Connecticut CHFA Homebuyer Mortgage Program Guide

Guide to the Connecticut CHFA Homebuyer Mortgage Program

The Connecticut CHFA Homebuyer Mortgage Program offers affordable financing for first-time homebuyers in Connecticut. This program provides low-interest, fixed-rate mortgages along with the possibility of down payment assistance, making homeownership more accessible. In 2025, the program continues to help individuals and families purchase their first home by offering favorable loan terms and financial support. Below is a comprehensive guide to how the program works and how to apply.

1. Program Overview:

• Purpose: The CHFA Homebuyer Mortgage Program is designed to assist first-time homebuyers by offering affordable mortgage loans and the potential for down payment assistance. The program helps make homeownership more achievable by lowering monthly mortgage payments and reducing upfront costs.
• Loan Terms: The program offers 30-year fixed-rate mortgages, providing buyers with predictable payments. The interest rates are competitive and structured to help keep homeownership affordable for eligible buyers.
• Down Payment Assistance: In addition to offering favorable mortgage rates, the program may provide up to 3% of the home’s purchase price for down payment assistance, which helps cover upfront costs.

2. Eligibility Requirements for 2025:

To qualify for the Connecticut CHFA Homebuyer Mortgage Program, applicants must meet the following criteria:

• First-Time Homebuyer: The program is intended for first-time homebuyers, which is generally defined as someone who has not owned a home in the past three years. There are some exceptions for buyers in certain areas or under specific circumstances.
• Income Limits: Your household income must fall within the income limits established by the program, which are based on the area median income (AMI) for your county. These limits are updated annually to reflect changes in the local housing market and economic conditions.
• Credit Score: A minimum credit score of 640 is required for applicants. Lenders may have additional guidelines, so it is essential to confirm the specific criteria with your approved lender.
• Property Requirements: The home being purchased must be located in Connecticut and must serve as your primary residence. The home must meet certain price limits and other qualifying conditions set by the program.
• Homebuyer Education: All applicants are required to complete an approved homebuyer education course, which ensures that you are financially prepared for homeownership. This course covers topics such as understanding mortgages, budgeting, and managing home-related expenses.

3. How to Apply:

The application process for the CHFA Homebuyer Mortgage Program is straightforward. Follow these steps to apply:

• Assigned Loan Officer: Once you start the application process, you will be assigned a loan officer who will guide you through each step. Your loan officer will verify your eligibility, help you collect necessary documents, and assist in submitting your application.
• Required Documentation: You will need to provide documents such as proof of income, tax returns, credit history, and a certificate from the homebuyer education course to complete your application.
• Submit Your Application: After gathering the required documentation, submit your application to your loan officer. They will process the application and notify you of your eligibility status and next steps.

4. Homebuyer Education Course:

• Mandatory Requirement: All applicants must complete an approved homebuyer education course, which prepares you for the responsibilities of owning a home and managing a mortgage.
• Course Availability: The course is available online or in-person. Upon completing the course, you will receive a certificate that must be submitted as part of your loan application.

5. Down Payment Assistance:

• Assistance Amount: The program offers up to 3% of the home’s purchase price or appraised value for down payment assistance. This helps reduce the upfront financial burden of purchasing a home.
• Repayment Terms: The down payment assistance is typically offered as a deferred loan, meaning no payments are required until the home is sold, refinanced, or no longer serves as your primary residence. Some applicants may also receive the assistance as a forgivable grant, depending on their situation.

6. Finalizing the Loan:

• Approval Process: After your application is processed and approved, your loan officer will guide you through the final steps, including signing the loan documents and preparing for the closing process.
• Closing Costs: While the CHFA Homebuyer Mortgage Program helps with down payments and closing costs, you may still be responsible for some additional costs. Your loan officer will provide you with a full breakdown of any remaining costs.

Our knowledgeable loan officers are here to make your homebuying journey as smooth and stress-free as possible. From application to closing, they will guide you through each step of the process and help you fully understand the terms of the Connecticut CHFA Homebuyer Mortgage Program. With their support, you can confidently take the next step toward homeownership in Connecticut.