Before making an offer on your first Connecticut home, get a written plan showing three things: what you must pay before closing, what approved assistance will cover, and what you will still owe at closing. Keep moving expenses and an emergency reserve outside that calculation.
A down payment is only part of the cash you need. CHFA assistance may reduce your contribution, but the program’s payment schedule and repayment terms matter just as much as the amount offered.
1. Get pre-approved without letting the approval set your budget
A mortgage pre-approval is conditional, not a guaranteed loan or an assistance award. Ask which income, credit and asset information the lender verified, which conditions remain, and when the letter expires. You are not committed to that lender simply because it issued the letter, according to the CFPB’s guidance updated December 12, 2024.
Prepare current pay stubs, bank statements and the other documents your lender requests. Assistance does not mean you can skip documenting your own funds. The CFPB’s mortgage paperwork checklist provides a starting point; your lender should identify the documents needed for your application.
Set your own comfortable monthly ceiling. Include principal and interest, property taxes, homeowners insurance, any mortgage insurance, utilities, maintenance and any separate assistance-loan payment. For each Connecticut property, verify the tax bill with the municipality and request available heating and utility records rather than borrowing estimates from another house.
Compare official Loan Estimates before choosing a lender. When comparing financing with and without assistance, look at the combined monthly payment, upfront charges and remaining savings—not just the smallest down payment.
2. Build a payment calendar before making an offer
Your cash needs begin before the closing appointment. Use a simple calendar with the amount, due date, recipient and funding source for each payment.
- Offer or contract deposit: Have your agent and attorney confirm the amount, deadline, holder and delivery instructions.
- Inspection and other early expenses: Obtain quotes and confirm when payment is required. Ask the lender whether any lender-related charge must be paid upfront.
- Remaining closing funds: Keep these accessible in an account the lender can document.
- After-closing money: Reserve funds for moving, utility setup and repairs you decide to undertake after taking ownership.
Earnest money can be credited toward the down payment or closing costs, so do not count it twice. Freddie Mac’s upfront-cost guidance, reviewed June 4, 2025, explains this distinction. Its guidance is national, not a Connecticut cost estimate.
Closing costs and cash to close are different numbers. Cash to close reflects the remaining amount due after deposits, financing, credits and adjustments. Prepaid interest, homeowners insurance and initial escrow deposits can affect that amount, as shown in the CFPB Closing Disclosure explainer, updated October 10, 2023.
Ask which approved assistance dollars will appear as closing credits and which expenses you must cover earlier. Do not assume assistance will advance or reimburse your deposit or inspection payment.
3. Understand what CHFA assistance actually changes
CHFA renamed its bond-financed first-time-buyer programs Make it Yours for reservations beginning June 1, 2026. The umbrella includes government-insured mortgages and conventional HFA Advantage and HFA Preferred options. The rebranding itself did not change eligibility, according to CHFA’s May 27, 2026 bulletin.
These mortgage options and the assistance loans below are related but distinct. Have a participating lender verify the applicable income, purchase-price, property and borrower requirements for your application. Being a first-time buyer does not establish eligibility by itself.
DAP: assistance with a monthly payment
CHFA’s Down Payment Assistance Program, or DAP, is a repayable subordinate mortgage, not a grant. The lender outline revised August 4, 2026 caps assistance at the lesser of $15,000 or 4% of the lower of the purchase price and appraised value. It lists a 30-year fixed term and an interest rate equal to the first-mortgage rate or 5%, whichever is lower. These are dated program terms, not a current first-mortgage rate quote. See the CHFA lender program outlines.
Request a written, borrower-specific calculation rather than treating the maximum as your award. DAP can reduce the cash you bring, but its monthly payment belongs in your affordability calculation.
Time To Own: no monthly payment, but conditions remain
Under the August 4, 2026 program outline, Time To Own is a 0% loan with no monthly payment. Ten percent of the original principal is forgiven annually over ten years, subject to its terms. Maximum assistance is $25,000 for borrowers at or below 80% of applicable area median income, or $18,750 above 80% through 100%. It is unavailable above 100%.
Borrowers must meet CHFA first-mortgage requirements and document three consecutive years of Connecticut residency. Confirm the applicable income limit and documentation with a participating lender using the Time To Own program information.
Selling, refinancing the first mortgage or ceasing to use the property as your primary residence can trigger repayment of the unforgiven balance. Review those provisions in the applicant notice revised August 10, 2026. Forgivable does not mean immediately free.
The CHFA program page reported $19,487,381 available for reservations as of September 14, 2026. That statewide balance is not a September 18 balance, an individual approval or a funding guarantee. Before making an offer that depends on assistance, have the lender explain its reservation status and remaining approval conditions.
4. A hypothetical cash-to-close calculation
This example is illustrative only: it is not a Connecticut price estimate, loan quote or CHFA eligibility determination. Assume a $300,000 purchase, a hypothetical 3% down payment, and $7,000 of approved assistance permitted to cover the listed costs. There are no seller credits or other adjustments.
| Item | Amount |
|---|---|
| Down payment | $9,000 |
| Closing costs, prepaids and initial escrow deposits | $8,000 |
| Total before deposits and assistance | $17,000 |
| Less deposit already paid | −$5,000 |
| Less approved assistance | −$7,000 |
| Remaining cash to close | $5,000 |
Suppose the buyer also paid $700 for an inspection, separate from the costs above. The buyer has spent $5,700 before the appointment and still needs $5,000 at closing: $10,700 of their own money through closing, before moving expenses and reserves.
The important distinction is timing. A buyer may qualify for assistance and still need accessible cash early in the transaction. Have the lender reconcile your payment calendar with its estimate so that each deposit, credit and expense appears once.
5. Prepare for the Connecticut closing appointment
Connecticut requires covered real-estate closings to be conducted by an attorney admitted in Connecticut and in good standing under CGS §51-88a. Establish your attorney’s role and communication process early, including who will provide final payment instructions.
For most purchase mortgages, you must receive the Closing Disclosure at least three business days before closing. Compare it with your latest Loan Estimate, checking the interest rate, monthly payment, loan costs, credits and cash to close. Request the promissory note, mortgage and deed for advance review, as recommended in the CFPB’s guidance updated August 21, 2025.
If you use DAP or Time To Own, review the assistance documents separately. Confirm the balance, any monthly payment, repayment triggers and forgiveness provisions rather than assuming the first-mortgage disclosure explains everything.
An October 2026 closing has a specific paperwork checkpoint. CHFA’s August 17, 2026 bulletin makes revised DAP and Time To Own notes and mortgage deeds mandatory for closings on or after October 1, 2026. Revised applicant notices become mandatory for applications on or after that date. The notices also require homebuyer education before CHFA loan commitment, so schedule it early. Ask your lender to confirm the correct forms and education deadline under Bulletin 297.
Before the appointment, confirm identification requirements, the final amount due and the accepted payment method. Arrange the final walkthrough with your agent. At signing, request an explanation of any unfamiliar charge or changed term; afterward, retain your signed documents and confirm the first-payment instructions and key-release arrangements.
6. Avoid three mistakes that can disrupt the plan
Opening new credit before closing. Postpone new credit applications, including financing for furniture or a vehicle, unless you have discussed them with your lender. The CFPB’s guidance reviewed August 28, 2026 advises avoiding additional credit applications during the mortgage process.
Moving money without keeping records. Large deposits and gift funds may require documentation and lender approval. Before a relative transfers money or you consolidate accounts, ask what records are needed. Preserve statements and transfer confirmations; see the CFPB’s document-request guidance updated December 12, 2024.
Trusting emailed wire instructions. Verify account details by calling a previously established phone number—not a number supplied in a new email. Treat a last-minute change as something to independently confirm before sending funds. The CFPB’s closing-scam guidance, updated June 25, 2026, explains this safeguard.
7. Short FAQ
Pre-approval and assistance approval
A mortgage pre-approval does not guarantee DAP or Time To Own funding. Ask the lender to identify the status of each approval separately, including any outstanding documents and reservation conditions.
Getting the deposit back if the purchase falls through
Do not assume a refund is automatic. Before signing, have your attorney explain the contract’s contingencies, deadlines and deposit provisions, including what happens if financing or assistance is not approved.
Choosing a smaller assistance amount
Compare the effect on your remaining savings and future obligations. With DAP, include the monthly payment. With Time To Own, consider possible repayment of the unforgiven balance if your housing or refinancing plans change.
Sources
CHFA program outlines, August 4, 2026; Time To Own program and funding information; CHFA Bulletin 297; CFPB Closing Disclosure explainer; Connecticut attorney-closing statute.
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