Lift Up Homeownership

What is Lift Up Homeownership?

Lift Up Homeownership is a forgivable loan for homebuyers in Statewide, Connecticut, administered by Federal Home Loan Bank of Boston (FHLBank Boston).

• Lift Up Homeownership is an FHLBank Boston down-payment and closing-cost grant for income-eligible first-generation, first-time homebuyers purchasing a primary residence in New England, including Connecticut. Eligible buyers earning up to 120% of area median income receive a 0% grant (forgiven over a 5-year retention period) delivered through participating member banks and credit unions. Funds may be used for down payment, customary closing costs, and up to a 2-point interest-rate buydown.
• Down-payment & closing-cost grant (per-round cap; up to ~$50,000 in recent rounds).
• 0% forgivable over a 5-year retention period.
• First-generation first-time buyers up to 120% AMI.
• Up to 2-point rate buydown.
• Statewide in CT through FHLBank Boston member lenders.
• Funding comes from FHLBank Boston voluntary, board-approved Special Purpose Credit Program (separate from the AHP-regulated set-aside).

How much assistance does it provide?

Lift Up Homeownership offers up to $50,000 in assistance.

• Award tiers: Per-homebuyer grant cap is announced each annual funding round; member enrollment cap up to $400,000 ($200,000 for first two releases). Two-pool allocation: 60-day state pool, then general first-come pool.
• Buyer contribution: Each assisted household must contribute $1,000 of their own funds (cannot be a gift or gift of equity); may include earnest money deposit, cash to close, and paid-outside-closing fees. The contribution must remain in the transaction.
• Amounts are the program's published maximums, not an offer — Federal Home Loan Bank of Boston (FHLBank Boston) determines any individual award.

Do you have to pay it back?

Lift Up Homeownership is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Pro-rata subsidy repayment if sold/transferred/refinanced (and not subordinated)/foreclosed during the 5-year retention period; fully forgiven after 5 years. Obligation terminates on foreclosure, deed-in-lieu, or death of the assisted homeowner.
• The assistance is recorded in Subordinate (second) 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?

Lift Up Homeownership is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Lift Up Homeownership limits household income to 120% of the area median income, which varies by county and household size.

• Household income up to 120% of HUD AMI based on the property's location; income of all adult (18+) household members is counted.
• 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?

Lift Up Homeownership caps the purchase price as follows: No standard purchase-price limit; IRS Mortgage Revenue Bond Average Purchase Price Limits apply only in the asset-cap exception scenario.

Is there eligibility for specific groups?

Lift Up Homeownership names first-generation buyers among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Lift Up Homeownership serves buyers purchasing in Statewide, Connecticut.

How do you apply?

Applications for Lift Up Homeownership go through Federal Home Loan Bank of Boston (FHLBank Boston), 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 At least one borrower must complete FHLBank Boston-approved homebuyer education/counseling within 24 months of enrollment approval or closing. Approved organizations are listed by New England state on FHLBank Boston's Homebuyer Education/Counseling list; online options include eHome America, Fannie Mae HomeView, Finally Home!, Framework, or Home Trek (post-counseling required)..

2. 2

   Contact Federal Home Loan Bank of Boston (FHLBank Boston) to reserve funds

   Funds are reserved through First-come, first-served via FHLBank Boston Community Lending online system through approved member institutions. Enrollment submitted 15 business days before closing; funds reserved 90 days., 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.