Down payment assistance in Connecticut

Connecticut's primary statewide down payment assistance program, run by Connecticut Housing Finance Authority (CHFA). Numbers and eligibility reflect the program's published 2025 guidelines.

Down Payment Assistance Program (DAP)

Second mortgage
Connecticut Housing Finance Authority (CHFA)
Maximum assistance
Up to $25,000 as a low-rate second mortgage
Income limit
Up to $128,425 (statewide; varies by family size)
Home price limit
Up to $546,902
First-time buyer
Required
Eligible loan types
FHA, VA, USDA, Conventional
  • Second-lien rate is currently 1.75% above the first-mortgage rate.
  • Minimum borrower contribution: $1,000 of own funds.

How Connecticut DPA fits into your purchase

Down payment assistance reduces the cash you need at the closing table. Connecticut's Down Payment Assistance Program (DAP) pairs with the standard FHA, VA, USDA, or conventional first mortgage from a participating lender; the DPA flows through the same closing.

Two things to budget for: most state DPA requires a homebuyer-education course (typically online, 6-8 hours, ~$75) and you usually have to use a lender on the agency's approved list. The agency keeps the list public on its website.

Common questions

What down payment assistance is available in Connecticut?

Connecticut's primary statewide DPA is Down Payment Assistance Program (DAP) from Connecticut Housing Finance Authority (CHFA). Up to $25,000 as a low-rate second mortgage. Many Connecticut cities and counties also run additional DPA layered on top.

Do I have to be a first-time buyer?

Yes. The Down Payment Assistance Program (DAP) requires that you have not owned a primary residence in the past 3 years. Veterans and target-area buyers are sometimes exempt.

Can I combine state DPA with FHA, VA, USDA, or conventional?

Yes. Down Payment Assistance Program (DAP) works with these loan types: FHA, VA, USDA, Conventional. The DPA is layered behind your first mortgage as a separate lien (or grant), and both close together.

Does the DPA show up as debt that hurts my approval?

Yes. A second-mortgage DPA has a monthly payment, and that payment is included in your debt-to-income ratio when the lender qualifies you.

What if I sell or refinance soon after closing?

Deferred and second-mortgage DPAs are generally repaid in full when you sell, refinance, or pay off the first mortgage.

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