CHFA Down Payment Assistance Program (DAP)

What is CHFA Down Payment Assistance Program (DAP)?

CHFA Down Payment Assistance Program (DAP) is a grant for homebuyers in Statewide, Connecticut.

• CHFA's Down Payment Assistance Program (DAP) is a low-interest second mortgage that helps first-time homebuyers cover down payment and closing costs when paired with a CHFA first mortgage. The DAP loan amount equals 4.00% of the lesser of sales price or appraised value (minimum $3,000), and the interest rate is set to match the first mortgage rate or 5.00%, whichever is less. The DAP is fully amortizing over the term of the first mortgage and is recorded as a second lien.
• Provides down payment and closing cost assistance as a second mortgage equal to 4.00% of the lesser of sales price or appraised value (minimum $3,000). Interest rate equals the first mortgage rate or 5.00% (5.10%-5.50% APR), whichever is less. Must be paired with a CHFA first mortgage.
• Funding comes from State and Bond.

How much assistance does it provide?

CHFA Down Payment Assistance Program (DAP) provides assistance worth 4% of the purchase price, as set by the program.

• Buyer contribution: Borrower must contribute a minimum of $1,000 of their own funds toward the purchase.
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

CHFA Down Payment Assistance Program (DAP) is structured as a grant, so it is not repaid.

• Repayment is triggered by Monthly amortizing payments alongside first mortgage and balance also due upon sale, refinance, or transfer of property.
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

CHFA Down Payment Assistance Program (DAP) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

CHFA Down Payment Assistance Program (DAP) limits household income to $124,600.

• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

CHFA Down Payment Assistance Program (DAP) caps the purchase price at $750,000.

• Eligible property types include 1-4 unit owner-occupied, condominium, planned unit development (PUD), manufactured/mobile home (per CHFA program).
• New construction is eligible.
• Manufactured homes are eligible.

Where does it apply?

CHFA Down Payment Assistance Program (DAP) serves buyers purchasing in Statewide, Connecticut.

• The program targets specific areas: Federally designated targeted areas (per IRC Section 143) in Connecticut receive higher income and sales price limits and waived first-time-homebuyer requirement. Includes census tracts in Bridgeport, Hartford, New Britain, New Haven, New London, Norwalk, Stamford, Waterbury, and other municipalities.

How do you apply?

Applications for CHFA Down Payment Assistance Program (DAP) go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through CHFA-approved Homebuyer Education / Pre-Purchase Counseling providers (HUD-approved housing counseling agencies).

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Reserved by CHFA-Participating Lender at the time of first-mortgage reservation through CHFA's lender portal, and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.