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CHFA Renovation Loan Programs

Connecticut Housing Finance Authority (CHFA) · Connecticut

Last verified
See what you qualify forOfficial program site →
Income limit

$174,440

The household income limit the program publishes

Price cap

$750,000

Highest purchase price the program allows

What is CHFA Renovation Loan Programs?

CHFA Renovation Loan Programs is a first mortgage for homebuyers in Connecticut, administered by Connecticut Housing Finance Authority (CHFA).

  • CHFA's Renovation Loan Programs (a pilot) let first-time homebuyers finance the purchase price and the cost of renovations in a single below-market-rate mortgage, with FHA 203(k) Limited/Standard and Conventional options. The program can also finance abandoned or foreclosed properties, with renovation funds held in escrow and disbursed to a licensed contractor.
  • Purchase + renovation costs in one mortgage.
  • Below-market interest rate.
  • FHA 203(k) and Conventional options.
  • Can finance abandoned/foreclosed homes.
  • No origination fee.
  • Funding comes from CHFA bond proceeds (pilot program).

Do you have to pay it back?

CHFA Renovation 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 Renovation Loan Programs is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: Not required to be first-time homebuyer if purchasing in a Targeted Area; may not own any other property at closing
  • The home is occupied as a primary residence
  • On credit: Per FHA 203(k) or conventional underwriting standards
  • A completed homebuyer education course, through Free CHFA Homebuyer Education class required prior to closing
  • Residency: Home must become primary residence no later than one year from closing; property in Connecticut
  • Requires construction contract with state-licensed general contractor. Home must become primary residence within one year of closing. Verified active on CHFA Homebuyer Mortgage Interest Rates page, June 2026.

The program excludes

  • Manufactured homes
  • New construction
  • Purchases above the $750,000 price cap
  • Households above $174,440

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

CHFA Renovation 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 Renovation Loan Programs caps the purchase price at $750,000.

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

Where does it apply?

CHFA Renovation Loan Programs serves buyers purchasing anywhere in Connecticut.

  • The program targets specific areas: 0.25% rate discount and waiver of first-time buyer requirement in federally Targeted Areas.

How do you apply?

Applications for CHFA Renovation Loan Programs go through Connecticut Housing Finance Authority (CHFA), which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through Free CHFA Homebuyer Education class required prior to closing.

  2. Contact Connecticut Housing Finance Authority (CHFA) to reserve funds

    Funds are reserved through Reserved/locked by CHFA Participating Renovation Loan lender via CHFA LOS, and are subject to availability.

  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.

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