Ask a hundred renters in Connecticut why they haven't bought yet and most won't say credit or income. They'll say the down payment. Connecticut has two state programs built for exactly that problem, and most buyers have never heard the details. Here they are in plain English.
Down payment assistance, or DPA, is money from a state or local program that covers some or all of your down payment and closing costs. It comes in three shapes: a grant you never repay, a second mortgage you repay over time, or a forgivable loan that disappears if you stay in the home long enough. Connecticut's programs run through the Connecticut Housing Finance Authority, known as CHFA.
CHFA's standard program is a second mortgage that sits behind a CHFA first mortgage. It covers your down payment and, in some cases, closing costs. You repay it monthly over a set term at a low fixed rate. It's not free money, but it turns a lump sum you don't have into a small monthly payment you can plan around.
To use it, your first mortgage has to be a CHFA loan. CHFA first mortgages can be FHA, VA, USDA, or conventional, so you're not giving up choice on the main loan. Income and purchase-price limits apply and vary by town and household size.
Time To Own is the program people mean when they say "Connecticut gives you money to buy a house." It's a second loan with no interest and no monthly payment. Each year you stay in the home, one-tenth of the balance is forgiven. Stay ten years and you owe nothing. Sell or move out early and the remaining balance is due at that point.
Here's what matters most for 2026:
That last point is the one that catches buyers. Time To Own isn't a faucet. It's a bucket. The lender reserves your funds when you're under contract, so being pre-approved with a lender who watches the balance matters.
The rules differ slightly by program, but the common requirements are:
If you're not sure whether you're a "first-time buyer," you probably are. Owning a home more than three years ago doesn't count against you.
The most common structure looks like this: an FHA first mortgage covers 96.5% of the price, Time To Own or CHFA DPA covers the 3.5% down payment, and a seller credit covers part of the closing costs. Plenty of Connecticut buyers close with very little of their own cash at the table. The same idea works with a conventional first mortgage for buyers with stronger credit who want mortgage insurance that can eventually drop off.
Your Home Finance Advisor's job is to run both versions and show you the monthly payment on each, because the cheapest way in isn't always the cheapest way to own.
You don't need a full application to find out whether you qualify. Bring last year's tax return or W-2, a recent pay stub, a recent bank statement, and a rough idea of the towns you're shopping. With that, a Home Finance Advisor can check income limits for your household size, confirm first-time buyer status, and tell you which program and how much assistance you'd likely qualify for. If a class is required, we'll point you to an approved one you can finish online in an evening.
Picture a couple in Meriden earning a combined income under the area limit, buying a $320,000 home with an FHA first mortgage. The 3.5% down payment is $11,200. Time To Own covers it. The seller agrees to a credit toward closing costs. The couple brings a small amount for prepaid taxes and insurance and walks away with keys and their savings intact. Ten years later, the assistance is fully forgiven. Numbers vary, but that structure is common.
Get your numbers in about 2 minutes — no Social Security number, no hard credit pull, no obligation. Get pre-approved or call our Monroe office at (203) 452-9899 and talk it through with a real person.
Is Time To Own a grant or a loan?
It's a forgivable loan. There's no interest and no monthly payment, and ten percent of the balance is forgiven each year for ten years. If you sell or move out before then, the unforgiven balance is repaid at that time.
Can I use CHFA assistance with an FHA loan?
Yes. CHFA first mortgages can be FHA, VA, USDA, or conventional, and the assistance sits behind whichever one you choose.
Do I have to be a first-time buyer?
Generally yes, defined as no home ownership in the past three years. Buyers purchasing in state-designated targeted areas may be exempt from that rule.
How do I find out if a town is a High Opportunity Area?
CHFA publishes the list. Your lender can check a specific address in a few minutes and tell you which assistance amount applies.
What if the Time To Own funds run out?
Reservations pause until the next funding round. A CHFA DPA second mortgage is often available in the meantime, and your lender can switch the structure without restarting your approval.
Written by Gaetano Ciambriello, Home Finance Advisor at AFC Mortgage Group (NMLS #1783508). AFC Mortgage Group LLC | NMLS #2801 | Monroe, CT | Equal Housing Lender. This article is educational and is not a commitment to lend. All loans are subject to credit approval and program guidelines.
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