Help with Buying a Home

In an effort to help individuals buy a home, the Connecticut Housing Finance Authority (CHFA) offers the Downpayment Assistance Program (DAP). For homeowners who can afford monthly mortgage payments but cannot cover the down payment costs, the DAP provides financial assistance. Applicants must meet a determined credit score and take a home buyer education course before applying.

Home buyers interested in the DAP must first have a mortgage through an approved CHFA lender. DAP assistance comes in the form of a low-interest loan which is regarded as a second mortgage. Under most circumstances, the DAP interest rate will match the interest rate of the first mortgage.

Eligibility Criteria

To be eligible for a loan through the DAP, individuals must meet the following requirements:

  • Must first qualify and apply for a CHFA mortgage from an approved lender. This means that the borrower must (1) be a first-time homebuyer or have not owned a home in the past three years; (2) the home must be the borrower’s primary residence; and (3) the borrower’s income and the sales price of the house must be within CHFA Sales Price Limits.
  • Must demonstrate their ability to repay both the CHFA first mortgage and the DAP loan.
  • Must use any savings above $10,000 towards the down payment. This excludes funds from a retirement account. Individuals eligible for a Police Officer or Teachers Program loan may have this requirement waived.
  • Must attend a free Homebuyer Education class before closing the sale. Classes are held online and at locations across Connecticut.

To find CHFA-approved lenders, income limit and sales limit information, use the CHFA Resource Map.

During the eligibility process, the borrower’s lender will work with them to determine down payment amount required and verify their ability to repay both the first mortgage and the DAP loan. The loan amount will be at least $3,000 but no more than the minimum down payment required as determined by the lender.

Types of Services & Supports that can be used for CHFA Downpayment Assistance Program (DAP)

For individuals who feel the cost of buying a home may be just out of reach, a DAP low-interest loan can help them achieve their goal of owning a home.

In addition, the mandatory homebuyer education class provides vital information to help borrowers make smart financial decisions. Students will learn how to effectively budget and avoid financial mistakes. There are classes for seeking pre-approval for a mortgage to foreclosure prevention techniques to understanding credit.


Application begins by contacting a CHFA-approved lender. The lender may charge a $200 application fee. Email for other questions.

Find a CHFA-Approved Lender