Connecticut Military Homeownership Program

The Connecticut Military Homeownership Program, administered by the Connecticut Housing Finance Authority (CHFA), offers affordable mortgage options and financial support to active-duty military members, veterans, and eligible family members. This program is designed to honor those who serve by making homeownership more accessible and affordable.

Benefits

Provides 30-year fixed-rate mortgages with below-market interest rates to ensure affordable monthly payments.
Offers down payment and closing cost assistance to reduce upfront expenses for eligible homebuyers.
Available to active-duty military personnel, veterans, and National Guard members, including eligible surviving spouses.
Can be combined with other CHFA programs for additional financial assistance and support.

Eligibility Requirements

Applicants must meet the eligibility criteria for military service, including active-duty, veteran status, or service in the National Guard.
Income limits apply and vary based on household size and the location of the property.
The property must be located in Connecticut and used as the buyer’s primary residence.
A minimum credit score is required, typically starting at 620, with lender-specific underwriting standards also applying.
Participants must complete a CHFA-approved homebuyer education course to ensure preparedness for the responsibilities of homeownership.

Additional Information

The Connecticut Military Homeownership Program is a tribute to those who serve, providing them with the tools and resources needed to achieve stable housing and financial security. By offering affordable mortgages and reducing upfront costs, this program supports military families in building a strong foundation for the future while fostering community growth and stability.

Frequently Asked Questions About Our Program

What is the Connecticut Military Homeownership Program?

The Connecticut Military Homeownership Program, offered by the Connecticut Housing Finance Authority (CHFA), provides below-market interest rate mortgages to eligible veterans and active-duty military members. This initiative aims to facilitate homeownership for military families by offering affordable financing options.

Who is eligible for the Military Homeownership Program?

Eligibility extends to veterans, active-duty service members, and unmarried surviving spouses or civil union partners of veterans who died due to military service or service-connected disabilities. Applicants must be first-time homebuyers or not have owned a home in the past three years, unless purchasing in a targeted area.

What benefits does the program offer?

The program offers an additional 0.125% discount on CHFA's already below-market interest rates for qualifying loans. This interest rate reduction makes homeownership more affordable for eligible military personnel and their families.

Are there income and sales price limits?

Yes, applicants must meet CHFA's income and sales price limits, which vary by location and household size. These limits ensure that assistance is provided to those most in need and are subject to periodic adjustments.

Is homebuyer education required?

Yes, all applicants are required to attend a free CHFA-approved Homebuyer Education class prior to closing. These classes help buyers understand the home-buying process and offer tips for maintaining their new home.

What types of properties are eligible?

Eligible properties include single-family homes, townhouses, planned unit developments (PUDs), and condominiums that are FHA/VA-approved or Fannie Mae-eligible. Two- to four-unit homes are also eligible if they have been used as residences for the past five years.

Can the program be combined with down payment assistance?

Yes, the Military Homeownership Program can be combined with CHFA's Downpayment Assistance Program (DAP) loans to help cover down payment and closing costs, further reducing the financial burden on homebuyers.

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Are there specific credit requirements?

While CHFA does not set a minimum credit score, individual lenders may have their own requirements. It's essential to consult with your lender to understand the specific credit criteria applicable to your situation.

Is mortgage insurance required?

Depending on the loan type and down payment amount, mortgage insurance may be required. For example, FHA loans require both upfront and annual mortgage insurance premiums.

Can I use this program for a second home or investment property?

No, the Military Homeownership Program is intended for primary residences only. Applicants must occupy the purchased property as their primary residence.

Are there purchase price limits?

Yes, the program imposes purchase price limits that vary by county and household size. It's important to consult the current CHFA guidelines to determine the applicable limits for your desired location.

Is there a prepayment penalty?

No, there is no prepayment penalty for CHFA loans. Borrowers can make additional payments or pay off the loan early without incurring extra charges.

What happens if I sell or refinance my home?

If you sell or refinance your home within the first nine years, you may be subject to a federal recapture tax, depending on your income and the amount of gain from the sale. CHFA may reimburse you for this tax if certain conditions are met.

Are non-occupant co-borrowers allowed?

No, all borrowers must occupy the property as their primary residence. Non-occupant co-borrowers and co-signers are not permitted under this program.

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How do I apply for the Military Homeownership Program?

To apply, contact a CHFA-approved lender who will guide you through the application process, including verifying eligibility, assisting with necessary documentation, and explaining program requirements.

Is there a deadline to apply for the program?

There is no specific deadline to apply for the Military Homeownership Program. However, program availability is subject to funding, so it's advisable to begin the application process as soon as you are ready to purchase a home.

Are there any fees associated with the program?

Standard loan fees, such as origination and processing fees, may apply. It's advisable to discuss all potential fees with your lender to understand the total cost of the loan.

Is there additional assistance for purchasing in targeted areas?

Yes, purchasing a home in a targeted area may provide benefits such as waived first-time homebuyer requirements and potential interest rate discounts. It's important to verify if your desired location qualifies as a targeted area.

What are targeted areas, and how do they affect eligibility?

Targeted areas are specific communities designated for revitalization based on federal guidelines. Purchasing a home in these areas may provide benefits such as waived first-time homebuyer requirements and potential interest rate discounts.