Connecticut Housing Finance Authority (CHFA)
Highlights of the CHFA program:
- Offers assistance to low and mid-income homebuyers
- Down payment assistance programs available
- Gift funds allowed to pay for borrower’s closing costs and prepaids
- Available for existing single family homes, 2 to 4 family homes, and condos
What is the Connecticut Housing Finance Authority?
The Connecticut Housing Finance Authority (CHFA) was created in 1969 by the Connecticut State Legislature to help low and moderate income families and individuals have more opportunities to access affordable housing.
CHFA offers a variety of home loans at below-market or competitive interest rates to eligible first-time homebuyers. CHFA also offers special loan programs that assist renters who receive public assistance move responsibly into homeownership and encourage borrowers to live in the communities where they work. The Down Payment Assistance Program (DAP) is also available to qualified homebuyers who do not have sufficient funds for a down payment or closing costs.
How does the CHFA program work?
The CHFA offers several loan programs to eligible first-time homebuyers who intend to purchase homes in areas targeted for revitalization. By meeting with a CHFA-approved Participating Lender, they can determine if you qualify for a CHFA mortgage program. There are even specialized loan programs for teachers, police officers, and military personnel.
USDA mortgages provide borrowers with the opportunity to obtain 100 percent mortgage financing. Additionally, if the property appraises higher than the contract sales price, expenses such as prepaids and closing costs may be rolled into the loan. Because little to no down payment is required, the borrower will pay a guarantee fee which is similar to FHA’s mortgage insurance.
There are Income Limits and Sales Price Limits that apply to the purchase of homes through the CHFA program. Click here to review these limits by county.
You will benefit from the CHFA program if you:
- Need down payment assistance
- Need a lenient credit score requirement
- Are a renter who would like to own a home
For more detailed information about CHFA please visit their website here.
Grants may be subject to the following: Income or income ratio restrictions may apply. Geographic location restrictions may apply. Loan product may be subject to grant terms. McGlone Mortgage Group does not award grant money or make the decisions about who receives grant funds. This is merely provided for informational purposes in order for potential borrowers to contact grantees.