hey prescott.
See what you qualify for

Hamden First-Time Homeownership Downpayment Assistance Program

Town of Hamden Department of Community Development (Office of Housing & Neighborhood Development) · Hamden, Connecticut

Last verified
See what you qualify forOfficial program site →
Assistance

$5,000

The maximum the program publishes — not an offer

Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Deferred

No payments until the home is sold or refinanced

What is Hamden First-Time Homeownership Downpayment Assistance Program?

Hamden First-Time Homeownership Downpayment Assistance Program is a silent second mortgage for homebuyers in Hamden, Connecticut, administered by Town of Hamden Department of Community Development (Office of Housing & Neighborhood Development).

  • A CDBG-funded down-payment assistance program run by the Town of Hamden Department of Community Development to help low- and moderate-income first-time homebuyers purchase in Hamden's CDBG target areas (Highwood, State Street, Hamden Plains). Qualified applicants receive up to $5,000 in matching funds as an interest-free, no-monthly-payment second mortgage repaid upon sale or transfer, usable for down payment and/or attorney fees.
  • Up to $5,000 matching down-payment assistance.
  • Interest-free, no monthly payments.
  • Usable for down payment and/or attorney fees.
  • $500 AGI credits for minor children, elderly, disabled, veteran/military.
  • Town-paid lead inspection for pre-1978 homes.
  • Funding comes from Federal CDBG funds administered by the Town of Hamden.

How much assistance does it provide?

Hamden First-Time Homeownership Downpayment Assistance Program offers up to $5,000 in assistance.

  • Buyer contribution: Structured as matching funds (up to $5,000) toward the buyer's down payment and/or attorney fees.
  • The program can be combined with Requires a primary first mortgage; functions as matching down-payment assistance.
  • Amounts are the program's published maximums, not an offer — Town of Hamden Department of Community Development (Office of Housing & Neighborhood Development) determines any individual award.

Do you have to pay it back?

Hamden First-Time Homeownership Downpayment Assistance Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

  • Repayment is triggered by Repayment due upon sale or transfer of the property, per the grant commitment terms.
  • The assistance is recorded in Second mortgage / lien position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Hamden First-Time Homeownership Downpayment 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 — with exceptions: No ownership in any residential property within 3 years of application.
  • The home is occupied as a primary residence
  • On credit: Not specified; Town may verify credit history.
  • A completed homebuyer education course, through HUD-approved housing/credit counseling agency; Pre-Purchase Counseling Certificate required.
  • Residency: Home purchased within the Town of Hamden, primarily in CDBG target areas (Highwood, State Street, Hamden Plains); outside-area homes case-by-case.
  • DRAFT (dpa-gap-finder 2026-06-11): pending review. Geographically targeted: purchase generally within Hamden CDBG target areas (Highwood, State Street, Hamden Plains); outside is case-by-case. Pre-purchase counseling certificate required. Liquid assets after closing must not exceed $20,000 (excl. pensions, life insurance, IRAs). All applicant taxes (incl. CT motor vehicle) must be current. Pre-1978 homes need lead assessment + clearance. Application on file rev. 4/2021; income limits and current funding should be verified with the Town (203-562-5129 x1121). A separate Hamden EDC Homebuyer Assistance Grant of up to $15,000 also exists and is not documented here.

The program excludes

  • Households above 80% of area median income

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?

Hamden First-Time Homeownership Downpayment Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

  • Household income <= 80% of median family AGI for the New Haven/Meriden MSA, adjusted for family size. Policies & Procedures table: 1p $54,950; 2p $62,800; 3p $70,650; 4p $78,500; 5p $84,800; 6p $91,100; 7p $97,350; 8p $103,650. ($500 AGI credit each for minor child, elderly 62+, disabled member, and veteran/military status.).
  • The limit applies to total household income, not only the borrower&rsquo;s.
  • The program lists a maximum household size of 8.
  • 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?

Hamden First-Time Homeownership Downpayment Assistance Program can be used for Single Family and 2-4 Unit.

Where does it apply?

Hamden First-Time Homeownership Downpayment Assistance Program serves buyers purchasing in Hamden, Connecticut.

  • The program targets specific areas: Hamden CDBG target areas - Highwood, State Street, Hamden Plains (eligible streets listed in the application). Outside-area homes case-by-case.

How do you apply?

Applications for Hamden First-Time Homeownership Downpayment Assistance Program go through Town of Hamden Department of Community Development (Office of Housing & Neighborhood Development), which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through HUD-approved housing/credit counseling agency; Pre-Purchase Counseling Certificate required..

  2. Contact Town of Hamden Department of Community Development (Office of Housing & Neighborhood Development) to reserve funds

    Funds are reserved through Application-based; priority-consideration documentation must accompany the application., 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.

Other programs in Hamden, Connecticut

See every program in Hamden, Connecticut →

90-second match

Not sure which you qualify for?

Answer 9 questions and we'll match you to every program you can actually use — in about 90 seconds. No SSN, no credit pull.

Find my programs