CHFA HFA Advantage and HFA Preferred Loan Programs

CHFA HFA Advantage and HFA Preferred Loan Programs is a first mortgage for homebuyers in Connecticut, administered by Connecticut Housing Finance Authority (CHFA). CHFA's HFA Advantage (Freddie Mac) and HFA Preferred (Fannie Mae) are below-market-rate conventional first mortgages popular with first-time homebuyers because they carry no upfront mortgage insurance and lower monthly mortgage insurance costs. CHFA Down Payment Assistance Program loans are available alongside them. No upfront mortgage insurance costs. Lower monthly mortgage insurance costs. CHFA below-market interest rate. CHFA DAP loans available. No origination fee. Funding comes from CHFA bond proceeds (Fannie Mae HFA Preferred / Freddie Mac HFA Advantage conventional products).

CHFA HFA Advantage and HFA Preferred Loan 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.

CHFA HFA Advantage and HFA Preferred Loan Programs is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Not required to be first-time homebuyer if purchasing in a Targeted Area; may not own any other property at time of closing. On credit, the program states: Must meet Fannie Mae/Freddie Mac conventional credit underwriting standards. A homebuyer education course is required, through Free CHFA Homebuyer Education class required prior to closing. Residency requirement: Property must be in Connecticut and be borrower's primary residence. Apply through a CHFA-Participating Lender. Conventional (Fannie Mae/Freddie Mac) product. Verified active on CHFA Homebuyer Mortgage Interest Rates page, June 2026.

CHFA HFA Advantage and HFA Preferred Loan 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.

CHFA HFA Advantage and HFA Preferred Loan 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.

CHFA HFA Advantage and HFA Preferred Loan Programs serves homebuyers purchasing anywhere in Connecticut. The program targets specific areas: Non-first-time buyers eligible if purchasing in a Targeted Area; 0.25% rate discount may apply.

Applications for CHFA HFA Advantage and HFA Preferred Loan Programs go through Connecticut Housing Finance Authority (CHFA), which publishes the current terms and the application steps on its own site. Funds are reserved through Reserved/locked by CHFA Participating Lender via CHFA LOS. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.