with an FHA loan, you can buy a home in Connecticut with virtually $0 out of pocket. Here's everything you need to qualify and apply.
Max DPA
$20,000
Interest on DPA
0%
Min Credit
640
Forgiveness
5 Years
⚠️ ATTENTION: NOT ALL LENDERS ARE APPROVED FOR CHFA PROGRAMS
Don't Waste Time with the Wrong Lender — Most Are Not CHFA-Approved
The CHFA program requires you to work with a CHFA-approved participating lender. Using a lender that isn't certified means your $20,000 DPA grant disappears — even if you qualify. Don't waste weeks in underwriting only to find out at closing. Match with a verified CT-approved lender right now:
🏆 Top 5 CHFA-Approved Lenders in Connecticut (2026)
You must use a CHFA-approved lender to get the $20,000 DPA grant. Here are the top 5 ranked by rate, fees, and CHFA expertise:
| # | Lender | Rate | Fees | Min Credit | Close | Best For | Apply |
|---|---|---|---|---|---|---|---|
| #1 | Rocket Mortgage 🏆 BEST OVERALL | 6.50% | 0.5% | 640 | 21-30d | Best overall + fastest close | Apply → |
| #2 | Liberty Bank 🏦 CT LOCAL | 6.45% | 0.5% | 640 | 30-45d | Best CT-local CHFA expert | Apply → |
| #3 | Webster Bank ⭐ CT FAVORITE | 6.55% | 0.5% | 640 | 30-45d | Best for existing Webster customers | Apply → |
| #4 | Guild Mortgage 📋 DPA EXPERT | 6.55% | 0.5% | 640 | 30-40d | Best for CHFA DPA programs | Apply → |
| #5 | Fairway Independent ⭐ TOP RATED | 6.50% | 0.5% | 640 | 25-35d | Highest customer rating 4.7/5 | Apply → |
Rates shown are estimates for CHFA first mortgage + DPA. Your actual rate depends on credit score, DTI, and loan type. Compare personalized rates →
CHFA Down Payment Assistance: How the $20K Grant Works
CHFA is one of the most generous down payment assistance programs in the Northeast. Here's how it works:
- ✓Up to $20,000 (5% of purchase price)
- ✓0% interest — no interest ever
- ✓No monthly payments on DPA
- ✓Forgiven at 20%/year starting Year 1
- ✓Fully forgiven after 5 years — stay 5 years, it's free
- ✓Use for down payment and/or closing costs
- ★Below-market 30-year fixed rate
- ★Typically 0.25-0.50% below market rate
- ★Available with FHA, VA, USDA, Conventional
- ★No prepayment penalties
- ★Homebuyer education required (free online)
Real Example: Buying a $350,000 Home in Connecticut with CHFA
With CHFA + FHA
- Home price: $350,000
- FHA down payment (3.5%): $12,250
- CHFA DPA: -$20,000
- Your out-of-pocket: $0
- Plus $7,750 toward closing costs!
Monthly Payment Estimate
- First mortgage (CHFA FHA, 6.25%): $1,918/mo
- FHA MIP: $175/mo
- Property taxes (est.): $292/mo
- Homeowners insurance: $150/mo
- DPA payment: $0/mo
- Total: ~$2,535/month
CHFA Income Limits & Purchase Price Limits 2026 by County
| County | 1-2 Person | 3+ Person | Max Purchase Price |
|---|---|---|---|
| Fairfield County | $156,000 | $179,000 | $571,000 |
| Hartford County | $114,000 | $130,000 | $425,000 |
| New Haven County | $118,000 | $135,000 | $450,000 |
| New London County | $114,000 | $130,000 | $400,000 |
| Litchfield County | $114,000 | $130,000 | $400,000 |
| Middlesex County | $118,000 | $135,000 | $450,000 |
| Tolland County | $114,000 | $130,000 | $425,000 |
| Windham County | $108,000 | $124,000 | $375,000 |
Income limits based on CHFA 2026 guidelines. Check approved lenders for your exact county limits.
Compare CHFA-Approved Lenders in 60 Seconds
Get quotes from 5+ CHFA-approved lenders. Soft pull, no credit impact, no obligation.
Compare CT Lenders →Step-by-Step: How to Apply for Connecticut CHFA DPA
Complete Homebuyer Education
Take a HUD-approved 8-hour homebuyer education course. Available online through CHFA's approved providers (~$75-99). You receive a certificate valid for 1 year.
Get Pre-Approved with a CHFA-Approved Lender
CHFA must be processed through a CHFA-approved lender. There are 80+ approved lenders statewide. They will determine your eligibility and the maximum DPA you qualify for.
→ Find CHFA-approved lenders near you →Choose Your Loan Type
Work with your lender to select FHA (3.5% down, 640 score), VA (0% down, veterans), USDA (0% down, rural areas), or Conventional (3-5% down, 640+ score). FHA + CHFA DPA is the most common combination — $20K covers the full 3.5% down + closing costs.
Find Your Home & Make an Offer
Shop within the purchase price limits for your county. The home must be your primary residence. Single-family homes, condos, and townhomes qualify. No investment properties.
Close on Your New Home
CHFA adds about 1 week to the typical closing timeline. Budget 45-60 days total. Your lender handles all CHFA paperwork. The DPA is recorded as a second lien at closing — forgiven 20%/year until fully forgiven in Year 5.
Frequently Asked Questions
What is the CHFA first-time home buyer program?
What are the CHFA income limits for 2026?
How much down payment assistance does CHFA provide?
What credit score do I need for CHFA?
Can I use CHFA with FHA, VA, or USDA loans?
Related Guides
Get Pre-Approved for CHFA DPA
Check your eligibility and get matched with a CHFA-approved lender near you.
Check Eligibility Free →Free · No SSN required · See if you qualify for $20K