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.