Government Insured Mortgage Programs

Benefits

• Below-market interest rate
• Down payment & closing cost assistance available
• Target Area rate discount may apply

Eligibility

• You must be a first-time homebuyer or have not owned a home in the past three years, unless the home you're purchasing is in a targeted area.
• The home must be your primary residence. Investment or vacation properties are not allowed.
• The sales price of the home must be within the CHFA Sales Price Limits, and your gross income must be within the CHFA Income Limits.  The CHFA Resource Map can tell you if you are within program eligibility limits.

Eligible Properties

• Single-family homes, Townhouses, and Planned Unit Developments (PUDs).
• Condominiums that are FHA,  VA or USDA-RD approved, as applicable.
• Two-to-four unit homes that have been used as residences for the past five years.
• Newly constructed two-family homes that meet FHA energy efficiency standards.

Additional Considerations

• You must attend a free Homebuyer Education course prior to closing. Classes are available online and at locations across Connecticut. The course will help you understand the home-buying process and offer tips for maintaining your new home.
• Mortgages are insured/guaranteed through FHA, VA or USDA-RD, as applicable. Your lender will review mortgage insurance requirements with you. 
• In rare cases, you could be required to pay a Federal Recapture Tax if you sell your home within the first nine years, AND earn a profit, AND your income exceeds the designated Federal Recapture Tax Income at the time of the sale. Should you fall into this category, you may be reimbursed by CHFA for the taxes paid if you complete and file the required forms. Consult a tax professional if you have questions on the Recapture Tax. 

Targeted Areas 

If you are not a first-time homeowner, or have owned a home in the past three (3) years, you may still be eligible for a CHFA loan if you plan to purchase in an area of the state targeted for revitalization, known as a Targeted Area.  (You may not own any other property at the time of loan closing)

Applicants purchasing a home in a Targeted Area should follow the income limits for "Targeted Areas" reflected on the CHFA Income, Sales Price Limits, Target Area chart.

The programs published interest rate may be reduced by 0.25% for eligible applicants purchasing in a federally Targeted Area of the state.