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City of New Haven Down Payment/Closing Cost Assistance Program

City of New Haven, Economic Development Administration - Housing Administration and Development · New Haven, Connecticut

Last verified
See what you qualify forOfficial program site →
Assistance

$20,000

The maximum the program publishes — not an offer

Repayment

Forgivable

Forgiven after 5 years

What is City of New Haven Down Payment/Closing Cost Assistance Program?

City of New Haven Down Payment/Closing Cost Assistance Program is a forgivable loan for homebuyers in New Haven, Connecticut, administered by City of New Haven, Economic Development Administration - Housing Administration and Development.

  • The City of New Haven provides financial assistance to income-eligible first-time homebuyers for down payment and closing costs on a 1-4 family owner-occupied home in New Haven. Assistance is structured as a zero-interest forgivable deferred loan that may be used for down payment, closing costs, or both.
  • Zero-interest forgivable loan for down payment and/or closing costs; forgiven 20% per year over five years, fully forgiven at end of five-year period.
  • This is a federal program, so it is available beyond a single state or city.
  • Funding comes from Federal (City of New Haven housing/HUD funds).

How much assistance does it provide?

City of New Haven Down Payment/Closing Cost Assistance Program offers up to $20,000 in assistance.

  • Amounts are the program's published maximums, not an offer — City of New Haven, Economic Development Administration - Housing Administration and Development determines any individual award.

Do you have to pay it back?

City of New Haven Down Payment/Closing Cost Assistance Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by Sale or transfer of the property during the five-year monitoring period unless the loan is repaid or assumed by the new owner.
  • The assistance is recorded in subordinate position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of New Haven Down Payment/Closing Cost Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — the program sets its own definition
  • The home is occupied as a primary residence
  • Assistance limited to low-income families. Amount cannot exceed the greater of 6% of the purchase price of a 1-4 family unit or $20,000. Property may be sold/transferred during the monitoring period only if the loan balance is repaid to the City or the property is transferred to an individual willing to assume the loan balance and its terms. Terms and conditions subject to change without notice. A separate City 'I'm Home' initiative press release references up to $27,500; the live program page states the 6%/$20,000 cap, which is used here.

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?

City of New Haven Down Payment/Closing Cost Assistance Program sets its income limit as follows: Limited to low-income families (income eligibility determined by the City).

  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Where does it apply?

City of New Haven Down Payment/Closing Cost Assistance Program is a federal program, so it is not limited to Connecticut.

How do you apply?

Applications for City of New Haven Down Payment/Closing Cost Assistance Program go through City of New Haven, Economic Development Administration - Housing Administration and Development, which publishes the current terms and the application steps on its own site.

  1. Contact City of New Haven, Economic Development Administration - Housing Administration and Development to reserve funds

    Funds are reserved with the provider and are subject to availability.

  2. 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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