CHFA Government Insured Mortgage Programs

What is CHFA Government Insured Mortgage Programs?

CHFA Government Insured Mortgage Programs is a first mortgage for homebuyers in Connecticut, administered by Connecticut Housing Finance Authority (CHFA).

• CHFA's Government Insured Mortgage Programs offer below-market, 30-year fixed-rate first mortgages in partnership with FHA, VA, or USDA Rural Development for low- and moderate-income Connecticut homebuyers. Down payment and closing cost assistance (DAP) is available alongside the loan. A 0.25% rate discount applies in federally Targeted Areas.
• Below-market interest rate.
• Down payment & closing cost assistance available.
• Target Area 0.25% rate discount may apply.
• No origination fee.
• Funding comes from CHFA bond proceeds.

Do you have to pay it back?

CHFA Government Insured Mortgage Programs is a first mortgage and is repaid under the terms set by Connecticut Housing Finance Authority (CHFA).

• The assistance is recorded in First 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 Government Insured Mortgage Programs is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

CHFA Government Insured Mortgage Programs limits household income to $174,440.

• 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 Government Insured Mortgage Programs caps the purchase price at $750,000.

• Eligible property types include Single Family, Townhouse, Condo, 2-4 Unit, and PUD.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

CHFA Government Insured Mortgage Programs serves buyers purchasing anywhere in Connecticut.

• The program targets specific areas: Federally Targeted Areas receive a 0.25% interest rate discount and may waive first-time homebuyer requirement and use higher income limits.

How do you apply?

Applications for CHFA Government Insured Mortgage Programs go through Connecticut Housing Finance Authority (CHFA), 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 Free CHFA Homebuyer Education course (online and at locations across Connecticut) required prior to closing.

2. 2

   Contact Connecticut Housing Finance Authority (CHFA) to reserve funds

   Funds are reserved through Reserved/locked by CHFA Participating Lender via CHFA Loan Origination System (LOS), 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.