How CHFA (Connecticut Housing Finance Authority) loans work, who qualifies, and how to combine CHFA with down-payment assistance to buy your first home in CT.
What CHFA is
The Connecticut Housing Finance Authority (CHFA) is a state-chartered authority that helps moderate-income Connecticut residents buy a first home. CHFA offers below-market mortgage rates, down-payment assistance, and special programs for teachers, police, and military service members.
Most CHFA loans are first mortgages issued through participating lenders — CHFA buys or guarantees the loan, which is why participating lenders can offer rates below typical conventional pricing.
Who qualifies
CHFA programs have three main eligibility filters. You must satisfy all three:
- First-time homebuyer status (no ownership interest in a primary residence in the prior three years) — or buying in a CHFA-designated targeted area where this requirement is waived
- Income limit (varies by household size and county — typically $90K–$130K for most CT counties)
- Purchase price limit (varies by county and property type — typically $400K–$550K for single-family in most counties; higher in Fairfield County)
What you get
The headline CHFA benefits:
- Mortgage rate roughly 0.25–0.75% below conventional 30-year fixed rates
- Down-payment assistance loan: up to $25,000 at a low rate to cover your down payment and/or closing costs
- Optional second mortgage: 'Time to Own' grants up to $50,000 (in eligible towns) for down payment, applied as a forgivable loan over 10 years
- 30-year fixed-rate term (no ARMs)
- Available for FHA, VA, USDA, and conventional loan products
The application process
You don't apply to CHFA directly. Instead, you work with a CHFA-approved participating lender — a list is published on CHFA's website. The lender qualifies you for the program, runs underwriting, and submits the loan to CHFA for purchase or guarantee.
Most CHFA-approved lenders also require you to complete a homebuyer education course (often free, online, ~6 hours) before closing.
Expect the closing timeline to run 7–10 days longer than a conventional purchase because of the CHFA submission step.
When CHFA isn't the right fit
CHFA is excellent for qualified first-time buyers in moderate-priced towns. It's NOT the right tool if:
- Your household income exceeds the county cap
- The home you want exceeds the purchase price limit (common in Greenwich, Westport, Darien, New Canaan)
- You need to close very quickly (CHFA adds ~10 days)
- You're a repeat buyer outside a targeted area