CHFA HFA Advantage and HFA Preferred Loan Programs

What is 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).

Do you have to pay it back?

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.

Who qualifies?

CHFA HFA Advantage and HFA Preferred Loan 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 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.

What kind of home can it be used for?

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.

Where does it apply?

CHFA HFA Advantage and HFA Preferred Loan Programs serves buyers 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.

How do you 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.

1. 1

   Take a homebuyer education course

   Required by the program, through Free CHFA Homebuyer Education class 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 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.